Fri. Aug 23rd, 2019

5 Ways How Switching Jobs Can Affect Your Financial Stability

4 min read

In your working life, there will surely come a stage when you will think about switching your jobs. This could be due to various reasons –either you are expecting for a higher salary, or to find a better designation in the new company. Whatever may be the reason, changing jobs is not that easy than you might think. You have to be mentally as well as financially prepared in order to make this decision fruitful.

Yes, there is no doubt that you can expect an increment in the salary that you are currently receiving from your current company. But, you will also incur some financial cost during the process which can deplete all your savings drastically. Here, in this blog we have discussed how switching your job will impact on your financial stability. Now, let us begin.

Paying for health insurance when temporarily jobless

The first challenge that you will face after leaving the job if you are getting health insurance from the company’s behalf, then you might be asked to wait for a certain amount of time in order to get the insurance coverage. In that case, you might even have to go for private insurance in order to retain the coverage, but remember this could be really expensive. That’s why it is important that before you make your job change official; make sure that you have enough savings in your pocket to pay for the insurance. Unfortunately, if your job loss is sudden and you didn’t get enough time to save, then you could go for short term loans without guarantor and use the fund for your insurance payment until you find a new job.

A drastic increase in the commuting cost

Well, after leaving the job you will be most probably spending most of your days giving interviews from one corner of the city to another. The money in your pocket will leak rapidly and if you somehow get a job that is quite far away from your home, then be prepared for a drastic increase in the commuting cost. You will have to pay higher for the bus or train and even you go with your own car, you will have to pay more for the gas and as well for the parking. Therefore, it is important that you make a budget and follow it strictly if you don’t want to face any financial crisis in the middle of the month.

Different place different lifestyle

If you used to show up in your jeans and casuals in your last office, then it is not certain that you might get the same freedom in your new company. So, if your new workplace is a bit too professional or corporate, then you might have to do some shopping in the middle of the time when you are jobless. It means that you have to upgrade your wardrobe and fill with some formal dresses and that would definitely going to cost you a good amount of money. Therefore, make sure that you have enough cash in your pocket to manage such expenses. It will be better that you purchase a few clothes earlier before giving your interviews to give a good impression to the HR department of the company where you have applied.

Change in the bonus structure

 There are many people for whom the bonus they receive is the major chunk of their salary, switching jobs can have an impact on this. The reason here is that when you switch your job, the amount of the first bonus that you will receive might be low due to the fact that it will take some time to adapt in the new place and learn about the company. Also, your new company might have a different bonus period than the one which you have left or planning to do so.  For instance, you might be used of monthly bonuses but the policy of quarterly bonus payment can damage your financial stability. Therefore, it is important that you ask all these questions from your employers in the very starting and discuss everything so that you won’t have to deal with any surprises.

Difficulty in managing expenses

Let’s face it! If you don’t have enough saving in your pocket, then it will get difficult for you to manage all the expenses. Thus, in that case, you could take financial help and either ask your friends or family members and borrow some money. Somehow, if you don’t want to sour the bond that you have with your closed ones, then you could seek professional help. There are many lenders in the market who can provide you with loans for bad credit with no guarantor and no fees for unemployed. You will get enough time to repay the loan after you have joined a new company.

Wrapping up, these were the things that you need to consider when planning to switch your job. So make sure that you prepare yourself mentally as well as financially before leaving your current job.

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