Stop Asking "Should I?" — Ask "What Are My Numbers?"
The question "should I quit my job?" is actually two separate questions:
- Can I afford to quit financially? — This has a precise mathematical answer.
- Should I quit for non-financial reasons? — That's a values question only you can answer.
This guide handles question 1. Once you know the math, question 2 becomes much clearer.
The 5 Numbers You Need Before Quitting
The Quit-Job Checklist: 5 Critical Numbers
| Number | What It Tells You | Where to Get It |
|---|---|---|
| Monthly burn rate | How much you actually spend each month | 3 months of bank/credit card statements |
| Runway | How many months your savings last at current burn | Total liquid assets ÷ monthly burn |
| Financial independence number | Portfolio size that generates your income forever | Annual spending × 25 (or 28.5 for early retirement) |
| Independence gap | How far you are from never needing a paycheck | Financial independence number minus current portfolio |
| Readiness score | Overall financial independence readiness (0–100) | ShouldIQuitNow.com calculator |
Three Situations Where Quitting Makes Financial Sense
Situation 1: You've Hit Your FI Number
If your portfolio equals or exceeds 25× your annual expenses (or 28.5× for early retirement), you are financially independent. Your investments generate more than you spend. Quitting is safe — you don't need employment income to survive.
Situation 2: You Have a Long Runway + a Clear Next Income Source
If you have 18–24 months of expenses in cash/bonds AND a concrete plan for what comes next (new job, business, freelance), quitting is financially manageable even without hitting full FI.
Situation 3: You've Hit Your Coasting Number
Coasting to financial independence is the point where your existing portfolio will compound to your financial independence number by retirement age — even if you never invest another dollar. At that point, you only need to earn enough to cover current expenses. You can switch to a lower-paying, lower-stress job or go part-time without compromising your retirement.
The Danger Zone: When Quitting Is a Financial Risk
Quitting before you're ready can compound dramatically. Here's why:
- Sequence of returns risk in accumulation phase: Every year you're not invested is a year of compound growth lost
- Healthcare costs balloon immediately: COBRA or ACA plans often cost $400–$900/month
- The gap to financial independence widens: Without contributions, your retirement date pushes further out
- Re-entry gets harder: Career gaps cost real income — studies show 6–18 months to return to prior income level
The "Quit Number" Formula
Here's a simple framework to calculate whether you can quit today:
- Calculate your annual spending (be honest — include healthcare, travel, unexpected costs)
- Multiply by 25 (standard) or 28.5 (early retirement before 50) → this is your financial independence number
- Subtract your current portfolio → this is your independence gap
- If gap = $0 or negative: you can quit today
- If gap > $0: calculate how many years at your current savings rate to close the gap
Can You Quit? Decision Table
| Readiness Score | FI Gap | Runway | Verdict |
|---|---|---|---|
| 80–100 | $0 or negative | Unlimited | ✅ Quit now — you're FI |
| 60–79 | Under $200k | 2+ years | ✅ Strong position — consider it |
| 40–59 | $200k–$500k | 1 year | ⚠️ Risky — build more runway first |
| 20–39 | $500k+ | Under 6 months | 🛑 Not yet — need more time |
| Under 20 | Significant gap | Under 3 months | 🛑 Financially dangerous right now |
Enter your income, savings, and desired monthly spending. The calculator shows your readiness score, retirement age, and exactly how far you are from being able to quit.
Should I Quit Now? →Frequently Asked Questions
For permanent retirement, you need 25× your annual spending (4% rule) or 28.5× for early retirement before 50 (3.5% rule). If you spend $60,000/year, that's $1.5M (standard) or $1.71M (early). The exact number depends on your age, Social Security timeline, and healthcare costs.
Coasting to financial independence is when your portfolio is large enough to grow to your full financial independence number by retirement age — without adding another dollar. At that point, you don't need to keep saving for retirement. You can quit your high-stress job and take part-time or low-paying work that just covers living expenses. It's a popular "bridge" strategy for people who want to quit but aren't yet fully financially independent.
Consider a middle path: negotiate remote work, reduce hours, or switch to a less stressful role before full FI. Burning out and quitting abruptly is often more financially damaging than a strategic transition. If your readiness score is below 50, the math usually says: stay, accelerate savings aggressively for 2–3 more years, then quit from a position of strength.
Take your total liquid assets (savings + brokerage + accessible retirement funds) and divide by your monthly expenses. That's your runway in months. But don't forget your portfolio keeps growing while you withdraw — the real number is higher if you're investing, lower if you're drawing down cash. The ShouldIQuitNow calculator models exactly how long your money lasts under different market scenarios.
Underestimating healthcare costs. Most employees pay $200–$400/month for employer-sponsored coverage. ACA marketplace plans for a single 45-year-old can cost $450–$900/month unsubsidized. This alone can add $6,000–$12,000/year to your annual burn rate — significantly raising your financial independence number. Always model healthcare into your quit math.