Embarking on a new career path is both exhilarating and daunting, requiring not just a leap of faith – but also financial preparation. Whether you’re venturing into entrepreneurship or transitioning to a field you’ve always been passionate about, the journey ahead demands strategic planning. First Financial is here with several pivotal tips to ensure your financial health remains strong as you pursue your career dreams.

1. Evaluate Your Emergency Fund

An adequate emergency fund is your financial safety net during a career transition. A good rule of thumb is to build your emergency fund to cover 6 to 12 months of living expenses. This fund can provide relief in case the transition takes longer than expected or if unforeseen expenses arise. Review and bolster your savings as soon as possible before your transition, as peace of mind is invaluable when stepping into the unknown. First Financial offers a variety of Savings Account options to help you reach your emergency fund goals and start your next chapter confidently.*

2. Budget for Health Insurance Costs

Health insurance is a critical consideration when leaving an employer-sponsored plan and can become a hefty expense if not planned for properly. Before accepting a new job, be sure to ask about a probationary period. Often new employees will not be able to receive some or all of their benefits until they have been employed for a certain amount of time, commonly 90 days. If this is the case, assess all your available options – including COBRA for temporary continuation of your current plan and options through the Health Insurance Marketplace. Also ensure the pricing can fit into your budget.

3. Life and Disability Insurance Coverage

Don’t overlook life and disability insurance, as losing these benefits can leave you vulnerable. Determine if your current plan allows for portability or if you’ll need to secure alternative coverage to protect against unexpected events. Ensuring continuous coverage is key to safeguarding your family’s financial future during and after your career change. If you find you’ll be left without coverage, First Financial offers options through our TruStage Insurance Program – with competitive rates and your protection in mind.

4. Retirement Savings Considerations

A career change can impact your retirement planning, especially if you’re leaving behind employer-matched contributions. Before making a move, check up on your retirement savings. Options for your existing retirement accounts include leaving the funds with your former employer or rolling them over into a new employer’s plan or an IRA. The First Financial Investment & Retirement Center can help you navigate your transition assistance options.**

5. Conduct a Financial Reality Check

Now is the time to scrutinize your spending, especially on hidden or unnecessary fees that can drain your resources. Regularly review your statements to identify and eliminate these financial leaks. Simplifying your financial obligations by consolidating debt can also free up more funds for your career transition, making it smoother and more manageable.

Small daily expenses often go unnoticed, but can cumulatively have a significant impact on your budget. Keeping a close eye on these can help identify opportunities to save, such as opting for home-cooked meals over dining out. Every dollar saved is one more dollar toward supporting your career change and maintaining financial stability. With First Financial online and mobile banking you can easily access your cards and statements to take a closer look at daily, weekly, and monthly charges easily eliminating unnecessary fees and expenses.

6. Create a Job Transition Budget

Planning for a career change involves more than just anticipating loss of income, it’s about adjusting to a new financial norm. A detailed transition budget will help you navigate this change, ensuring that you can account for all possible expenses and income changes. This foresight will allow you to adjust your lifestyle as needed, minimizing financial stress as you move toward your new career. Easily create a budget for your transition with our home budget calculator. Simply plug in your income, withholding amounts and expenses – and the tool will generate a detailed budget customized to your situation.

Embarking on a career change is a journey that involves financial preparation that can be overwhelming when navigated alone. At First Financial, we offer products and services designed to support you through every stage of your career transition. For more personalized assistance, call 732.312.1500 to schedule an appointment at your local branch today.

*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Some restrictions apply, contact the Credit Union for more information.

**Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are: