Changing your career is a big decision that will affect many aspects of your life, most importantly the financial aspect of your life. Money is important because it affects nearly every aspect of your life and should be prioritized when making a career change.
Before you make that huge step of changing your care, you need to break down all your needs and wants (food, shelter, clothing, medical care, transportation, entertainment, and more) to know if your new salary will cater to all your basic needs and wants and leave you with something to save. Remember that the key to financial freedom is spending less than what you earn. In this article, we will discuss key financial factors to consider when making a career change.
Consider the cost of a career change
One of the most important factors to consider when changing a career is the costs involved in the entire process. Changing a career is costly because it involves many things, such as undergoing new training, costs of settling in a new place, job-hunting costs, change of wardrobe costs, memberships costs associated with joining a new trade association, and more. To void unnecessary surprises or plunge into a financial crisis, you need to consider all factors involved when changing your career. Ensure that you make adequate preparation to make the entire process smooth and stress-free. If you don’t have enough money to sustain your career change, you should consider taking small cash loans to make the transition seamless.
Know your pay schedule
If you are planning to change your career, it is vital to know what you are entitled to. Your right as an employee is all laid out by the ten natural employment standards. Make sure you understand your first and last payment.
First pay is the amount that your new employer will pay you when you get employed. Make sure you talk to your new employer to know your employment type, what your new job entails (roles), hours of work, your rate of pay, entitlements, and more. Before you sign the new employment contract, make sure you understand every detail of your job description and salary.
You also need to know your right as far as your finances are concerned. For instance, your employer needs to give you your payslip not more than a day upon payment. More so, your employer needs to keep all your employment records, including your leave entitlements, hours of work, your pay, and any other agreement you made in the employment contract.
On the other hand, final pay is the amount that the employer owes you when your employment contract ends. The Australian workplace rules under the fair act of 2009 state that employers need to pay their workers their final payment within 7 days of employment contract termination. Crucial things that you will be entitled to upon contract termination include:
- Payment of any accrued annual leave, including annual leave
- Payment of any outstanding wages including allowances and penalty rates
- Payment of Pro rate long service or redundancy pay if applicable
Determine when to find another job
Another crucial factor that will have a huge impact on your finance when you decide to change your career is whether to stay on your job while looking for another or quit then concentrate on looking for a new job. Staying on your current job while looking for another has its own pros and cons. Some of the pros include not losing your income and having up-to-date skills, which will give you an upper hand over other candidates.
On the other hand, staying on your current job while looking for another may disrupt your focus, meaning it may take longer before you find another job. You also need to ensure that your boss does not find out by keeping your plan a top-secret.
If you choose to quit your job, then concentrate on finding another job, keep in mind that it may take time before you land a new job. Research has shown that 75% of Australians take up to six months to find a new job. So, you need to ensure you have enough money to sustain yourself or your family for the entire period until you find a new job. In case you get stuck and need quick cash, you should apply for a cash loan online.
Why choose Fundo
Many Australians usually face financial difficulties when making a career change. If you need any financial assistance during this difficult period, Fundo, the leading online lender is ready to help. Unlike traditional lenders who take forever to approve a loan, our loan application and approval process are quick. Once your loan is approved, we transfer money to your account immediately.
We also understand that most of our clients seek financial assistance because they are going through hard times. That is why we allow flexible loan repayment. When you take a loan from us, we will tailor a repayment plan that suits you.
Disclaimer: The opinions expressed in the Blog are for general informational and entertainment purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific investment product. It is only intended to provide education about the financial industry. The views reflected in the commentary are subject to change at any time without notice.