There was a time, not too long ago, that many dreamed of having a job they loved and doing it for life. However, a combination of culture and economic circumstances has meant that career transitions are more commonplace than ever before. People are starting, shifting, and quitting in various industries and businesses faster than ever before.
For most, these transitional periods are among the most important things they will have to experience in their lives. It’s in these times that many working Filipinos are able to pursue long-held passions or find better jobs. In many ways, they’re an opportunity to align your career with the life you want.
Even so, these periods can also come with periods of income disruption. Emergency funds can dry up, and even if your new job comes with better long-term potential, you can’t always be sure if the short-term benefits will support your lifestyle.
With all that in mind, rethinking your money management before you make the leap makes perfect sense. Take these practical steps as you progress through that next stage of your career:
1) Reevaluate Your Monthly Budget
Transitions inevitably come with temporary income drops or new costs like transportation or upskilling. In any case, your spending plan will need a reset. List down your fixed expenses (including debt payments), estimate any upcoming changes, and start cutting down on non-essentials until you’re confident in your new cash flow. Even the simple act of listing your real expenses can give you clarity on where to go next.
2) Don’t Count Out a Personal Loan
Especially big moves like launching a business, pursuing further education, or relocating are difficult to arrange with just a typical emergency fund. In these cases, you may want to explore taking a personal loan in the Philippines from a reputable bank. While they aren’t as simple as credit card purchases, they do typically offer fixed monthly payments as well as lower interest rates. This makes them a solid choice if you’re using the funds for something that increases your earning potential. Just compare rates and terms before committing, and avoid borrowing more than you need.
3) Plan to Rebuild Your Emergency Fund
Ideally, you should set aside three to six months’ worth of living expenses in a separate savings account with reasonable accessibility. You don’t want to put too much cash in excess of six months, since any additional funds are probably better suited for investments.
In any case, a transition is bound to eat into your hard-earned emergency funds (that is, if you actually have one). While that’s what emergency funds are for, transitions do come with some uncertainty. As soon as you have your new income streams up, you’ll want to keep feeding into your emergency fund before any major splurges, in case you face another disruption.
4) Move Your Money to High-Yield Savings Accounts
If you’re holding extra cash in your savings and emergency funds while waiting for your next move, put them to work. Moving your money to high-interest savings accounts should help you earn more from your idle funds without locking them away, as would be the case if you made investments or used time deposits.
5) Set Clear Short-Term Financial Goals
The uncertainty of your transitions can induce anxiety, making decision-making harder than it normally is. To get around this, clarify what you want to achieve financially over the next 6–12 months on paper or an online document. This can help anchor your spending and savings habits and keep you from doing things you shouldn’t be doing.
6) Review Your Existing Debts
If you’re carrying multiple debts like a credit card balance, a salary loan, or an old installment plan, try to get them organized before you leave your old job. Additionally, if you’re taking a major hit to your income, consider consolidating your debts into a lower-interest loan to simplify repayments and reduce total costs. At the very least, you must restructure your budget to prioritize clearing high-interest debt so it doesn’t weigh you down while you adjust to your new career path.
7) Consider Updating Your Insurance Coverage
Remember that if your new path involves freelancing or entrepreneurship, you may lose the health benefits you previously enjoyed. Think about whether you need to upgrade your personal health insurance or get life coverage that reflects your new responsibilities.
8) Avoid Major Lifestyle Upgrades—For Now
It’s natural to celebrate a pay bump with a big purchase. But before you upgrade your phone or buy a new car, make sure your cash flow is stable and your emergency funds are on the way to recovery. You can always reward yourself later once the dust settles.
Keep Your Finances Solid Through These Changes
Preparing your finances ahead of serious life shifts can reduce stress and improve your decision-making, making it that much easier to stay focused on achieving long-term success. Whether you’re changing industries, starting your own venture, or pursuing further education, you want to make sure your money is ready to support your journey. Start exploring smarter banking solutions so that you have the support you need for your next move.
