20 Aug Financially Planning to Leave Your Job
According to the Bureau of Labor Statistics, the average person will change jobs 11 times during his or her lifetime. Whatever the reason: relocation, downsizing, promotion, family, etc., chances are pretty good you will need to make a career move yourself at least once. Preparing for your new position should be enough to worry about. Having your personal financial position in tact will make that transition easier. Here’s how to make that happen.
Do a Salary Check
Know what you are worth. Are you making what you should be at your current job? (For a better idea, go to a site such as www.salary.com.) Of course, that could be the reason you are considering a move to begin with. Don’t let your current salary be the base for your asking salary. What’s the market rate for the position you are looking at? It’s helpful to have an idea what to expect before an interview. If the company is offering a salary that seems too good to be true, find out why. Research why the position is open.
Have a Plan
Don’t leave without knowing where you are going. Sometimes career moves are made in the heat of the moment, but that helps no one financially. Never quit a job without your next move in mind. Your best scenario is one where you leave one job and are able to start another right away. That way, there is only a minimal break in pay. You may also face the possibility of not making to the first payday, as some companies have a trial period. Conversely, you could decide the new job is not for you. Do you have a backup plan? (See #4 for more here.)
Make plans for insurance coverage if you are between jobs or if there is a waiting period once you begin a new job. Although it would be ideal for benefits to run cleanly right from one job to another, it rarely happens. And when do most accidents (involving expensive medical bills) happen? When you least expect them. Don’t get stuck without insurance when a family member has to go to the hospital. If you are leaving your old job amicably (or even if you are not), you may be able to apply for a COBRA extension of insurance benefits.
Build a Savings Buffer
This is probably the most important thing to remember. An emergency fund is always a good idea, but never more so than during a job transition. Remember, once you start a new job, your first paycheck will be delayed. It could be as much as two weeks, possibly a month until you get paid. Will you have enough to stay afloat until that first payday? If you aren’t sure how to start an emergency fund, this site can help you get started on one.
Finding a new job is an exciting adventure. Reduce the stress on the home side of the job by being ready financially.