It is said, “Change is the only constant”. Changing jobs can be exciting as well as stressful at the same time. Switching jobs is a daring leap for employees; it is a great time for them to take a break and sharpen their skills before starting their work again or grab another opportunity and choose self-growth and a better salary.
Changing jobs comes with many challenges; employees may or may not have another job when resigning from their current working place. This change can prove to be a crucial one in an employee’s life. One must prepare for different processes, from resigning to joining another job. A few tips can help employees cope with this major life change.
Preparation for the change!
Managing personal finance while switching jobs is of utmost importance. Therefore, Money management tips can help employees plan their expenses until they join a new company and exercise their new role. It may also help them handle and control future expenses and organize their savings.
Employees looking for jobs and being the only provider to their families have to make sure that the money is enough to meet the expenses of the various needs of their families. Personal finance management tips will keep employees at ease. As preparation is important before any task, the employees must manage funds before any significant change in their life.
Some money management tips are as follows:
● Emergency Fund Set Up: unexpected expenses can pop up any time-unexpected! It is crucial to set up emergency funds to meet those surprise expenses. A lump sum of money reserved will cover expenses of payment to someone, hospital bills, or other transactions. If employees have some time before joining another company, these funds will pay for all their necessities without their usual paycheck.
The longer the downtime of the employees, the more the plans to manage funds.
If employees do not have an emergency fund set up, they can do so by stashing their money in a secured, high-yielding savings account rather than a traditional one.
● Save for relocation expenses: Managing personal finance plays a vital role when employees need to cover the expenses of moving to a new place for their jobs. They need to fit in the packer’s and movers’ charges, pay rent, and deposit for a new home with all their other expenses.
If employees cannot negotiate relocation stipends, they must keep these money management tips in mind. Employees may even consider taking personal loans from a trusted provider to cover their relocation expenses, as their interest rates would be lower than credit cards. Personal loans can provide flexible funding that could be used for moving and saving the employees other funds for other expenses.
● Unused PTO Payout: Paid Time Off, unused PTO is the paid time off that an employee has earned while working at a company but not yet taken. Companies have an exit policy that compensates employees for any vacation days they didn’t take.
This cash can be put into an employee’s savings account or used to cover relocation expenses. Snagging extra money could make employees happy and take some load off. Checking with the HR department regarding the unused PTO could ensure employees receive that sum for managing personal finance.
● Paying back extra compensation: before handing over two weeks’ notice, employees must double-check the fine print for the relocation bonus or sign-on bonus and the agreed-upon terms, as the employees may have to pay it back. According to research, if employees received advance compensation, such as a sign-on bonus, and if it had a repayment agreement that had a specific timeframe, the employees are required to stay at the company for that agreed timeframe essentially; otherwise, employees must pay back the money.
These kinds of perks are known as “golden handcuffs”, as these agreements may handcuff you to stay at the company longer. Employees may sometimes need to dig into their savings to pay off such compensations. These personal finance management tips may help the employees to be careful and double-check all the agreements and avoid a hit on their savings account.
● Save login information for HSA and 401(k) accounts: If employees have contributed money to employer-sponsored accounts such as 401(k) or Health Savings Account(HSA), then they must ensure that they keep that data safe to claim that amount later for rollovers and withdrawals.
According to research, it was observed that Americans left behind $1.35 trillion worth of 401(k) accounts and forgot about it. Employees must be aware of all these to manage funds.
● Adjustment of budget to accommodate new salary: Employees must be conscious of their expenses. If the employees have secured a job that pays a higher salary than their previous job, they must consider saving up more or investing more in profitable sectors. If the current job pays a lower wage than the last company, then employees must cut down on some expenses. Managing personal finance becomes crucial when employees are unhappy with a budget.
To Wrap Up
Switching jobs is exciting but also comes with some significant challenges. If there are circumstances that employees must apply for a personal loan, then they must choose the best, keeping in mind their requirements to meet their expenses while switching jobs.
With all the above personal finance management tips, a personal loan can act as an extra helping hand to the employees to manage funds.
Tata Capital gives their customers an instant personal loan. It funds customers’ larger expenses without pledging any collateral. They offer a flexible loan tenure of 6 years, making loan repayment much more accessible. They provide affordable and unsecured credit up to Rs. 35 Lakhs at attractive interest rates.
Advantages of Tata capital’s loan are:
● Multipurpose personal loan
● No collateral/security
● Overdraft Facility
● Zero charges on part pre-payment
When can employees take a personal loan?
Some scenarios when an employee can avail of an instant personal loan are :
● Debt Consolidation
● Start a small business
● Make a down payment
● Cover relocation charges
Customers who can take these personal loans are:
● Salaried Individuals
● Retired Individuals
How to get Tata Capital’s Personal Loan?
- Step 1: Enter details(Name, Mobile number, verify PAN number)
- Step 2: Input loan requirements- If pre-approved, input personal loan requirements within the sanctioned limit.
- Step 3: Personal details (Enter personal details and banking details)
- Step 4: Set up E-mandate- complete one-time net banking transaction authorization.
- Step 5: Additional Facility – Avail insurance to safeguard against loan liabilities.
- Step 6: Instant personal loan disbursement- Accept the e-agreement, verify personal details and get instant disbursement.
Documentation required is:
● Photo identity proof
● Income proof
● Salary slips
● Address proofs
● Employment certificate