The Basics of Budgeting During a Job Search

Worried about managing your money while job hunting? These 3 tips will help you keep your expenses in check in this challenging phase.

If you are older than 40 and closing in on that next job, you might still have familial responsibilities and financial obligations to consider during your job search. But fret not; these smart budgeting tips can help you through the lean period before your next job comes along.

3 Useful Tips for Budgeting While Job-Hunting
    1. Plan ahead to stretch your budget
    2. Track your daily expenses
    3. Sign up for traineeships

1. Plan ahead to stretch your budget

Your first point of support should be your severance package. Instead of spending it on a long vacation, work out how much money you need each week, and assess how long your severance package will cover your living expenses.

No severance package? Calculate how long your savings will last given your monthly expenses. Ensure that you set aside sufficient money to cover the monthly household budget and personal expenses, such as your mortgage, car loan and children’s education. Financial experts recommend a conservative estimate of nine to 12 months of savings for an emergency fund.

So if you find yourself struggling to make your savings last for this period, it’s time to start tracking your daily expenses and seeing where you can make small compromises every day.

Need guidance and support in your job hunt? Speak to a WSG Career Coach and sign up for a complimentary session today.

2. Track your daily expenses

Most of us worry about heavy financial obligations, but few of us come up with a plan to cut back on our spending. Create a budget spreadsheet to track every single cent that goes out of your pocket. Or you could use free personal finance apps like Toshl Finance or Singapore’s very own Seedly for this.

Cut out unnecessary expenses such as lavish dinners and luxury items. Then, take control of your everyday expenses, such as your mobile phone and utility bills. For example, be careful not to bust the data limit on your mobile phone — this can add as much as S$50 to your monthly bill.

3. Consider training attachments while you search

Why not use your spare time to look for training attachments to stay employed while you continue your job search? 

If you’re exploring a mid-career switch, the SGUnited Mid-Career Pathways Programme gives mid-career individuals a chance to explore new industries and gain in-demand skills while preparing for more permanent jobs in the future. The programme even offers a training allowance between $1,600 to $3,800, with the government covering up to 90% of the allowance.

Learn more about the SGUnited Mid-Career Pathways Programme today.

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