Are you thinking about making the leap to a new career? You’re not alone! According to recent research, a staggering 73% of women want to change careers. Some of the main reasons women want to make a career change include the need for higher pay, the desire to find a more fulfilling career, and escaping burnout. Whatever your reasons, switching careers can be a boon for your mental and physical well-being!
Financial concerns are a common obstacle among women seeking a career change. Changing jobs comes with many hidden expenses and considerations, including changes to health insurance coverage, retirement benefits, and cost of living. You may also have to plan for moving costs and the financial burden that comes with temporary unemployment. Below, DoughMain Financial Literacy Foundation shares some key financial tips to consider during your career change.
Use Free Online Resources for Resume Building
Refreshing your resume is essential if you want to land a career in a new industry. Instead of hiring someone to help you write a resume, take advantage of free online resume generators. This tool gets the job done in minutes! Just choose a professionally-designed template and add your own copy, colors, images, and photos. Taking advantage of free resume templates is a great way to make your resume pop without adding extra costs to your career change.
Create a Monthly Budget
Don’t let your career change derail your financial goals. Budgeting will help you stick to your financial plans during transitional periods like this. Review your spending habits over the past few months to determine your average monthly spending. Then, break down your expenses into needs and wants. Consider cutting some of your wants from your budget until you’re settled in a new, stable career. Remember to also account for any new expenses that may come with your career change, such as the cost of buying a new wardrobe or extra commuting costs. Factor these into your budget going forward to ensure your finances can handle this career change.
Build an Emergency Fund
Before quitting your job, funnel some money into an emergency fund. An emergency fund is meant to cover unexpected expenses and downtime between careers. If it winds up taking longer than you anticipated to land your next job, your emergency fund will ensure your basic needs are covered. If you’re living on your own or you’re the sole earner in your family, try to set aside at least 6 months of living expenses in your emergency savings.
Make the Most of Your Benefits
Taking advantage of your employee benefits is another thing to do before leaving your job. Make the most of any benefits available to you, including health services, tuition reimbursement, and flexible spending accounts. Make note of the benefits you regularly use, so you know what to look for in your next position. You’ll also need to make a plan to roll over your 401k to your new employer.
Plan for Relocation Expenses
If you’ll be moving for your new job, plan how you’re going to cover your relocation costs. According to Moving.com, the average cost of an interstate move was about $4,890 back in 2019, and you can expect that price to be higher today. Will your new job cover these relocation expenses? If not, are you prepared for this cost?
You’ll also need to consider the potential change in your cost of living. Landing a higher-paying job might not be worth it if you’re moving to a city with a higher cost of living. Take advantage of online cost-of-living calculators to estimate your future household spending. Doing your research will ensure moving for a new job is both financially and emotionally worthwhile!
If you’re a woman stuck in a career you no longer like, start taking steps to find something more fulfilling. Evaluate your household spending, create a new budget, and research anticipated relocation costs. And remember to take advantage of free online resume makers before embarking on your job hunt. Good planning will ensure your career change goes as smoothly as possible.
Are you looking to enhance your financial literacy? Check out DoughMain Financial Literacy Foundation for a variety of personal finance programs!