Looking for a new job is a multi-faceted process. I’ve discussed many aspects of career-building that apply even if you are just trying to keep a job you already have. But laying the groundwork for a successful job search is about more than just your reputation. A job search can take months — in some cases, up to a year or more — so it is very important to be prepared financially before you start to look.
How to prepare financially for a job search
1: Beef up your emergency savings
To cover the gap between your last paycheck at your old job and your first paycheck at your new job, it is a good idea to beef up your savings. There are many reasons this could be the case: You may need to relocate for your new job, you may find it difficult to time your start and end dates, or you may be laid off or terminated before you can line something else up. These challenges can have a ripple effect on your finances.
For example, if your new job will require that you relocate, your significant other may also need to leave their current job. If you are the primary breadwinner in your family (or you are single) then having a gap in your income can have a major impact on your life. This is especially the case if you are living paycheck to paycheck.<