Budgeting is important when you are looking for a new job
Budgeting is always important! It’s a good idea to get in the practice early on, but a few key things will help you while you are looking for a new job.
I assume that one of the reasons you are looking for a new job is to make more money. That is often the motivation in a job search, but not always. More money might be just around the corner, but until you get it, it pays to be smart about your money.
If you are newly graduated, or have gone back to school, you may be saddled with some hefty student loans. This type of debt can be difficult for anyone to pay back in a timely, responsible manner, even in the best of times. Follow these steps to manage your loans intelligently and pay off your balances.
Budgeting When You are Out of Work
If you are job searching because you lost your job, than you are all too familiar with the stress of not having any money coming in–or significantly less money than you are use to–even if it is temporary. Budgeting is extremely important right now so that the money you do have is working for you in the best way possible. Budgeting tools area good way to see your whole financial picture at once. YNAB.com (You Need A Budget), is a very simple tool to use, but extremely effective. It is just one of several budgeting tools available.
Budgeting for a Pay Gap
When you switch jobs you may encounter a pay gap–a short period of time from your last paycheck until you get paid for your new job. Sometimes the transition is seamless and your budget won’t skip a beat. But if you go from getting paid bi-monthly to once a month, you could go a whole month before you see your first paycheck at your new job. Make sure you are budgeting for this and plan ahead.
Budgeting for Job Search Tools
In order to have the most successful job search (in the shortest amount of time possible) you will hear over and over again to treat your job search “like a job.” In other words, budget time for it every day. I also advise to budget some monetary resources to your job search in the following areas:
- A professional resume critique (start with our free one)
- A Premium LinkedIn Account
- A personal website
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