When you are looking or a job, it is a great time to create a realistic budget.
Often when people are looking for work they only think about the money they will earn in their new position. They don’t take time to think about how the job search impacts their budget. This is a big mistake. When you are looking for a new job, that is the perfect time to adjust your budget. There are several things you have to keep in mind:
- Cost of getting to interviews
- Transportation costs once the new job starts
- Income needed between the start date and first paycheck
- Change in income from the old job to the new job
Cost of getting to interviews
When you are looking for a new job, there will be interviews. Occasionally, there will be only one interview. Often, however, there will be two to three interviews. Going to interviews costs money. Here are just a few of the expenses:
- gas and tolls
- public transit expense
- interview clothing
- meals between interviews if more than one is scheduled on a particular day
Transportation costs once the new job starts
Depending upon where the new job is located, there may be significant transportation costs. If you do not drive and there is no public transit available what will daily ride shares costs? Does the new job require out of state travel? Will the new job require you to travel to various locations throughout the day?
Income needed between the start date and first paycheck
Almost every job has a delay between the day you start work and the day you receive your first paycheck. It is important to calculate how much income you will need between those two dates. Once you have that number figured out, you must determine where that income will come from. Do you have significant reserves to cover the expenses? If not, do you have friends and family members who can loan you the money you need? This is the information you need to work out before you accept the job. You must come up with a plan. After all, if you fail to plan it is the same as planning to fail.
Change in income from the old job to the new job
It is not uncommon for there to be a change in salary from one job to the next. Sometimes there is an increase in salary and sometimes there is a decrease. If there is a decrease in salary, how will you cover your expenses? Are there assets you need to sell? Do you need to adjust the amount you pay in mortgage or rent? Will your children need to change schools? Do you need to adjust the car payment? Take a careful look at every dime you spend to determine how you will pay for life with your new salary.
It is a wonderful thing to look for and find a new job when you want one. This is not a time to fly by the seat of your pants. On the contrary, this is a time plan, to carefully plan. When you are looking for a job, keep your budget and budgetary needs at the top of your list of priority items. You will be glad you did. So, the question for you this wonderful day is, what impact is your job search having on your budget?