4 Financial Tips for Navigating a Career Change in Las Vegas

You may be facing a career change for any number of reasons. Perhaps you’re going back to school to prepare for a new career, or you’re starting a job in a different field. Or maybe you’ve recently lost your job and are looking for new employment. No matter the reason, it’s important to make sure you have a handle on your finances. If you won’t be working for a period of time or you’ll be taking a pay cut, you want to plan ahead to ensure you have enough money in the bank to see you through.

If you need money urgently while you’re going through a career shift, personal loans in Las Vegas could help you get the money you need as a lump sum with predictable monthly payments and a set payoff date, which could be easier on your budget.

Here are four financial tips to keep in mind as you navigate a career change.

Examine your expenses

One of the best ways to prepare for a career change is to review where your finances stand now. Using a spreadsheet or a mobile app on your phone, track your expenses for the past month or two. Include your rent, mortgage payments, groceries, utilities and even coffees with friends.

You could go one step further and organize this information into categories, such as food, commuting costs, loans and savings. This way, you’ll be able to more clearly see your total spending amounts across different types of expenses.

Once you have all this information, compare your total monthly spend to your current income. Are you able to cover your bills with some money left over, or are you falling short every month? Do you need to make any changes to your budget if your income is going to change?

Reevaluate your budget

Once you have a sense of where your money is going, you could decide if you want to rework how you spend and save each month. For example, if you need to pay for supplemental education before you find a new job, carving out room in your budget for those costs may be a priority.

If you aren’t sure how to rethink your budget, you could try a new budgeting method. With the popular 50-30-20 approach, 50% of your income goes toward needs (rent, utilities), 30% toward wants (entertainment) and 20% toward your savings.

Shifting your budget may also require you to make some lifestyle changes, including planning your meals and grocery lists to save on food bills or shopping for secondhand clothing at thrift and consignment stores instead of buying new.

Boost your savings

If you’re able to set aside additional money before you make a career change, having extra savings could give you peace of mind. Setting up an automatic transfer from your checking to your savings account could make it easier to save money without you having to think about it every month.

Alongside your savings, you may want to create an emergency fund to save for an urgent situation, such as a challenging health issue or needing money to pay rent.

Look for extra work

If your budget is stretched thin while you’re looking for a new job or you want to have extra cushioning before you make the leap into a new career, see if you have the bandwidth to take on extra work. Freelancing, consulting or even spending a few hours per week as a pet sitter or food delivery driver could help.

Pay down your debt

If you have the time and resources, why not try to pay down your debt before you make a career change? There are a few popular strategies for paying down debt, including:

·  Debt snowball: You pay more toward your smallest debt first. Then, you use the money you’re saving from paying off the first debt to make larger payments on the second debt. Continue until your debts are paid in full.

·  Debt avalanche: You pay more toward the debt with the highest interest rate first. Once you’ve paid off that debt, you’ll do the same for the debt with the next highest interest rate. Use the money you’re saving from paying off one debt to make larger payments on the next debt. Keep going until your debts are paid in full.

Whichever method you choose, be sure to make at least the required minimum payment on all your debts, no matter which one you choose to focus on first.

Take steps to prepare your finances for a career change

No matter why you’re navigating a career change, it’s important to prepare your finances as much as possible. Examining your expenses, evaluating your budget, building up your savings and paying down your debt could help whether you’re making a career change out of necessity or embarking on a new adventure.

You can’t always control which way your career goes, but you can try to protect yourself and plan ahead as much as possible.

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