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Making a career change can be a big decision. And while it can be exciting to think about all of the new possibilities, it’s also important to prepare for the financial realities of changing jobs.
The Hidden Expenses of Changing Jobs
Changing your career comes with a number of expenses that you might not think about until you encounter them. For example, you may have to pay for relocation fees if you’re moving to a new city for your new position. Many companies offer relocation packages to new employees, so be sure to ask for one and negotiate a deal that works in your favor. Here are some of the most common relocation costs to ask your employer to cover:
- Home sale fees
- Moving services
- Storage services
- Temporary housing
- Transportation
You may also have to pay for new wardrobe items, haircuts, and other professional grooming services. And don’t be surprised if you’re hit with taxes on any signing bonuses or other monetary perks associated with your new job. Furthermore, remember to factor in the cost of health insurance and other benefits (or the lack thereof) when budgeting for your new career.
How to Prepare Financially for Changing Jobs
Now that we’ve discussed some of the hidden costs of changing careers, let’s talk about how you can prepare for them financially. First and foremost, Experian notes that it’s critical to have an emergency fund in place before making any major changes in your life; that way, you’ll have a cushion to fall back on if things don’t go according to plan.
It’s also a good idea to have a good debt-to-income ratio so you are prepared to approach any lenders for funding as you go forward. This involves driving down the debt you may have tied up in your mortgage, car loans, or student loans. It’s also a good idea to pay down or pay off your credit card debt as soon as possible.
Additionally, it’s a good idea to take advantage of any 401(k) matching programs offered by your new employer; some companies will match up to 100% of your contribution. Finally, ensure you’re aware of any company-sponsored benefits (such as healthcare or tuition reimbursement) that you might be eligible for—these can save you a lot of money down the road, not to mention increase your overall quality of life.
Network With Old Friends
Reaching out to old school chums for networking purposes can be a strategic move when changing careers. Not only does this expand your professional network with individuals who might have valuable insights or opportunities in your new field, but it also presents a delightful fringe benefit: the chance to rekindle old friendships. These connections can offer both moral support and practical advice during your career transition.
An effective way to reconnect with high school acquaintances is by using an online student database. These platforms are designed to help former classmates find each other, providing an easy and convenient method to initiate contact. Whether you’re looking for career guidance or simply want to catch up, leveraging these databases can open doors to meaningful connections that benefit your professional journey and personal life alike.
Work With a Career Coach
When changing careers, working with a career coach can be a transformative experience, providing you with the guidance, clarity, and support needed to navigate the complexities of such a significant transition. A career coach can help you identify your strengths, refine your goals, and develop a strategic plan to achieve them.
Look for a career coach that offers expert advice and resources to help you make informed decisions, build confidence, and successfully position yourself in a new field. Whether you’re seeking to uncover your true professional calling or need assistance with resume writing and interview preparation, a career coach will be able to provide a comprehensive suite of services to facilitate your career change.
Create a Professional Resume
Now that you’re armed with some financial advice, let’s talk about creating a professional resume. Be sure to tailor your resume to each position you’re applying for, which includes adjusting the keywords in the skills section so that it’s the best fit for what each employer is seeking. You’ll also want to present your education and any certifications you may have that apply to your field of interest.
A little research will reveal many online resume tools that are easy to use and even free! Simply choose the template that best suits your needs, fill in your information, and add images and design elements of your choosing. Voila! You’ve got a beautiful resume that’s sure to impress potential employers and help move your career in the right direction.
Brush Up On Your Skills
Utilize freely available online resources to enhance your skill set and enhance your career opportunities. For instance, if you aspire to learn more about the possibilities of what a job in the IT field is available, you want to improve your coding abilities, or you’re embarking on a coding journey, consider exploring websites offering expert advice and support in the technical aspects of programming. With the right resources and information, you can develop your skills and knowledge DIY-style.
How to Prepare for Your New Job
In addition to preparing financially for your new job, you’ll also want to brush up on your skills and learn the ropes before starting your new position. If possible, SHRM suggests finding a mentor at your new company who can help you adjust to your new role and answer any questions you have along the way. Moreover, consider taking some courses or attending workshops related to your field. Along with making you more valuable at work, this will provide opportunities to network with other professionals in your industry.
It’s also helpful if you possess neurodiversity. Do you see the world differently than most? If so, that mindset and way of thinking leads to heightened creativity and innovation. It’s been shown that one in three entrepreneurs are neurodiverse, and many successful businesses have been started by neurodiverse leaders.
Be Prepared for a Successful Change
Changing careers can be an exciting but daunting endeavor, especially from a financial perspective. However, by being aware of the hidden expenses associated with changing jobs and taking steps to prepare financially, you can ensure you’re setting yourself up for success both professionally and personally. Writing an outstanding resume, improving your skills, and following the other tips above will help you settle into your new position without a hitch. And you’ll have a foundation for a fulfilling life in your new environment!