Last year has shown us that we need to be prepared for everything, especially when looking for a new job even if you just found one, or received a promotion, because no one is secure from businesses closing during an economic decline. Sometimes, however, the reason for the job search is more positive, because you don’t want “a job”, you are looking for “the job”, a special place to reveal your potential and have the opportunity to work with industry leaders.
Regardless of the reason, along with updating your resume, you will need to think about finance management during your search, because no one canceled the rent bills or food expenses.
Assess your Current Financial Situation
First things first, know where you are now. Gather all the information about your financial situation to better plan your life while you are in the search. How much savings do you have? Do you have any debts or other obligations? What valuable assets can you sell or lend to gain profit and live while there’s no active income? Check all the bank account details, including deposits and statement reviews to see how long you can live on the current amount you have, and what is the backup plan like moving back with parents, sharing the rent with friends, or selling some of your possessions if things are not going well with the job search.
Calculate your Budget
Check your utility bills and find out how much you spend on the rent, groceries, and other essentials per month. This information will help you to properly plan your budget and estimate how much you need to cover your living costs. This is required to realistically plan your expenses and stick to it after. Don’t forget to include some extra for birthdays and an emergency fund, for cases like health issues or unplanned appliance repairs.
Think about Freelance Opportunities
Sometimes it may happen that your savings are not enough to make it through the search. For such cases, temporary engagement in freelance may be the option. There are a lot of freelance platforms, like Upwork or Fiverr where you can find a part-time job or a one-time gig. Note though, that if you are engaged in regular freelance for additional income, it’s subject to taxes that may vary depending on the country, so you will need to figure out how to properly handle freelance taxes in order to avoid trouble.
Limit your Expenses
You will need to temporarily forget about some pleasant things like coffee to go every morning, nights out, and another digital subscription for fun, be more attentive to coupons, sales, and freebies, and last but not least, start to log the expenses. Luckily, now we have all means for doing so starting from web and mobile applications to any taste to monitor your spending and know if you are moving in accordance to your budget plan. This won’t last forever, but you need to embrace new circumstances.
Following these simple yet effective tips will help you to stay on top of your financial situation. The process of searching for a job sometimes is more time-consuming than you expect and poses a lot of limitations on your budget. That’s why it’s better to get prepared and start learning the basics of finance management even when you have a regular income. It may save you in times of uncertainty and give you more flexibility when you will be searching for better opportunities in the job market.
Accounting & Finance Expert; Content Manager at AIS-CPA