Moving jobs can be a scary prospect. Firstly you’ll be leaving a business you know and a comfortable environment to jump into the unknown. Will you enjoy your new role? Will you settle in? What will the people be like?
Whist a new role can sometimes mean more money, there’s still going to be a short term impact on your finances.
We have listed some financial considerations you may want consider before you change roles.
1) Pay day
If you leave your job in the middle of a pay cycle or join your new job in the middle of a pay cycle you may find you have to wait up to six weeks for your next pay cheque. Unfortunately, rent and mortgages still need to be paid and you and your family still need to eat, so you may find your money needs to last longer than you’re used to this time around.
2) Additional Benefits
Does your place of work have additional benefits such as a subsidised canteen or gym that you are a member of? If so, you may be required to buy out the rest of your membership for the gym. As for the subsidised canteen, it may be worth seeing how much you spend on food and refreshments and see what this would cost you in the outside world.
There are a number of questions to consider when it comes to getting to your new place of work- is it closer or further away that your current place of work? What’s the best way to get there- public transport or car? What will the fares cost? What will the fuel costs be?
Another consideration if you’re driving is parking. Is parking available on site? If not, where can you park and is there an additional cost for this?
4) Dress code
What’s the dress code of your new role? If you’re going from a dress down atmosphere to a more corporate one or vice versa, you may need to buy new items to fit in with the new culture. Alternatively you may need to wear a uniform. Is this provided or will there be an extra charge for items?
Some roles may require additional training. Whilst most employers will be happy to pay for this, some may not. It’s always best to check first and find out what arrangements can be made.
Will your new work hours or commute mean you’ll have to drop your little one off earlier or later at your childcare provider? What will this mean for your finances?
On the other hand, does your new place offer childcare vouchers or similar schemes? If so, are you eligible?
Deciding to change jobs is never an easy decision, especially if you have concerns around money. Hopefully our guide will help you think about the extra costs involved and help you to better prepare your finances.