Changing jobs, whether because of want or need, can be a stressful time. Your finances are likely to be in as much disarray as you are. But you know us, always solution-oriented! So, let’s take a look at navigating your finances while changing jobs.
The starting line
First, we need to know where we are so we can figure out where we’re going. Take a look at your savings, monthly expenses, and any outstanding debts/obligations. This will help you see where you stand and how to plan accordingly.
Timing is everything
Next, consider WHEN you change your job. If possible, never leave a job until you have another. This will avoid any gaps in your income and keep any established budgets intact. Additionally, check if your new employer offers hiring perks like a signing bonus or relocation assistance. No sense of leaving money on the table if they’re offering.
No money left behind
Another point to consider when navigating your finances while changing jobs is your retirement savings. If you have a 401(k) with your current employer, find out what options are available to you. You may be able to either roll it over to your new employer or into an individual retirement account (IRA). Make sure you’re aware of any tax implications and speak with a financial advisor if necessary.
Adjustment period
During this transition, it’s also crucial to revisit your budget. Make sure you account for any changes in salary, benefits, and commuting costs. Remember, a budget is a living thing and should be adjusted as needed and this is likely to be a big “as needed” moment. This adjustment period is also a good way to prevent lifestyle creep if you find yourself making more money.
Know your worth
Speaking of making more money, if you’re changing jobs within the same industry, you’re likely to be in a stronger negotiating position. Don’t be afraid to leverage your experience for a better salary and/or benefits. With the amazing budgeting skills you’ve sharpened here, the extra money can help you reach any financial goals you may have just that much faster.
Perks!
Finally, navigating your finances while changing jobs is all about the benefits. Whether it’s performance-based monetary rewards, how quickly you earn PTO, or 401(k) matching, these things can all affect your finances. Be clear on what your new employer offers, how you can take advantage of it, and how it will impact your budget.
Navigating your finances while changing jobs can feel very different depending on your perspective. If you’re seeking a new job because you want to, enjoy the hunt and look forward to the chance for growth. If you’re seeking a new job because you have to, don’t let the stress overwhelm you and know you deserve your worth. For both sides, keep these tips in mind and you’ll find yourself hitting the ground running with your new paycheck racing towards your financial goals!
Writer, rhymer, gamer: the easiest way to define the man known as Kenneth Medford. I’m a simple man who loves to learn and loves to help and I wander the digital world trying to find ways to sate my hunger for both. Basically, I’m Galactus but helpful.
Check out my other work here or reach out to me on LinkedIn.
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