Career Transition? Three Steps to Protect Your Financial Health
Changing careers can be a challenging and uncertain time, especially when it comes to our finances. Whether voluntary or involuntary, it can bring stress and upheaval to your personal and professional life. But by taking proactive and informed steps, you can navigate your transition with more confidence and safeguard your financial health.
If you’re facing a job loss or considering a career change, start by taking a step back and refocusing your attention on your financial health. Gather as much information as possible about your employment contract, severance package, and employer-sponsored benefits. Armed with this information, you can create a personal plan of attack and control what you can.
If you’re facing a job loss, find out if you qualify for unemployment benefits and determine how long you can rely on your emergency savings. If your job is stable, build up the flexibility to make a pivot should the need arise. By gathering these details, you can figure out more tangible next steps for yourself and organize a strategy to protect your overall financial trajectory.
Fill the gaps
Once you have a clearer picture of your workplace situation and choices, connect the dots to your personal finances. Identify your needs and plan to cover any gaps between your prior job’s coverage and your next career step.
- Budget: Reevaluate your budget and take steps to preserve your assets.
- Health insurance: Look into your coverage choices, such as COBRA, a different policy through the Health Insurance Marketplace, or listing yourself as a dependent on a partner or parent’s plan if you’re under 26.
- Retirement: Keep tabs on your prior workplace accounts, consult with a professional, and resist the urge to make any early withdrawals.
- Equity: Find out how your former employer is managing the transition and any resources they’re providing.
Dare to dream
Finally, don’t forget to dream. You don’t have to go it alone as there are professionals who can help you think through your decisions and plan for success. Seek out personal counselors, financial advisers or coaches, or an accountant or estate attorney to help you safeguard your assets and plan.
- Change is the only constant in life
- Work is the bedrock of our financial stability, mental well-being, and sense of identity
- Career changes can bring stress and uncertainty
By refocusing, filling the gaps, and daring to dream, you can harness a career transition, stay proactive, and protect your financial health even when things feel out of control.
Changing careers can be a daunting task, but it doesn’t have to be. By following these three steps, you can navigate your transition with more confidence and make the most of your journey. Remember, change is the only constant in life, but you have the power to control how you respond to it.