Changing Jobs, Changing Budgets: Financial Tips for Professional Women
Changing careers — or even looking for a new jobin the same field — can be a huge challenge for many women, especially if they are the heads of their family. There are many things to consider, from how it will affect your schedule and loved ones to what your financial situation will be like, not to mention how you’ll make sure you have the training and experience to get the job you want. It’s also important to think about how your job change will affect your health/life insuranceand even your retirement program. Even if you won’t be ready to retire for several years, thinking about how your future will be affected is crucial.
Fortunately, there are many ways you can prepare for a job change when it comes to the financial end of things. By creating a budget — and sticking to it — you can start off on the right foot where saving money is concerned.Getting organizedwill give you peace of mind and make the entire process easier, so get any paperwork related to your job together in one place for easy reference. Here are a few things to consider when you’re ready to change jobs.
Factor in All the Costs
It’s important to think about all the costs associated with the job you’re thinking of taking before you make a final decision. For instance, you might find a gig that pays a higher salary than the one you make now, but if your commute will be longer, or if the healthcare benefits aren’t as good, the number associated with your pay won’t mean as much. Most of us don’t think about our jobs as contributors to a budget, but when you think about the costsof gas, daycare changes, clothing, and banking fees, they can absolutely play a role in your monthly spending.
Be Smart About Your wardrobe
When starting a new job, you’ll likely want a new wardrobe to go with it. You don’t have to spend a ton of money to get some great pieces; try looking online for couponsfor stores like New York & Company, and pair those with sales to get the biggest deal. If you buy classic pieceslike crisp white button-downs, black dress pants, and simple accessories, you can keep those for years to come because they’ll always be in style.
Don’t Forget About Your Tax Liability
Some career changes can have a big impact on your income taxes, so this is something you’ll also want to make sure you check out thoroughly before making a decision. For instance, if you make a career move that leads to you working as a contractor or freelancer, you’ll probably need abusiness licenseto be considered self-employed. These vary in cost according to what state you live in and need to be renewed each year along with payment of your local taxes.
Think About Your Future
A new job can be an exciting thing, but it’s crucial to think about how this change will affect your retirement plan. You’ll want to ask about a 401Kand how the new company handles them, especially if you have an existing one. Healthcare benefits may change significantly, which can have a huge effect on your budget and yearly spending, so you’ll want to make sure you understand how they are structured before you even accept the job.
Changing jobs or moving into a new career can be hugely exciting, but it can also be hard to ensure that your future comfort will stay at the same level unless you do quite a bit of research. Don’t be afraid to ask questionsduring the interview, and look online for information about the company before you accept an offer. With a good plan, you can make your job change as easy as possible on your finances.
As always, feel free to contact us at any time. Enjoy and speak soon.
Your Beacon Wealth Management Team