It’s an increasingly challenging affair, managing your finances. And that’s when you actually have a stable income. What about when you’re in between jobs? It’s a daunting task, to say the least. However, no issue remains an issue as long as you plan for it.
Changing careers is an exciting affair. That feeling of having all your options opened up is unlike anything else. While finding your new job remains a priority, it’s important to control your expenditure and financial affairs. Here are a few tips to planning for managing your resources during a job transition.
· Emergency Fund: This may come off as a bit of an old idea, but the reason it’s stuck around all this time is because it is a highly effective one. You need to have a cushion to land on if things don’t work as well as you want it to. Having an emergency fund set aside to last you anywhere between six months to one year is ideal.
· Track your expenditure: This tip goes beyond a job transition and can apply to you anywhere, at any time. It cannot be stressed enough, track your expenditure. Your credit card charges, interest on loans, subscription services and food and utility costs, transportation costs, all of it. Having a clear idea of how much you spend each month is the easiest way to realize where you need cut your spending and how much you could expect to spend a month. Tracking your expenditure is also a great way to truly understand the value of money, and lowering impulsive expenses.
· Manage your credit: It’s not very financially viable to be managing numerous credit card bills, it’s best to have a couple to deal with at most. Try not to overextend on credit card expenditure during the job transition, and try to be stingy with how you use your credit cards. It’s smart to not use it for every single expenditure, always try to preserve your credit when you know you don’t have a constant income. Obviously, never miss or be late on credit card payments.
· Limit spending: This goes without saying, but you don’t currently have a stable income, so you should be looking to save money, not increase your spending. However, you can still mitigate this to some extent if you have an emergency fund set up.
· Part-time Jobs: If you think you might start struggling financially or if you don’t have enough money set aside, it might be prudent to consider getting a part-time job to earn some cash till you can land a full-time job.