7 Steps To Take If Money Has You Trapped at Your Job
Written by
Martin Dasko
Edited by
Rebekah Evans
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According to the Career Gridlock report from Resume Now, 60% of workers have stayed in roles longer because they were worried about what would happen when they left their jobs. While 57% of employees cited wanting better benefits, only 13% admitted that they had made a career transition. The report also found that 35% of workers felt stuck at their current job because they were afraid of taking a pay cut and 34% were worried about financial instability during the transition.
It’s also worth pointing out that the Glassdoor Worklife Trends report found that 65% of professionals admitted to feeling stuck in their roles, yet the quit rates had reached the lowest point since June 2020. Glassdoor data also discovered that 17% of employees who made a career transition noted that their pay decreased in 2024.
Here are seven steps worth considering if money has you trapped at your current job.
Review Your Finances Meticulously
“The first step toward financial freedom is analyzing your budget,” said Sean Babin, certified financial planner (CFP) and CEO of Babin Wealth Management. “Many Americans have little awareness of their monthly spending and whether they’re operating at a surplus or a deficit.”
You can start by reviewing your expenses and reducing your spending so that you can save more and not have to worry about covering hefty expenses if you transition jobs. When you understand your spending better, you can look for ways to reduce it.
Here are a few quick ways to review your finances right now:
- Go through your fixed expenses to see if you can cut anything, like a subscription service or a membership you no longer use.
- Review your variable costs to see if you have any problem areas, like dining out or a particular hobby that’s more expensive than you realized.
Once you’ve reviewed your spending, you’ll want to move on to the next critical step.
Establish an Emergency Fund
If you feel trapped at your job, it’s likely because you’re not confident with your financial situation and overall savings. One of the first places to start is your emergency fund so that you have the resources to bail you out. Alari Aho, human resources and talent acquisition expert and CEO of Toggl Hire, pointed out that even a small emergency fund can help you because when an opportunity to move on does come up, you’ll be in a stronger position to take it.
How much should you save if you feel trapped at a job? Babin shared the following formula:
“A good rule of thumb is that for every $10,000 in salary you’re aiming for, expect your job search to take about a month, Babin said. “So, if your goal is a $100,000 salary, it may take 10 months or more to land the right position.”
This formula is different from the traditional approach that personal finance experts suggest, which is to save up anywhere from three to six months’ worth of living expenses in your emergency fund. Either way, the goal is to save up some money so that you’re comfortable with making a career transition and don’t feel stuck.
Connect With Recruiters
Babin recommended connecting with recruiters in your desired industry. “They can be invaluable in helping you navigate opportunities and get in front of the right people,” he added. Applying for jobs while you’re still employed can help you get a foot in the door and boost your confidence. You may discover that there are opportunities available to you that you weren’t aware of.
Focus on Networking
Aho recommended networking with individuals in your desired field so that you don’t feel alone. By reaching out to contacts on social media or attending events related to your field, you can better understand what’s happening in your industry. The reason that you’re feeling trapped could be that you’re not aware of your options in your industry because you’re only checking job boards. Babin pointed out that traditional job boards are saturated with hundreds, sometimes thousands, of applicants per listing, making it difficult to stand out.
“These days, it’s less about blindly applying online and more about who you know — and who can get you in the door,” Babib said. You’ll want to designate some time to attending industry events and reaching out to your network so that you can explore all possibilities.
Look for Ways To Increase Your Value
“You don’t need to quit your job right away, but small steps, such as acquiring a new skill or revising your resume, are enough to feel less stagnant,” Aho explained. If you’re feeling like you can’t leave your current job, this could be the ideal time to look into any certificates or skills that can help you upgrade your resume so that you have more to offer when applying for different roles.
Start a Side Hustle
The Glassdoor report cited that 39% of employees had taken on a side hustle to help supplement their pay. If you’re feeling trapped at a job because of the income, you’ll want to try to boost your earnings through a side job or freelance work. This could provide some wiggle room financially or you may even discover a new career path.
The best option is to offer freelance services in your field on a marketplace like freelancer.com to see if there’s demand in your industry. You’ll want to explore these platforms to see what the rates are like and if it’s worth taking on contract work. This will also help you better grasp the demand for your skill set in the current market.
Talk To Your Manager
Aho noted that you shouldn’t overlook the power of talking with your manager. If you’re feeling burned out or have concerns about compensation, you might be able to fix things through open communication with your boss. There could be an opportunity for a job transfer or advancement within reach.
“Sometimes, the conversation you’re afraid to have is the one that changes everything,” Aho said. This could be a wake-up call to discuss career advancement opportunities with senior-level management in your company.
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