Transitioning out of federal service, whether due to early retirement, resignation, or workforce reductions, requires careful financial planning. This chapter provides detailed strategies to help federal employees manage their finances effectively during this period. By implementing sound financial principles, individuals can navigate the transition with stability and confidence.
Assessing Your Financial Situation
Before making a career move, it's critical to assess your current financial health. This includes:
[ul][li]Understanding Your Net Worth - Listing assets \(savings, investments, home equity\) and liabilities \(debts, loans\).[li]Reviewing Income Sources - Identifying all streams of income, including salary, side hustles, rental income, or federal benefits.[li]Analyzing Monthly Expenses - Tracking fixed \(mortgage, utilities\) and variable \(entertainment, subscriptions\) expenses to determine areas for adjustment.
2. Creating a Transition Budget
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