When you start your career, you have no idea where you are heading off. Hardly a few people set off with a particular goal and successfully manage to keep the ball rolling. It is normal that you switch from one job to another in the beginning. Everyone wants to seek job satisfaction and you cannot get that just within a couple of years.
Changing jobs for a certain period is not harmful to your career, but after a certain point of time, you need stability. How will you secure your future if you spend your most crucial time in just switching from one job to another? Stability is extremely important if you want to be valued. Recruiters before shortlisting your resume always figures out whether you have spent a significant time in a particular company or not.
Well, sometimes it becomes necessary to change a job. Maybe you get a wonderful opportunity. Changing a job can be exciting but it may out financial strain on your budget. Of course, you are not going to land a new job very quickly and your ex-employer is likely to disburse all due funds after a period of two or three months depending on the policy of the company. You are likely to face money problems unless you get salary from your new employer, but you can avoid them by following below mentioned tips.
Cut back on discretionary expenses
Since you are in a tight corner, you should immediately tighten your belts. As you hand a notice period to your current employer, you should start cutting back on your expenses. Open a spreadsheet, note down all expenses and filter out discretionary expenses. You will find out several expenses that take a large chunk out of your monthly income. They include but limited to night outs, dine outs, entertainment and the like.
Buy in bulk
Despite cutting back on nonessential expenses, you will have left little room to trim down your budget. You should buy groceries in bulk so that you can save more money. However, make sure that you will have consumed all of them before they go rotten.
Use cash for your regular expenses
Avoid using plastic money unless you land a new job. For all of your regular expenses, use cash. This will help you easily track your everyday expenses. In case, you encounter a big unexpected expense, you should take out Instant loans for unemployed no guarantor. These loans come with flexible repayments. The lender will set the due date on basis of your cash inflows. However, you must have a source of income to prove your repayment potential such as a part-time job. Credit cards charge higher interest rates and not all transactions come with a grace period.
Avoid impulsive purchases
Impulsive buys are the significant cause of cash shortfall for regular expenses. Try to buy only urgent and necessary items. If you do not need clothes, it is better to avoid shopping. Otherwise, you will fall prey to impulsive purchases.
Track your expenses
Making a budget is not enough to ensure that you are saving money. Track your expenses weekly or bi-weekly to make sure that you do not spend beyond your limit. Keeping tabs on expenses is a must especially if you have taken out guaranteed loans for unemployed.
The bottom line
Taking hold of finances during job transition can be difficult, but it is not impossible. You need to implement a right strategy to cut back on your spending. The more frugal you are, the better it is. Aforementioned tips can help you save money without dipping into whole of your emergency cushion.