There are many reasons someone may start to consider a career change. Higher salary potential, more travel, better work-life balance, professional passion – the list goes on.
In the wake of the financial crisis, many professionals have found themselves settled into a career they never actually intended. Because of the economy, many were forced to take positions that were not in line with their actual life goals, and now they are looking around and wondering, how did I get here?
As an adult with responsibilities, making the decision to change careers is not to be taken lightly. However, with proper analysis and planning, you can rest assured that you have made the best decision possible for your future.
Do Your Research
There are many elements of a career change that you need to consider to support the planning process.
- How long will it take until you are trained and able to get a job in the new career path?
- Will you need to go back to school?
- If so, will you realistically be able to work while taking classes, or is the program too time intensive?
- What are the job prospects in the new field? Will it be challenging to get your first position?
- Will you experience a drop in salary while you get established? How about in the long term?
- How will your salary in the first five years balance with the education debt you accrue?
Additionally, you will need to objectively evaluate whether the reality of the new career fits with your vision of what it will be like.
Create a Budget
Now that you know the essential elements of what it will take to make the transition, you have to begin the financial planning process. Start with a budget. Outline all of your expenses (including the new expenses associated with school or training), the income you will have during the transition (including that of your spouse), and your savings. See where you can realistically cut back, and analyze how the numbers play together.
You may find that your savings isn’t enough to support you through the transition, and you can strategically create a plan for building that savings before you jump ship on your current job. Avoid looking to your retirement savings as supplemental income during the transition. While it may seem logical that your new and higher paying position will allow you to replenish your retirement fund, the truth is that it is a serious risk to your future stability. Make a proactive plan instead.
Consult Others for Advice
Leverage your network to gather as much information and expert advice as possible. Speak with professionals who are already working in the field to uncover any realities that you may not have found in your online research. Talk with a financial advisor about your options, as there may be revenue streams you haven’t thought of. Consider looking for a career consultant who has helped others with their transitions.
The more information you have about the reality of transitioning into a new career path, the better equipped you will be to handle whatever hurdles stand in the way.