Transitioning between jobs can be an exciting time; although with change comes stress and with changing jobs, can come financial stress.
To ease your mind of the financial pressure, here are some smart ways to be money savvy and ways that you can live comfortable while you change your career!
Early bird gets the worm
It’s never too early to start saving. The moment you get your first pay cheque, whether it’s a casual job or a short-term internship, set a goal to put some of what you’re earning away each week – try at least 10%. Once you get into the routine, it’ll be much easier to save and you’ll be assured that you have got an emergency stash when you need it the most. To get the most out of your new savings journey, look out for savings accounts with high interest (these will give you a little extra cash if you follow the conditions and you frequently put some money away). Interest definitely adds up over time.
Buffer to cover
One of the biggest impacts of leaving a job is the lack of an incoming cash flow. To minimise the stress from this and to help buffer this loss, you need to make sure you have enough funds saved up to keep you going whilst in between jobs. Depending on your lifestyle and what stage of life you’re at, this would vary. So aim to ensure that your emergency funds are enough to cover you for an extended period of time.
There is no definite time period in which you could be seeking your new job; it could be days, weeks or even longer. Creating a financial buffer to cover a couple of months of savings will give you some extra security and peace of mind.
Become Sherlock Holmes
When you are forced to live off your savings, you’d be surprised how much more aware you become of your spending habits. Use this time to further review what you are spending daily and look for ways that you can cut down in water usage, electricity or gas use. Think about what you routinely spend money on during the month and a great way to determine whether or not you need this break this down into Needs and Wants. If you can get by without it or find a cheaper alternative, then make the change. Not only does budgeting come in handy now but if you stick to this routine when you get your new job you’ll be able to grow your savings much faster than you thought.
Stay busy & stay focused
Looking for a job takes a lot of patience and for those who think they might go crazy without something to do – it’s time to find something that will not only fill in an empty schedule but also give you a bit of a financial boost in the meantime. Look for something casual that won’t completely tire you out, so that you don’t lose your focus on your goal of getting that job! There are many options of there, perhaps you could look at freelancing, tutoring for subjects that you were good at in university or school or try babysitting, pet-sitting or house-sitting.