Outlook Money
Changing jobs can improve one's income and lifestyle, but preparation is essential before you take this life-changing step. Here's everything you need to consider before taking this step.
Estimate and keep aside almost 6 months of living expenses to handle delays like late joining, job loss, or unexpected financial or health emergencies.
Before resigning, make sure you have enough money to cover expenses for 30–60 days in case your first salary from the new job gets delayed.
Calculate how much money for rent deposits, moving expenses, and setup costs is required and save it aside in case your new job requires you to move.
Check with the new company on their health insurance policies to ensure you are not left uninsured.
During your notice period, check with your management for when you will receive pending salary, leave encashment, bonuses, or gratuity.
While changing jobs, ensure your new salary comfortably covers EMIs and financial commitments entirely, without adding any financial burden on you.
Understand how the new salary structure changes your taxes and take-home pay; this would help you budget and plan for the future easily.
If your company has an unpaid notice period, plan your resignation and financial plans accordingly to cover it.
Maintain updated savings, skills, and professional contacts in case the new opportunity does not work out.