We all know the value of spending and investing our pay packet wisely. But what if there was a chance that shrewd financial management could help you up the career ladder and into a higher salary bracket?
Some financial advisers are increasingly discovering that career planning and investment advice go hand in hand. After all, you can only invest what you’ve earned, and sometimes, the best way to meet your investment goals is to take a higher-paying job.
Financial experts believe it can also work the other way around, with getting control of your money helping you take the next step in your professional life. Here’s how.
- Healthy finances mean you can take a risk
Switching jobs is one of the best ways to get a pay rise, but it doesn’t come without risk. That’s easier to take on if you’ve got healthy savings to absorb the cost of moving, cushion the blow if a new job doesn’t work out, or help you head back to college to develop your skills.
One financial adviser says that’s why he got into career planning. “Clients felt they couldn’t afford to make the changes they wanted to make,” Michael Haubrich, President of the Financial Service Group told CNBC. “And I realized there was a need for the financial advisor to be part of the process.”
- Being disciplined with money builds good habits for work
Employees with good financial habits are less stressed and get better sleep – and employers are noticing that means they can perform better in the job.
According to a report by the Chartered Institute of Personal Development, 8% of employees have taken time off work because of financial stress, and 19% report having lost sleep over money worries. So, getting control of your cash will leave you feeling ready for new challenges and responsibilities.
- Good financial habits can help you open your own business
If you’re looking to become your own boss, it’s easier if you have a track record of healthy money management. A good credit rating, built up by diligently paying off any credit cards or loans, is an element of getting business bank loans that can be overlooked.
Paul Samrah, Partner at Kingston Smith business advisers, says: “Many entrepreneurs appeared unaware of banks’ lending criteria, and the need to have a good credit rating and a realistic business plan.”
- Identifying financial goals can motivate your job search
Do you have a vision of retiring by 50 with a comfortable income? Or perhaps there’s a dream home that you long to buy? Getting good advice about your income, expenditure and rate of savings can spur you on to make career choices that will bring you closer to your goal.
Niv Persaud, a former recruiter turned financial adviser, says that’s why the two roles go together. “Understanding their financial needs to support their lifestyle gives people motivation for their job search,” she says.
- Smart budgeting frees up funds for professional development
Investing in yourself is often key to career advancement. Whether taking an online course, attending a conference, or hiring a career coach, these activities cost money. By getting a handle on your finances and creating a smart budget, you can identify areas for potential savings and allocate that cash towards your professional development.
This investment in yourself could pay dividends by opening doors to promotions or more lucrative opportunities.