Are you thinking about changing careers? If so, have you done some financial planning to prepare for this change? In our self-help obsessed culture, it can be easy to get excited about changing your life but more difficult to take the time to research and plan out a career switch.
While money certainly isn’t everything, a number of career switchers may find that they need to invest a lot of money into getting a job in a new field. Peace of mind is priceless, so after some initial adjustments, people who change careers may find that they are quite happy with their decision. They can, however, make the transition much smoother if they have a plan in place for managing their money.
In “Can You Afford a Career Change?” Yahoo! Finance recommends that you spend time “crunching real numbers starting with your projected salary.” Yahoo! Finance also suggests you consider-
Training: Before you start looking at projected earnings, you will need to figure out if your current skills can transfer or if you need additional training or a degree. How much are you willing to invest in this new career before you can find work? Will it be worth it to spend money on school and risk a possible pay cut to work in a different field? If your current job provides tuition reimbursement, do they stipulate that you remain with the organization for a specified amount of time afterwards?
Location: Are there jobs in the field you want to work in near where you live now? If not, you may need to factor in relocation costs as you are planning a budget for your career change.
Retirement: How will changing careers affect your retirement plans? Will you need to spend a few years at a lower salary after you make the switch? A Fee-Only financial planner can help you plan so that you don’t jeopardize your retirement savings.
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Disclaimer: Claire does not offer any financial advice on this website. All information provided on the site or in this blog is for educational purposes only. Contact Claire or your financial advisor for specific advice that will fit your situation.