Finance Globe

U.S. financial and economic topics from several finance writers.
2 minutes reading time (352 words)

5 Unexpected Costs of Switching Jobs

5 Unexpected Costs of Switching Jobs

It’s rare these days to start and finish your career within the same company. You'll probably change jobs at least once, possibly more. Anytime you're considering a new position, you should also consider the costs of switching jobs.

You might lose your 401(k) match and stock options if you leave before you’re fully vested, or allowed to keep these benefits. Leaving the company before your five-year anniversary means losing these perks. You will, however, get to keep any of your contributions. If you’re close to the five-year mark, you may consider staying just a little longer until you become fully vested

You’ll have to start over with vacation time. Most companies base your vacation days on your years of service. Starting over with a new company may mean you get with fewer vacation days. Consider negotiating more vacation time as a condition of accepting the job.

A change in dress code could mean you spend more money on clothes. Taking a management position or starting with a company with a stricter dress code means you’ll have to update your wardrobe. You don’t have to revamp your entire work wardrobe at once. Instead, purchase new items to supplement what you already have. Slowly build up your wardrobe so you don’t go broke trying to dress the part.

A new job could impact your taxes. For example, a raise could put you into a new tax bracket. Or, working for a company in a different city could mean higher local taxes. Don't start making plans for your new pay until you have an idea of how much it will be. 

Transportation and child care costs could increase. Working further away from your home means a longer commute time and higher transportation costs. You may also have to increase your child care if you’re away from home longer. And, you may find yourself picking up takeout more evenings if you don’t get home early enough to prepare dinner.

There are some costs associated with switching jobs, but weigh these against the lost-term benefits of the job. In the end, you’ll likely find that switching jobs is worth it.

Taking Time Off From College to Save Money
6 Ways to Resist Upsells and Save Money
 

Comments 1

Frank on Monday, 25 April 2016 08:32

Also while not financial costs, below are a few additional “costs” you may encounter
• Start your credibility all over
• Gain the trust of your employees
• Establish meaningful and collaborative working relationships

Also while not financial costs, below are a few additional “costs” you may encounter • Start your credibility all over • Gain the trust of your employees • Establish meaningful and collaborative working relationships
Guest
Thursday, 22 August 2019

Captcha Image