How to balance life and career during periods of change

Estimated reading time
 5 min

In this article

• Navigating three milestones that might affect your career and finances
• How to avoid loss aversion

Life often comes with big changes – but how do they affect your career and finances?

If you’re experiencing a big life milestone, chances are it’ll effect your career (even if you have a job with great work-life balance!). That’s why we’re exploring how you can navigate these life moments while keeping things on track with your career and finances.

Growing your family

Having a child or adopting one can be an exciting time for your family. While there’ll be big changes on the horizon, here are some tips on how to balance career and family:

• Make a budget to factor in any potential changes to your income and expenses. This can help you understand what your finances will be like when growing your family so you can investigate how to keep income coming in when you might not be working as much, if at all.
• Talk to your partner (if you have one) about who will take time off and when. Having those early conversations can help you get on the same page about how to care for the new child while working or not working. How you and your partner decide to take time off work will, of course, affect your finances – it might even affect your super too.
• Investigate government support that can provide a source of income while caring for your new child. You can use our Find my Claims tool to find the right financial supports for when you’re growing your family.
• Work out what type of work options can suit your new life which could be returning to work on a part-time basis once you’ve had time to settle into parenthood. Or you might consider becoming a freelancer to spend more time with the new addition. Decide what you’re comfortable doing and plan accordingly.

Moving interstate or across the globe

Whether it’s moving overseas or interstate, having a change of scenery can come with unique opportunities for you and your job. But it does pay to be prepared so you can hit the ground running:

• Ask to work remotely if you work in a company with offices across the globe as you may be able to request to work from an interstate or international office. Part of a small business? Investigate your work from home options and see if you can work remotely. This can help you have a secure and steady source of income as you’re finding your feet in a new location.
• Saving for an emergency buffer or rainy day fund can come in handy when it’s taking a little longer to secure work in the new area you’re living in. An ideal amount will depend on your specific situation, but a good ballpark to aim for is around three to six months of expenses.
• Research the job market in the new location to gauge what skills and industries are in hot demand. This can help you work out what you want to do and how you can upskill to boost your chances of securing a job.

Gearing up for retirement

That final commute to the office or coffee catch up with your best work colleagues can be bittersweet for a lot of people. But retirement is also a great time to take things nice and slow. Here’s how you can stay financially fit when you are entering, or currently in, your twilight years:

• Check your super with the Moneysmart superannuation calculator to help you see how much super you’ll have when you retire. You can also consider other investment options to help give your ‘life after work income’ a boost.
• Apply for pension if you’re 67 years old or over and are officially done with work. This regular payment can help you cover your expenses, give you a steady source of income, and help you live comfortably as you get older.
• Think about your investing options as your work situation will change and you won’t be earning an income from employment. Knowing your risk appetite and exploring your investment options can help you work out how to earn passive income as you get on in your twilight.

Above all else – don’t get sucked into loss aversion

When planning for a big life moment, it can be easy to focus on the negative impact it might have on our career and finances. For example, having a child might mean taking time off work for an extended period of time. But instead of thinking about how wonderful it can be to welcome a new child into the family, you’re focusing on how your career trajectory is stalled and your income will be on hold.

This is what we call loss aversion, which is where the pain of losing is as powerful as the satisfaction of gaining something. It’s important that when you’re planning for these life moments that you focus on the bigger picture. If you’re really concerned about how these milestones will affect your finances, then having a budget can help you adapt to the new change these moments might bring to ensure that you’re spending smart.