Updated April 25, 2023
Steps to Make a Financially Intelligent Career
There comes a point in everybody’s life where all we can think about is our career and future, and this phase continues until we reach that success point where we always wanted to be. But in this journey, we realize that achieving that success point is always challenging.
There are hurdles and obstacles from the beginning of our career path. The most important decisions are not about how to stay in a particular direction but which one to choose. At each such fork, we must make the right career move.
There can be many such situations where we must choose between multiple options. For example, if you are offered a job in two prestigious companies offering a handsome paycheck, which one do you prefer? Or, you are already in a good position in your company, but a better job opening comes your way. Or two higher post jobs are available in your own company, and you are eligible for both. Where do you go? What will be your decision?
These are some of the best opportunities that will come your way, and the choices you make here will be the deciding factor in achieving the success you have always dreamt of. No book of guidelines is available to make the right choice, but we should still make the most important decision of our lives intelligently
The most important thing to remember is that whatever decision you make, you must be financially intelligent; after all, your financial and intellectual stability is one the step in achieving success. Your transition from one job position to another must be smooth, and you must preserve your wise financial stability.
Here are a few Tips to make a financially Intelligent Career Move
1. Student assistance programs
Most of us will have an offer letter in hand after graduation, and instead of choosing the option of higher studies, we accept the job offer for various reasons. But after a certain time, for about 2-3 years, we realize there might be a better job out there if we complete our post-graduation, an appointment with a much better paycheck.
This transition of leaving a job to pursue higher studies can prove to be tough because instead of earning, you will be spending quite a big amount of money on your education. Then, how to make this transition smooth? How do we ensure that financial hardship is avoided?
Your job is to research and find the best possible option that suits your needs and for which you are an eligible candidate. Many countries have governments that offer low-interest loans, scholarships, work-study programs, and grants. Make sure to fit the criteria once you get these benefits. Otherwise, they can be revoked.
2. Cut down your extra expenses
The transition from a job to higher studies is huge. Suddenly, you don’t have the luxury of freely spending your money because now, you won’t have more at the end of the month. So, crucial decisions like cutting your extra expenses down have to be made.
Ask yourself whether you need a particular thing or not. If not, avoid doing it. For example, do you need an Xbox, a car, or a cable connection? Is spending your weekends in a new city or a high-class restaurant eating fancy food necessary? Wherever you can spend less. Every penny you save will add to your savings account and come in handy in times of need. Higher studies are mostly two years long, and it’s a short time.
3. Prepare for the worse
What do you do if you pass out from your post-graduation college and don’t have a job? This is the worse that could happen. Then how do you prepare for this disaster?
Remember that you are still working and are preparing for this big switch. Create a separate account to save 6 months’ worth of living expenses to prepare for the worst. A good amount of money is still deposited into your account every month.
But what if there is an emergency and you spend this saving too? Even this is a worst-case scenario. To avoid this, always keep more. Holding such a big amount will take time, so start as early as possible. It is all about how you plan the transition. The better you plan it, the more comfortable and smooth it will be.
4. Support from family
Though you might feel that the entire point of getting a job was to become financially intelligent and independent and that it was the time that you supported the family instead of the other way around, you should not forget that your family is there to help you in times of need.
It was mentioned earlier that this career move is huge, and your family must know about it. Talk to them about why this decision is important and the requirements of this change. Also, tell them that you might need their support, not just emotionally but financially intelligent as well, when such a situation arises.
Your family will take measures to help you through this time. You might feel less of yourself for doing this, and it’s better to be open about this with your family. Be thankful for their support and tell them you will return the money as soon as possible. Don’t forget, and this is only for two years.
5. Work according to a plan
Now that you know your career move and the amount you have saved for this transition, it’s time to prepare a plan about when and how the change will take place and how the money you have saved will be spent in this period.
You must plan for all the possible unexpected events. Not just that, but the plan also for the bad times. For example, your two-year study period might take longer to finish, and you might take more than 6 months to find a suitable job, or something unexpected might happen.
Also, when in transition, keep track of your spending. How much are you spending, and is it according to the plan? If not, what can you do to make up for it? It might be too tedious and stressful, but it is equally important. Always think about the future when you’re tracking your financial status. Don’t just plan for the best case scenarios. If you have planned out the worst scenarios, you might land somewhere in the middle, which is not a bad outcome.
6. What extra can you do?
There will always be tough times in your path. The money you have saved for your family’s financial support might seem insufficient in these tough times. So, what can you do to get through these times?
You might have to work part-time during your study period to get through this transition phase. Also, trying times after your end of studies might force you to take up jobs that pay less. Don’t hesitate to take these chances, as something is always better than nothing. There will always be better opportunities in the future.
7. Taking financially smart risks
If you are young and have a high-paid job, all you look for are various challenges in your career. But when these challenges are not coming your way, and the daily job seems dull and monotonous, you start looking for a change.
In such scenarios, jobs offering much better experience, knowledge, and connections might only seem appealing if they have very little to offer in money. The question then arises, when we are talking about a financially intelligent career move, how is moving from a high-paid job to one with a lower paycheck a smart move?
This move may seem stupid, but the soft assets- knowledge, experience, and connections- will definitely help you in the future. Jobs like internships, apprenticeships, and high-level assistantships are too easily dismissed because they offer less cash. But 6 months of this job plus your previous experience accounts for a much better job in the future with a paycheck even better than your current job. These risks are smart and can only be taken while you’re young.
8. Creating a plan and working on it
A plan always helps. Pre-prepare for your adverse times. Prepare beforehand for negative times in case you run out of cash. Never wait. Effective planning is very important to tackle many problems in your life. Planning is the first stage of any process. An outline of the process gives you a basic idea about how things might not go as expected. Plan for the best and the worst, and you will be capable enough to handle any bit of it. Just work hard and get your best anytime. The results will be anytime the best!! These plans will help you to make a time routine to meet your targets and to complete any task on time.
9. Assessing yourself
This is, again, very important as you need to know what you are strong at. Pursuing your strengths can be advantageous. You will always be a master of all traits in it. Your values, interests, and skills with personality tests help you to see your score in the self-assessment tests, where you can analyze your skills and where you are strong. Career professionals look at these test scores, but many opt to use free career tests and check out the best career path for you. Then you can decide whether science or commerce is your most likely strength and take up that field in your career. You can also consult career counselors who will guide you through various career options available in the marketplace.
10. Taking up active jobs in growing start-ups
India has been growing up at a great pace. The ease of doing business ranking has also improved in India. Take up a job in some start-up which is not very easy, but a good paying job. At the backend, it even helps you to learn a lot of things –the entire things about the working of a start-up, every part from logistics to supply chain to marketing, be it anything alike. It’s a good way to learn and make money altogether.
A well-paid job comes with luxuries, but the question is, will you be able to sacrifice these luxuries to achieve something bigger, something better. The above tips will help you make financially intelligent decisions and keep you emotionally and mentally confident through the process. You do not need any career counselors or guidance, just a few searches and a properly planned routine for time dedication. You can achieve all your goals without meeting any financial crises in life. Following this career plan is a much more efficient way to track down the best practices that can be resorted to tackling any financial problem. Money which you need for further studies or some educational support.
