The Finances Of Changing Jobs

Some people love the adventure of a new job. Other people have slightly obsessive tendencies, like yours truly, and the period until they know where everything is and can remember everyone’s name is a certain form of purgatory. But what effect does a job change have on our personal finances, and how can we best navigate the period and come out financially on top?

Higher Salary

People often change jobs in order to bag a higher salary, and that’s a great feeling. But a good job is about a lot more than salary, and deciding to move on solely on that criteria might not be the best financial decision. For instance, if the job pays more but has fewer advancement options, then it could be a short-sighted move. Similarly, if you’re happy in your current employment, I would be loath to mess with it. The grass might be greener, but a job you don’t mind showing up to every morning is nothing short of a blessing. There are a lot of considerations; location, hours, additional training or skill development, how it fits into your long-term career plans. Weigh all these up before moving on.

 

Negotiate Your Right Price

We are no longer sixteen year olds, willing to take any hourly rate at the local eatery. Employers understand and respect the fact that negotiation is part of any job deal, which doesn’t necessarily mean they’ll bend to all your wishes. An important bargaining tool is setting the bar in the right position; you don’t want to undermine your finances by selling yourself short, and you also don’t want to lose an opportunity to driving too hard a bargain. Check job advertisements and see what salary people in similar positions earn. Discuss the full spectrum of the package, and pay special attention to super.

Don’t Be Hasty

Quitting your job in a fit of venomous spleen might be something you fantasize about around 3pm every afternoon, but it’s a short-sighted financial decision. Take it as a slow process. Spend one hour writing down the three key ingredients you need for your next job. They can be practical or intellectual, but know what you want. Next, write out a list of contacts you might be able to help you find work that fulfills your profile. Put out some feelers, spend some time discussing your options and make the choice that works best for you.
Sometimes, it doesn’t all go to plan and we find ourselves having an unexpected time adrift from the work market. Don’t panic. Hopefully, you’ve been working on your emergency fund for times exactly like this. An emergency fund will stop you from making rash decisions and getting a job that isn’t right.

Just So Super

Changing jobs can often be the time things like super arrangements get confused. Work out whether you’re happy with your current provider or have a discussion with your new employees about what they’re super fund has to offer. It’s also important to check what insurance comes with your position; if you were insured at your previous job, you’ll want to know you’ll be similarly covered in your next one.