Financially Preparing for a Career Change
Being financially ready for life can be difficult. Add in transitioning careers, it just got more difficult. Transitioning jobs means transitioning pay. Whether you are going to a different pay structure or staying the same, making a change between jobs can put a strain on you and your wallet. With a little planning ahead and these tips below, hopefully we can ease your transition.
- Figure out your previous and future pay schedules. There are many ways to get paid. The last thing you want to happen is to go a month without pay. Whether its daily, weekly, biweekly, or monthly, not preparing for the transition can leave you empty-handed and strapped for cash. Mark down on your calendar when the last check at your previous job and first check of your next job will come through.
- Know your expenses. As you financially prepare to quit your job, make a list of all your expenses. Know what bills you have; know when they are due. Write down all those extra expenses no one really thinks about. Like the random trips to McDonald’s, buying emergency cold medicine, or paying for a parking garage. Little expenditures can sneak up on you when you’re not paying attention. Does your new job call for new clothes or work tools? Do you need to set aside extra money? Getting an idea of how much life costs you now can save you on financial burden later.
- Give it up. If it isn’t a necessity, don’t buy it. Cut back on all your extra spending. Do you really need Netflix, Hulu, and Cable? Is listening to ads on Spotify really that bad? How about going out to eat? Groceries save money. Ditch the alcohol. Don’t stop and get that case of beer on your way home. By cutting out unnecessary items and putting that cash away, you give yourself a safety fund.
- Emergency Fund. An ideal emergency fund will have between 6-months to a year worth of money to pay off all your bills. When opportunity knocks, you answer. Which means you might not have nearly enough time to backlog 6 months’ worth of bill money. When transition jobs, sometimes it just isn’t possible to save all that you need to save; however, building an emergency fund should be an everyday thing. Even when you aren’t looking or thinking about a new job, you should always work to build a safety fund for when life happens.
Life is full of twists and turns. There’s going to be opportunities and disappointments. Hopefully, these tips help make the next big change in your life a little easier.