Setting a goal to get a new job in the new year is a big decision. How do you know it’s the right one for you in 2024?
Most HR experts recommend the modern worker should always be looking for a new job, even if they love their current position. But certain people should ramp up their search in the new year.
Whether you just started a new job or have been in the same position for years, here are three financial signs it’s time to leave.
1. Your Debt-to-Income is High
On the heels of the holidays, you might sport a lot more debt than usual. These maxed-out credit cards and outstanding lines of credit come with monthly bills that steal money from your paycheque.
Your debt-to-income (DTI) ratio expresses just how much of your paycheque goes to debt each month as a percentage.
Generally speaking, you want to keep your DTI under 36%. Anything higher makes it harder to balance your budget because so much of your income goes to bills. It can even interfere with the next personal loan you apply for if your lender checks this stat.
The tried-and-true method of lowering your DTI is paying down debt, so check out these tips to help you manage a line of credit. If you’re earning too little, you might also have to combine these tips with a better-paying job. After all, debt is easier to handle when you have more cash to throw at these accounts.
2. Your Wage Isn’t Keeping Pace with the Cost of Living
You don’t have to be mired in debt to be feeling the crunch these days. Thanks to inflation, everything in your budget costs more. Unfortunately, most wages haven’t matched the prices of consumer goods, which means your income may no longer suit your cost of living.
Balancing your budget can be challenging when your cost of living is too high. Many people wind up putting a pause on their savings to pour this money into everyday expenses and bills.
Long-term, missing these savings can interfere with your financial security. You can need to take out a personal loan or line of credit if your ignored emergency fund falls short of what you need. You can even have to delay retirement if you don’t contribute to this fund regularly.
While you can ask your employer for a raise or promotion, the single best way to increase your income is with a new job. Consider what skills you need to upgrade to qualify for a different income bracket.
3. You Need Better Benefits
Employer-sponsored health insurance plays an important role in health care in North America. Roughly half of US workers rely on private health insurance through their work, while 41% of Canadians obtain benefits through an employer for prescriptions, eye care, and dental care.
Not all benefit plans are made equal. Some may cover the entire cost of your appointment or treatment, while others pay a portion of the total bill. In some cases, you may be responsible for paying a deductible on top of everything else.
If you expect a tough year ahead health-wise, it might be a good idea to search for jobs that provide competitive benefits.
The Bottom Line:
Looking for a new job is a job in itself, but it’s one that could pay off — literally! — if you manage to snag a bigger salary and better benefits.
