ICICI Bank Personal Loan
You are a software developer and have a work experience of 5 years. However, you are now bored with the IT industry. So, you are planning to make a career shift. What are you planning to pursue?
Music, photography, dancing, or any other field?
We know you are scared of making this career shift. And the only fear is money. You are constantly tensed about how you will sustain yourself till you land a good project in the new field and whatnot. In such cases, you can always apply for ICICI Bank personal loan.
If you are confused about managing money while making a career shift, then this blog is specifically written for you.
Why Are You Planning to Change Your Career?
According to a LinkedIn Survey (2021), more than 75% of Indian professionals consider career change as a viable option. Hence, you are not alone in this, as many more are right by your side. However, they won’t help you in managing your finances.
You can become capable of managing your finances if you know your ‘Why?’ Why do you want to change your career? Is it because you have found your passion or because you want to contribute to society?
For example, you are a software developer earning ₹60,000/month and want to become an NGO tutor. In such a case, you won’t earn much in the first 3-4 months as an NGO tutor doesn’t have a high-paying scale.
So, you need to save a lot of money before you plan to resign from your corporate job.
Make a Priority List
“Itne Paise Mein Kya Hoga?”
For example, you have a loan of ₹2,00,000 and have to pay an EMI of ₹6,000/month. In such a case, before you resign from your high-paying job, you need to repay your loan. You have to realise that when starting a new career, you won’t have a high-paying salary for some 1-2 years.
Hence, it will be difficult for you to sustain on a low income and also pay the EMI on time. That’s why you need to make a priority list. In this list, you will include all the things that require money.
For example, you should keep a separate amount for monthly grocery expenses and travel expenses. If you have an offer to make ₹20,000/month in your new job and your monthly expense is ₹25,000 then you need to have a savings surplus in your bank account.
Don’t Save. Just Invest
Your money will only decrease if saved. However, it will grow if you know when and where to invest. Before making that career shift, you have to learn about investing money. This practice will help you in the long run as you will have a passive source of income.
What Are Your Financial Goals?
Do you plan to buy a house or a car in the next 1-2 years? Or do you plan to get married before making that career shift?
If you have any major things planned, then you need to save a lot of money before mailing your resignation. Let’s start small. Pick up a pen and paper and write down all your major financial goals for the next 12 months. For example, you can include a monthly EMI of ₹2,000 on this list. Secondly, you can also include the expense on your travel plan this year.
Conclusion
You will never have enough money to feel stress-free. That’s because life will always have some way to mess up your plans and lists. So, even if you have a surplus pool of savings, some extra expenses will pop up and you will fall short of money.
The only takeaway from this blog is that you can only control your expenses. That’s because you won’t have any clue of an urgent medical emergency. However, you can keep aside a sum of money for such unforeseen needs.
