These days, no one stays in a job their whole life anymore. New challenges, new industries - the possibilities are completely open to you. Maybe you‘re ready to take a step up, follow your passion, find work/life balance, relocate or completely reinvent your career.
While changing jobs can be exciting, financially there are a few things you should think about to make sure the transition as easy as possible.
We’ve pulled together the ultimate checklist of all those money-related things you should think about when changing jobs.
There could be a gap between your last pay day at your old job, and when you first get paid at your new job – especially if you’re taking any time off in between.
Have you got enough money to cover yourself between pay days?
Make sure you estimate your living expenses and plan to have an emergency fund or appropriate savings to cover rent or mortgage payments, bills, groceries and general living expenses.
If a pay rise is on the cards – congratulations!
Before you go and splurge it on an extra dinner with friend, take check of your financial goals. Will the additional take-home pay give you the opportunity to save a bit more?
Could you potentially put aside the additional funds into a savings account to reach a savings goal or purchase that much longed-for new car faster?
If you got by before on your old salary you might not even notice the difference, but future you will thank you for the added savings bonus.
Superannuation can be a big one. Does your prospective employer have a specific super fund, or are you free to choose? How much do they contribute? Do they pay the standard 10% under the Superannuation Guarantee, or do they contribute more as part of your package? These are just some of the questions you should be asking.
It’s also important to know if they quote your new salary inclusive or exclusive of super. Make sure you’re comparing apples with apples against your current salary. Different super conditions between jobs could potentially look like a higher take-home amount on pay day, but you could be short-changing your retirement.
If you’re considering making the move to a new town or city, you’re likely to face some relocation costs. This could be for removalists, break lease costs, real estate costs to rent out your home, flights or petrol if you’re driving, or even short-term accommodation in your new city. Make sure you know what’s coming and can handle the additional expenses that may come your way. Don’t forget some employers are happy to contribute to relocation costs if you are able to negotiate this as part of your package.
The cost of living in your new town or city should also be part of your pros and cons process. If the cost of living is lower in the new location, you might find yourself better off. If it’s higher, consider if your new salary is enough to cover the difference.
Sometimes relocation doesn't mean a new city – it might just be a new part of town. Moving to a new office might mean paying for things you haven’t had to pay for in the past, like parking or public transport. On the flip side, maybe you won’t need to pay for these things anymore!
Staff benefits, such as volunteer days, flexible working, leave entitlements or working from home can play a big role when making the decision to move on. Compare the benefits of your current job against the role you’re considering to make sure you’re not being disadvantaged or you’re losing something like the odd work-from-home day that you love so much. Sometimes the financial benefit isn’t worth the lifestyle compromise.
There can be a lot of reasons you might be looking for a new job.
If money happens to be the main reason you’re looking elsewhere, why not ask your current employer for a pay rise? It seems like a scary conversation, but it will demonstrate your ambition and commitment to the company and you won’t lose the entitlements you’ve accrued over the years!
Whatever you decide to do, make a plan and compare the benefits to prepare you for the change.
Need some support with reaching your goals sooner? Whether it’s budgeting or a loan, chat to us about ways we can help you meet your financial goals.
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