For The Love of Money: 5 Ways To Ease The Stress

The way we think about money can drive and motivate us or it can stop us in our tracks. Learn 5 ways to comfortably transition careers when financial uncertainty comes into the picture.

 

If you saw a quarter on the sidewalk, would you pick it up?

What about a dollar? Ten dollars?

How do you value money?

The way we perceive and value money today is very different than the way we did 30 years ago. Today, we can tap our watches to pay subway fare. We use an app to order and pay for our coffee. In those rare times when we use a credit card and have to sign for the purchase, no one ever looks at the signature to make sure it is legitimate. I’ve had my 11-year old daughter sign for me – because she can. Many college students today do not know how to write a check. If they saw a blank check on the sidewalk, some would likely think it was garbage and walk on by.

You might live paycheck to paycheck and budget every dollar earned or spent.  You might have the luxury of financial freedom often being frivolous without a second thought. In any case, when you are considering a career transition it is essential to factor in the impact it will have on your financial health and your ability to deal with that impact.

Consider the following 5 ways to ease the stress around your finances as part of your career transition:

1. Communicate with your spouse or partner regarding the anticipated financial change to make sure you both know what to expect and how to manage it.
2. Know your complete financial picture. This not only includes assessing your current savings, investments, and debt but also considering near-future financial commitments. Talk to your financial adviser about investments linked to your current career such as 401K, restricted stock units, life insurance, etc. Know what new debts will arise with your career transition such as additional health insurance costs or losing employee incentives/discounts. If you will be earning more money, have a plan for how to pay down debts and invest for the future.
3. Decide how much you need to earn. Will your new career meet that need?
4. Plan on how to alter your budget to suit your new finances. Where can you cut back if needed? Alternatively, how will you spend your increased income to allow for more financial freedom?
5. Revisit and adjust your plan after you have started your new career. Maintain an ongoing routine to monitor your finances to avoid stress and always be in control.

Career transitions, like any major life change, are stressful enough. Being thoughtful and considering your financial changes at the onset of your career transition process will ease the journey and give you more clarity on your next iteration.