While starting a new career can be an exciting and pivotal moment in anyone’s life, it does however come with its challenges, one of which being the careful and efficient budgeting necessary to create secure financial support through such a transition. Thoughtful consideration and planning out of your finances is a vital step in ensuring the smooth-sailing throughout this major transitional period. Therefore, to help those going through such adjustments to their financial income, we spoke to MY JAR to give some top tips to help budget through an otherwise exciting life event.
Although your new salary may look like enough for a whole new wardrobe, when getting to grips with a brand-new income it is always better to try and be as cost-effective as possible. Whilst new work clothes can often be an essential part to starting up a new career, being thrifty in your purchases and buying High Street clothing that can be rewashed (and does not need to be dry cleaned) can help you get appropriate, professional-looking clothing without draining your funds for the month. This can also help you become more experienced in managing your new income whilst also ensuring you have enough money to get you through the important starting period of your new career.
Another great way to budget your finances in this vital transition period would be to manage your funds for food and drink. With the average cost of grabbing a basic sandwich and drink in London costing from £5 to £10, one great way to save money would be to prepare your own lunches for work and to restrict the amount you go out for dinner. This could help you to cut down over half the amount of money spent on food per week, and further ease your transition into a new career by strengthening your financial stability.
It is a well-known and unavoidable fact that buying and renting in London is expensive. However, if you are already planning on living in London for your new career venture, one way to reduce the cost of such London living would be to find a place as close to your new work as possible. This will reduce costs on more avoidable expenses such as travel; with the average weekly cost of transportation in London (Zones 1 – 6) being £60.20, which comes to £2,880 per year (or closer to £2,500 including sick days and annual leave).
By choosing a home closer to work you could therefore save significant amounts of money on travel and encourage a healthy lifestyle of walking or cycling too. This will strengthen your financial security whilst also reducing the amount spent on the dreaded rush-hour underground.
Transferring a certain percentage of your salary into savings can also be a great way of ensuring your financial security during this important starting period in your new career. Moving a certain amount of money into a savings account per month not only reduces the temptation to spend large chunks of your salary, but also adds to your financial security by providing a lump sum to fall back on in the frequently unstable environment that comes with starting a new career.