People change jobs for a variety of different reasons. Some people seek a higher salary or better opportunities. Others aim to achieve a healthier balance between work and personal life. There are also those that simply feel they need a change.
Before changing jobs, consider how it will impact your finances. Changing jobs can be exciting, but it won’t always work out the way we hope. So, here are some important things to consider before moving jobs.
Your Notice Period and Your New Starting Date
One of the conditions of employment in many companies is giving the required notice before you can leave a current position. Your notice period could be anything from 7 days to a few months. Before you start looking for a new job, you need to check your employment contract to see how much notice you need to give.
This is information you must know before looking for a new job as your potential new employer will need to know when you can start and may very well ask you to start earlier than your notice period allows. If this is the case, you will need to understand the consequences of giving less notice than you are required to give.
In some cases, you may need to pay a penalty for leaving the job before the given notice period. If you are asked by your new company to leave your current job before the notice period passes, you will need to decide if the monetary amount is worth paying to get to your new job sooner.
Creating a Financial Buffer Before you Leave Your Current Job
Many people can’t wait to leave their current job and are often eager for a new beginning. Even if you are leaving your current job and walking straight into another, it’s a good idea to have some savings put aside as a buffer in case the new job does not meet your expectations.
Living Expenses
Look at putting aside enough money to cover your bills and living expenses for at least a couple of months. That way, even if you are unemployed for a while, you should have enough money to see yourself through until you are working again.
Your Starting Salary
The other reason you need a buffer may have to do with a starting salary. While your new job may very well pay better than your old one, it is not uncommon for companies to have a policy that includes a probationary period and a slightly lower salary.
Finding the Perfect Work/Life Balance
We live in a fast-paced world where work often takes over personal time. Balancing work and personal life is crucial for your well-being and your family’s. If your current job doesn’t allow this, it might be time to find a new one.
