I recently took a new job in a new state at a new organization. During the next few months, I will share some of the knowledge that I pick up along the way. Although this advice might seem obvious at times, I think there are many areas that simply don't get the attention they deserve. Case in point for today's blog: Financial planning.
Financial planning must go beyond salary considerations
The TOTAL financial impact of a career change rarely gets discussed in most articles providing otherwise solid advice on career changes. The natural inclination is to not think about finances – other than your salary requirements – too deeply until you have a concrete job offer in hand. The risk inherent in that approach is that you might ultimately have to turn down a fantastic opportunity, or even worse, find yourself struggling financially after making an otherwise positive move.
For anyone considering a career change within or outside your current organization that might involve moving to a new state or country, I highly encourage you to proactively assess your financial resources. Doing this sounds like a no-brainer, but the value of the exercise can’t be overstated. This article from Forbes provides a good place to start:
According to the article the main areas of focus should be:
Building your savings account
Ensuring you have sufficient funds to cover any transition gaps for you and your spouse/partner if applicable
Forecasting your “future” budget to account for potential cost-of-living differences
Defining the non-salary benefits that matter most to you
Deciding if you can accept less money in exchange for future career growth
In my experience, these are vital steps that you should start when you get serious about planning your job search. Depending on your personal financial situation, you might need six months to a year to get everything to a place where you feel comfortable making the leap.