When considering a job change whether it is voluntary or involuntary you need to be concerned about your financial situation.
Either way you need to plan on how this change will effect you now and in the future.
Medical Benefits
If you are facing an eminent lay off you may want to take advantage of your companies benefits before they expire. Scheduling trips to the dentist, the eye doctor, or any other medical needs before your benefits expire can help you avoid costly expenses.
Retirement Contributions
If you are contributing to a 401k plan and you know that you may be loosing your job, you may consider ending that contribution if you are worried about becoming cash poor during your job search. What ever you decide, you need to understand your retirement plan and the options available to you.
Emergency Funds
If you still have a job you should build up a savings cushion to handle emergency expenses or to help you get through times of unemployment should you loose your job. This money needs to in an account that you can get your hands on quickly when you need it.
Plan Your Life
If you think that you are going to loose your job soon or you have lost your job you need to take a look at all of your expenses to determine what you can reduce or eliminate. Reducing your monthly cash out flow is critical during a time of unemployment. Consider reducing or eliminating your cable TV, canceling subscriptions, and stop eating out. Plan your activities to reduce the number of trips to the store. Plan your meals to ensure the best use of your food and make sure that food is consumed and not thrown out. Wear more clothing in the winter so that you can turn the heat down. Check for window and door leaks as well. Fix your old car instead of buying a new one. Consider delaying any purchases that are not necessary. Do a thorough review of your monthly budget to see where your money goes and look for opportunities to save. Being diligent in your planning will save you money.
Taxes
It is important to remember that your taxes will change when your job changes. If you take a new job that pays more than your last one you will probably have to pay more in taxes. If you are looking for a new job your search efforts may be deductable. Remember to keep track of these expenses.
Once you understand you financial situation you will be better prepared for your job search. You will know what you need financially in a new job and you will be better prepared to make the necessary decisions that affect your future.
