*Did you know that the average person will change jobs 10 times during their lifetime? Crazy huh!
For whatever reason you may be switching careers (downsized, moving, new opportunities) it can be extremely stressful not only on yourself but on your finances as well. Let’s talk about some options.
- Unemployment. File for unemployment if you can. To qualify for unemployment insurance your previous employer must approve that you were laid off. Each state has different eligibility requirements so you will need to visit the Department of Labor website here.
- Severance Package. Make sure you understand it and get reimbursed for any vacation or personal days you have not used. Sell any stock you have with that company that can be sold. Some companies also let you negotiate your severance package, keep that in mind when sealing the deal.
- Medical Insurance. Sometimes this may end immediately after losing a job, sometimes you have 30 days. Look into your options and see what fits you best. COBRA is one program that may be able to help you stay covered until you find a new solution. Click here to learn more.
- Retirement Accounts. Check with your previous employer to consider rolling over eligible assets into an IRA. Note that there may be added expenses, penalties or sales charges
- Reduce Spending. Itemize your current expenses. Cut back on simple luxuries and call credit card companies to see if you can reduce interest charges and lower payments.
- List Your Assets. Find out exactly how much you have invested in mutual funds, stock options, retirement, savings accounts and checking accounts.
3 things you should NOT do….
- Withdraw from your 401(k).
- Rely on a home equity line of credit
- Abuse credit cards.
It may be tempting to use these 3 backups in a time when you need money but try to stay away from it. They may cause you more stress than satisfaction.
*CAREERREALISM – 6 Tips For Managing Your Finances During A Career Transition by Ruth Cameron