Contemplating a Career Change?
/
While this is an unofficial statistic, I would estimate that about half of the people who come to us for financial planning are not happy in their current job. A study by Indeed shows that I am not far off - about 65% of people are thinking about changing careers. Whether you are looking for more flexibility, better pay, or just a more satisfying way to spend 40 hours a week, here are some things to consider before taking the plunge.
Start with "why."
Be honest with yourself about why you are contemplating the change. Did you recently get overlooked for a promotion? Is there a new co-worker that you don’t get along with? If the urge to flee is due to something that is temporary, consider sticking it out for another 6 months to see if conditions improve. You have options besides changing careers, such as changing departments or companies.
Confirm a career change is what you want.
If you are certain that a career change is in order, start volunteering, working part time, or even shadowing someone to get an idea of what your day would be like in the new career. I have had a client do this and decide she didn't want to change her career after all. Instead, she increased her savings and created a financial plan to retire early. But sometimes the grass is greener and gaining experience is the only way you can be sure.
Research the time and money to change careers.
Price re-education and estimate how long it will take for you to start earning money. This is the most overlooked step. People are eager to research average salaries for a new career, but a lot needs to happen between now and then. For example, perhaps you need to go back to school or do an internship for 6 months earning very little money. Document a detailed transition map to understand the time and costs associated with reaching your goal. Be realistic and conservative, such as including the cost for babysitters if you will be attending school at nights or on weekends.
Begin networking and building relationships.
While living in Pensacola, Florida with my husband over a decade ago, I decided to make a career change to become a financial planner. I researched the CFP® designation and contacted every CFP® professional in Pensacola, asking if I could meet with or shadow them. Only one person responded, but that is all you need. He became a mentor to me, sending me books to read and helping shape my path in the field - something I am grateful for to this day.
Start building a transition fund.
It is unlikely that you will go without any gap in earnings unless you do all the training for the new job at night and are able to land another job before quitting. Start saving and leave the money in a liquid vehicle so you can access it when needed. Besides money for basic living expenses, assess whether your cars are in good shape and if your house needs any major upgrades. Check out more tips on what to do before leaving your job.
As with everything, you can move forward with or without a plan in place. By having a plan, you simply increase your probability of success. Good luck and schedule a call with a virtual CFP® professional if you want help getting your finances in order during this challenging time.
Originally posted 3/28/2013.
Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.
Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.