Millennial Lawyer Quit Her $100K Job—Here’s How She Prepared First to Ensure Financial Security
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- When Erika Kullberg’s legal office declined to adjust for her family emergency, she realized quitting was inevitable.
- Firstly, she ensured financial security by beginning with an assessment of her net worth.
- She set aside funds for several months' worth of expenses and reduced her cost of living by relocating to a more affordable place.
- Explore more narratives from Personal Finance Insider.
One day, Erika Kullberg She was making more than $200,000 annually as a corporate lawyer. Then suddenly, everything changed. “After quitting my job, my income dropped to zero,” she recounted to Business Insider in 2021.
Kullberg left her law firm after she was denied an extension on a work assignment despite being in the middle of a family emergency. "It was heartbreaking, and I always say I don't blame the boss ... but in that instant, I knew I was going to quit," she told Business Insider.
For many years, Kullberg tirelessly strived to reach her current position. She found great intellectual stimulation in her role and had the opportunity to handle multimillion-dollar transactions every day. However, this demanding career required immense effort, didn’t guarantee constant satisfaction, and frequently involved extensive and erratic working hours.
She stated, 'I didn’t make evening plans because I couldn’t tell whether I would finish work at 7 PM or 2 AM; such an unpredictable lifestyle doesn’t allow for planning.'
Everything reached a critical point when she was refused the extension, and despite having previously desired this lifestyle immensely, it was no longer beneficial for her. Thus, she departed.
Nevertheless, such decisions often involve practical considerations; hardly anyone can afford to experience a complete loss of income without prior planning. When Kullberg departed from her law firm—along with her paycheck—she followed certain steps to guarantee her financial stability.
She evaluated her total wealth.
She mentioned that the most significant aspect was evaluating her financial status," she said. "Reviewing her finances was crucial. net worth And determining the amount of money I have in liquidity, retirement accounts, and my emergency fund."
Kullberg had already settled her student loans and carried no additional debts. She explained, “It basically comes down to math. What’s my monthly expenditure, and for how many months can I sustain this?”
Before leaving her job, she examined and utilized the advantages offered by her employer.
Once she had evaluated her individual financial circumstances, she looked into the various benefits available through her organization prior to her final day.
She mentioned that she calculated unused vacation days and reviewed her health benefits as well." She advised others to follow suit prior to leaving their full-time employment. "Examine the company’s policies: Will they compensate you for your leftover vacation time, or should you utilize them instead?
Aware that leaving her job meant losing her company-provided health insurance, she made sure to utilize those benefits beforehand. “Get your teeth sorted out and go for your yearly physical,” she advised.
Based on her individual threshold for risk, she set aside a particular sum for living costs.
Kullberg mentioned that she accumulated enough of an emergency fund To support herself for several months that she found manageable. This duration can differ from person to person, she mentioned, however experts suggest setting aside at least three to six months worth of living costs.
She clarified, 'I had a figure determined by how much risk I could handle. There were several months for which I felt quite at ease financially, so I ensured those funds were set aside.'
Some refer to this concept as a "departure fund," which is essentially a designated pool of savings reserved for scenarios like the one Kullberg encountered. These funds can be accumulated well ahead of time, even when they might not immediately seem necessary. The core idea is to amass enough financial resources to afford the liberty of exiting from an employment or circumstance that no longer serves your best interests.
Kullberg accumulated her savings gradually by maintaining a thrifty lifestyle, despite earning a substantial income. She stated, "From day one, my mindset has been to act as though I were still a penniless law student."
She adopted new habits as she aimed for her subsequent employment opportunity.
Following her departure from the law firm, she implemented several alterations to her lifestyle aimed at conserving funds as she sought out her subsequent employment opportunity. Kullberg intended to launch her own business; however, it required some time until she began generating an income from this venture.
For her, the most significant change was transitioning from a costly apartment to a more budget-friendly one. She stated, "To reduce costs swiftly, lowering your rent is the fastest method."
But for the most part, even when earning a high income, Kullberg didn't live excessively. "Ever since I was at a law firm, I was really frugal," she said. First, she was a student; then, she was working to pay down her student loans , and lastly, she was setting up her emergency fund.
Despite her increasing earnings, her way of life remained largely unchanged. After leaving her position, she didn’t face significant adjustments in her daily routine.
Kullberg currently manages a thriving business. YouTube channel regarding individual financial matters and serves as the creator of Plug and Law , a firm providing legal services.
She mentioned that not everybody might agree with your choice to make a significant alteration, but emphasized the importance of remaining faithful to your desires, understanding the reasons behind this major shift, and envisioning what lies ahead for you as a result.
Not sure how to begin? Think about consulting a financial advisor.
Finding a financial advisor It doesn’t have to be complicated. You can use SmartAsset’s free tool to find up to three fee-only financial advisors in your vicinity within minutes. These advisors have undergone scrutiny from SmartAsset and adhere to a fiduciary standard, ensuring they work in your best interest. Start your search now.
The tale was initially released in September 2021.
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