How to financially prepare for a job change

May 20, 2021 5 min read

^{By: Francisco Rodríguez, Chief Growth Officer at albo}

Some of our clients ask us for help in preparing financially for a job change in times of a COVID-19 pandemic. Let’s see some recommendations.

As a background we have that in Mexico the turnover rate is 16.75%, the highest in Latin America, and the confinement left a balance of 647 thousand 710 jobs lost in 2020, of which 560 thousand 473 were formal and 87 thousand 237 were temporary, according to the most recent figures published by the Mexican Institute of Social Security (IMSS) .

After the fall in jobs, there was a small increase with the creation of 555 thousand 600 jobs from August to November 2020. In December there was a loss of 277 thousand 820 formal jobs. According to the IMSS monthly formal employment report, 3,372 jobs were lost in January 2021, while only temporary jobs were created. This implies that they are temporary contracts.

It is precisely in this time of confinement that many workers chose to seek new job opportunities. At this time, many professionals reflected on different aspects of their lives, such as professional, academic and personal, which can lead them to make important decisions such as changing jobs, turning their career plan or training.

When you decide to change jobs for various reasons (bad work environment; low salaries; few benefits or long working hours; and lack of training, among others), you face the problem of how to manage your money wisely so that your finances do not get hurt.

At albo , the digital financial experience specially created to lead an easy and simple lifestyle, we always see how to support our clients with tools that allow you to manage your money intelligently.

^{Image: Depositphotos.com}

1. Financial Planning

Professionals change jobs five to seven times in their lifetime. This means stepping out of your comfort zone to face something new. Before making a decision, analyze your financial situation and how it may be affected, so be prepared to create your budget. Take a sheet of paper, your Excel or some note app and start writing down all your commitments so that you clearly know the expenses that changing your job will entail.

2. Separate money in Spaces

To achieve your mission, look for an app with tools to help you achieve your goal. It is a good idea to reduce expenses and use ‘Spaces’ of albo will allow you to separate money from your account for your fixed expenses such as rent, electricity, and water, so you will be prepared with the required capital. Make healthy financial decisions such as reducing expenses at home like the ant or vampire type, and look for promotions or discounts, so that little by little you begin to add to your account. Finance your job change.

3. Take advantage of mobility

The search for a new job requires time and paperwork, but you don’t want to go to a branch to do cumbersome processes, and even more, when there are advanced mobile applications such as albo so that you can do everything from your cell phone. Every peso gained is a peso saved, and better yet, more experience on your resume.

4. Create a custom CV

“Sell” yourself, promote yourself on paper or video to stand out from the aspirants. Create a resume and cover letter highlighting your skills. Identify your skills from previous jobs that you can take advantage of and adapt them creatively to the new position. It is also a good idea to invest in increasing your knowledge through courses, certifications, etc. Talk to your acquaintances, register on job portals and platforms for online professional contacts to promote your CV, and create a LinkedIn account, if you don’t already have one.

Changing jobs can be a difficult task, but it is not impossible, so do not be discouraged because the sooner you start, the sooner you will find the job you are looking for. We know it is a great challenge, but set goals and manage your money wisely to live in the search period without financial complications. A job change is not a trivial decision, but before deciding whether or not to change when faced with an opportunity, the first thing to ask yourself is whether we are financially secure and prepared to undertake that search.