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Things To Know About Money Management When Making A Career Change

Things To Know About Money Management When Making A Career Change

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Everyone deserves to have a job they love. Unfortunately, most people are too afraid to step out and pursue the careers they really want. The reality of changing industries is that it’s not always a seamless process. You might need to spend several months training or getting certified for your new position. There are also times when finding the right job in a new field isn’t as easy as people expect it to be. Practicing good money management while making a career change will help you maintain your sanity and an acceptable life quality until you land your ideal position.

Pare Things Down To The Bare Minimum

Before making this or any other major life transition like it, it’s generally a good idea to start paring things down. For instance, you might want to cut your cable and make a commitment to preparing all of your meals in-home. If you own a high-value car, think about selling it and driving around in something more modest. Anything that you can do to cut your living costs until you have a stable and sufficiently high income is guaranteed to help you out. This is especially true if your career change will involve full-time training for certification or if you’ve already lost or quit your job.

Build Up Your Savings

Spend some time building up your savings before voluntarily exiting your current position. Entrepreneurs are often advised to have at least one full year’s worth of living costs saved up before making their business pursuits full-time endeavors. This is also a good goal to set before changing careers. At the very least, try to stash away at least three month’s worth of living costs before making any major moves. This way, you won’t have to worry about losing your house or apartment, foregoing meals, or defaulting on your car loan.

Consider Unemployment Benefits

Find out if you’re qualified to receive unemployment benefits. Unexpected job loss is one of the most common motivations for seeking a new career. If you’ve lost your job due to no fault or decision of your own and fallen on tough times, you have every right to collect. You’ve been paying into them and should definitely use them to keep yourself afloat while searching for a better position.

Seek Grants And Loans To Help Support You During Training And Certification

If the career you want requires certification that you don’t currently have, make sure to apply for all of the federal student loans and grants that you’re qualified to receive. Most of these are free monies that don’t have to be paid back. If you’ve already exhausted the possibilities in free federal funds, then start considering your options in subsidized student loans instead. These have flexible repayment schedules and other benefits that unsubsidized loans do not. Even if you don’t need any special training to get started in your new career, you can always look for private or personal loans, especially if you have worthwhile assets that can act as collateral to back them. Even if your credit isn’t the best, it is possible to get specific personal loans for bad credit.

Earn Money On The Side To Help You Eke By

There’s no shame in doing whatever you have to do in order to pay the bills. For some people, this might mean pet-sitting, yard work, or a part-time, graveyard shift working as security. If you come up short after you’ve totaled up all your bills and after having accounted for all your earnings, then maybe being entirely jobless while you change careers isn’t the best decision for you. Keep in mind that if a part-time job keeps you under the earning cap for unemployment in your state, you can continue collecting a portion of your benefits until you land the right, full-time position.

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