Changing jobs is just about the most stressful thing that you can do. Research shows that the top two causes of stress are work and debt. If you take away the first then the second becomes even more of an issue so it's important to have a plan to handle this transition. The good news is that, with careful forethought and some prudent decision making, this challenging time in your life can be negotiated with relatively little pain.
There are two types of job transition; planned and unplanned. Planning your job change is a little easier because you know the time-scales but the advice remains the same and that advice begins right now. You may be thinking about changing your job but haven't made a decision yet, or maybe you are worried about redundancies. It doesn't matter what the reason is that has brought you to this, the first step is the same for everyone: start saving now.
It's savings that will help you navigate the transition smoothly. Building up a little stockpile in the bank will give you the funds to ease your way through the change. Even if you don't plan to move jobs, there's always the possibility of something terrible happening and if it does you're going to need a cushion. If you already have one then well done, now try and add just a little bit more. Also, don't just assume that your savings account is the best on the market, check out deals being offered by other companies and make sure you're getting the best deal.
In these uncertain times you're going to have to rely heavily on your savings but there are also a few things that you can do to ease your every day living if the worst does come to the worst. After all, you don't know how long you're going to be between jobs for. It could be a week, a month, six months. It's important that you start to conserve as much money as you can.
The first thing you need to do is to make a budget. Get a pen and paper (or use a spreadsheet if you have got the skills) and write down all of your monthly outgoings. Remember to include food, bills, cell phone, transport and anything else you can think of. It's a good idea to keep all of your receipts for a month to see just how much you really do spend. Once you have a total then go ahead and write down any money that is coming in. Your partners earnings, eBay profits anything, it's all valid. Once you have the two figures subtract the outgoing from the incoming. This is how much you are going to be losing every month.
Chances are it's going to be a scary figure so you're going to want to move onto the next step which is looking for places you can make savings. Have a look at your grocery receipts. Do you really need steak every night? There are going to be things on there that you can cut back on and it's important that you are ruthless. Leave a couple of luxuries on there though, to keep up morale.
Shop around, see if you are getting the best deal for other services, your TV, your dry cleaning, anything where someone else might offer you a more competitive deal. Where you can switch, do it, this is not the time to sit on your laurels, you need to take action to save those pennies.
Also, it's a good idea to look around for little ways to make extra money. Have a hunt around for old clothes, books, gadgets that you don't need any more and try selling them online. eBay is great but you might also want to check out Amazon who also allow you to sell your own items. Get creative in your hunt for other income streams, see if there are any movie production companies looking for extras in your area for instance, or register yourself as a mystery shopper for hire. All of these opportunities are just a Google search away.
The final thing to consider is your credit card. It might be tempting to use it to pay for your gas because you're a bit short, but in the long run that's just going to cost you more when you can't afford to pay it up and then get charged interest as well. Keep your card for emergencies only, you never know when your car is going to break down or your air-conditioning to splutter out and it's then that you're going to wish you weren't up to your limit.
The bottom line is that you need to cut your spending and look for alternative income where you can. Make this a habit and when you do eventually find that great new job you may find that you've got used to living leaner and you'll have that little bit extra in your wallet to pay for the holiday you always promised yourself.