Bankrate survey shows that 56% of the workforce are likely to look for a new job in the year ahead, up from 51% in 2022, as more workers seek a better work-life balance following the Great Resignation.
Sophia Bera Daigle, CEO and founder of Gen Y Planning, a financial planning firm for millennials, stated that in addition to higher pay, workers are now placing more importance on having flexible hours and the ability to work remotely. This shift in priorities reflects a change in the nature of work for many people.
Bankrate’s survey revealed that even among hybrid workers, a significant number of them prefer working from home. Half of those who work from home some of the time expressed their desire to do so all or most of the time. Meanwhile, about a third of those who are currently working from home most of the time said they would like to work remotely permanently if given the option.
Bera Daigle, a member of CNBC’s Advisor Council and a certified financial planner, had already realized that the traditional daily routine wasn’t for her even before the pandemic. Having worked at conventional financial planning firms since 2007, she left her job to have the freedom to work from any location she preferred.
Even though there are concerns about a possible recession, job seekers can still find numerous opportunities for a flexible work arrangement. As per experts, in a cooling yet strong job market, workers have an advantage, allowing them to resist the directives to return to the office.
As the trend of remote working accelerates, the lifestyle of a digital nomad has become an increasingly popular goal for many. According to the job platform MBO Partners, the number of digital nomads in the U.S. has increased by 9% in just 12 months from 2021 to 2022, bringing the total to almost 17 million.
Bera Daigle recommended a few things to do first if you’re considering a significant career change for increased location flexibility or to eliminate commuting.
- To enhance your financial position before leaving your present job, Bera Daigle suggests paying off your debts, mainly high-interest credit card balances, to improve your monthly cash flow and save more money.
- According to Bera Daigle, “It’s really important to have emergency savings.” You should set aside a portion of your monthly salary into a separate savings account. Financial experts usually recommend having at least three months’ worth of expenses in an emergency fund, or more if you are the sole provider for your family.
- Bera Daigle suggests maximizing your contributions to your 401(k) plan if you have access to it because it might take some time to find a new job and become eligible for a new 401(k) plan. Although you could eventually roll your old 401(k) into your new workplace plan or an individual retirement account, there could be a waiting period of several months or even a year before you can start participating.
- Bera Daigle suggests opening a taxable investment account to help supplement your income if you have already achieved your short-term savings goals and your retirement contributions are on target. Although brokerage accounts do not offer the same tax advantages as workplace retirement plans, they do not have income or contribution limits, and there are no restrictions on when you can withdraw funds.
If you’re new to investing, it’s best to start with an index fund that tracks the broader market, such as the SPDR S&P 500 exchange-traded fund, according to Bera Daigle. Alternatively, mutual funds can be an effective way to diversify your portfolio, but they often require higher minimum investments than ETFs.
Despite being married with a young son and owning a home in Austin, Texas, Bera Daigle still cherishes her ability to work remotely from any location. To finance extended trips with her family, she sets aside money every month into “savings buckets” – a common tactic for covering expenses such as travel and leisure. Bera Daigle also makes use of travel rewards and credit card points to reduce the cost of airfare and hotel stays. She believes that if she’s not using her money to live a fulfilling life that aligns with her values, she’s not doing it right.