Are you thinking about looking for a new job? Before you do, it’s important to make sure that you’re financially ready.
Here are a few ways you can prepare your wallet before you get serious about that new job search:
- Make sure you have enough savings. If you think you might have a break between jobs, you’ll want to check your savings account. Make sure you have enough saved up to cover your monthly bills during the transition period!
- Cut back on spending – even if temporarily. Even if you think you have sufficient savings, you can never be too careful. Before you start job hunting, take a hard look at your budget. Consider expenses you could trim to help make the financial gap between jobs less stressful.
- Don’t forget about potential relocation costs. If you’re looking at jobs that require you to relocate, make sure your budget accounts for moving costs! Remember to check things like cost of living, housing expenses, and state income tax rates in your new city.
NOTE: Some employers may offer a stipend for relocation costs – it’s never a bad idea to ask if you can negotiate those terms into your contract.
- Hang on to your 401K. If you are contributing to a 401K retirement account through your current employer, be sure to take that money with you! For example, you could choose to roll those funds into your new employer’s 401K plan, or into an Individual Retirement Account (IRA). Consult with a financial advisor to see which what strategy works best for you.
- Read the fine print. A full compensation package is made up of much more than just the salary. Look for all the details to make sure the new job is a good fit financially. Is the pay hourly, salary, or base plus commission? Do they cover a portion of employee insurance costs? Do they offer equivalent or better PTO?