How To Plan For A Financial Gap Between Careers

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Maybe you’ve outgrown your current workplace, maybe you’re moving across the country for a new adventure, or maybe you’ve decided to pursue your passion and blog full-time! Take it from someone who switched from working in high finance to social media and event planning–sometimes you just have to take a risk! That doesn’t always mean a pile of money is on the other side of the fence, so let’s get prepared.

Nothing is impossible with a little planning. There’s nothing you can’t do if you understand your risks and prepare yourself for battle. Dead set on this big change? Ready to jump ship and switch gears (and many other cliches associated with big life changes)? Plan ahead and get excited because you are going to be GREAT.

Count Your Assets

What was your past position offering you? 401K, benefits…? Take an inventory of what you have and really wrap your head around how that will change and what you can bring with you when you leave. 

Make A Budget…And Stick To It

We know, online shopping is THE BEST. But remember how important this huge life change is for you and remind yourself of that every time you see a pair of shoes you don’t need or a delicious looking green juice that costs $16. You won’t regret having a cushion while you make a transition, trust us!

Health Insurance Aches & Pains

New position offers benefits, too? AWESOME. But if your previous position offered dental, health, and vision benefits, and you’re going off solo, you need to understand this will be a big blow to the wallet and basically the cost of a monthly car payment. But you need health insurance both legally and for other obvious reasons (aka your health!). Educate yourself, talk to your friends and family, and pick up the phone and call health insurance companies to get the most up-to-date information about what plans fit that fancy budget you created.

IRA All The Way

One of the first things I personally did was roll my 401k from my old position into an IRA with investment options. Don’t let that money sit and collect dust just because you can’t touch it. Get it to work hard to grow so that one day, you can relax just a little more. And for goodness sake, never break it open and take cash out! It’s a tax nightmare! 

Get Real

Set realistic financial goals for yourself that help you stick within your budget. Maybe go out to eat with friends less and cook at home a little more. Get creative with gifts for holidays and birthdays that aren’t as expensive (handmade gifts are more thoughtful anyway!). You can still have fun without breaking the bank. Plus, there will be plenty of time for that when you are the #girlboss in your new career! So maybe just for now, get a roommate or move in with your parents.

If you are passionate about making a big change and you take a little time to plan out how you can get there realistically, you will be amazed at what you are capable of. Money comes and goes. Don’t let it dictate your life and how you find your happiness!