There are several reasons why you might be considering a change of career. Perhaps you’re just no longer passionate about the work that you’ve been doing or have finally found a career idea that you know is the right choice for you. Maybe you’ve been working in a certain job out of convenience and have decided that it’s finally time to pursue the career of your dreams. Whatever your reasons, changing your career can be a tricky time in terms of finances, particularly if you need to study for a new qualification or gain relevant work experience to make the switch. We’ve put together some top tips for managing your finances throughout a career change.
Tip #1. Figure Out Your Future Earnings:
By now, you’ve probably got a particular future career in mind. Understanding how much you can expect to be paid once you’ve successfully switched careers can make it easier for you to budget in the future and make long-term financial plans. You can use Salary Site to search for wage information on a huge range of career fields, from healthcare to military or government work. Whether you’re expecting to find work quickly or have some work to do beforehand, knowing what to expect from your new salary is essential.
Tip #2. Stash Some Savings:
Many people who change careers will find themselves in an ‘in-between’ period where they’re not currently earning an income. Unless you’re lucky enough to be able to start in your new job as soon as you’ve worked your notice period at your current one, you’ll need to be prepared for at least a couple of weeks with no wages coming in. Bear in mind that in some cases, a difference in pay schedules between positions can often leave you waiting longer for your next paycheck. Putting away some savings before changing careers will give you a financial safety net, easing your stress during this time.
Tip #3. Budget Wisely:
The last thing that you want is to find yourself in financial difficulty right in the middle of changing careers, so ensure that you budget wisely for the whole process. If you’re taking some time off work or cutting down your hours in order to commit to pursuing a qualification or experience to help you land your future career, then it’s important to be ready to tighten your purse strings. Don’t forget to factor in the cost of self-improvement for your career; for example, tuition fees or the cost of getting to and from classes or a work experience opportunity.
Tip #4. Consider Any Extra Costs:
Lastly, consider any extra costs that you will incur as a result of changing career. For example, will your new position require you to purchase a new work wardrobe? If it’s located further away, have you factored in any extra travel costs? Will you be required to purchase any new equipment, such as technology items, or furnishings for a home office? Make a list of any potential expenses to avoid any nasty surprises.
Don’t let financial worries stress you out when changing career!