When you began your career, you probably felt passionate about your work, but maybe the position isn’t what you’d imagined it would be. At this point people find themselves thinking of a career change. Although reasons for the shift may be different usually they revolve around unsatisfied with the work, the company, or the working environment. If you are considering a job transition, consider our advice for financial planning before you make your move.
Bulk Up Your Savings
A career change is a huge life transition — one-third of your life is spent at work— and shouldn’t be taken lightly. Start your financial planning by defining your current budget and then add room for unusual expenses. Your new job could call for new clothes, cover more work-related costs up front, or they might not cover insurance. Make sure you are saving for these extra costs before your resignation date.
Understand Your Monthly Expenses
It is important to know how long you can last without a job, especially if you are transitioning without another prospect in sight. Understanding your monthly expenses will help you with financial planning. Beef up your savings account. When you know exactly how much you have and all of your costs, you will have a timeframe of how long you can last without income.
Get the Most Out of Your Earnings
Salary isn’t the only piece that you can negotiate. Figure out how much you want to earn and then list out what else is important to you. Do you care about insurance? What about having several weeks of vacation? Maybe you can get part of your gas paid for if you have lengthy travels to the office. Don’t forget to ask about a retirement match. All of these benefits matter just as much as your paycheck.
Is the Change Worth It
When you make a career change, sometimes you have to give up some things that are less important to you. Maybe money isn’t the most critical thing; instead you prefer maximizing your work/life satisfaction. Decisions come easier once you know what you want.
DEXSTA | Financial Planning
We care about our members which is why, At DEXSTA, we want you to achieve your financial goals by helping you save money. To learn more about how we can help you with financial planning, please contact us.