You are considering changing careers.
What are some financial considerations you need to be making?
Oftentimes, clients come to me and ask, “What do I need to watch out for when I’m considering completely upending my life by quitting this job and starting something new?”
I actually did that myself, so I can really relate to those quandaries and to what’s going on in your own head when you’re thinking about that. It can be really scary. But when you’re changing careers, one of the things that you really need to be asking yourself is - Why are you changing it? Is it for a different lifestyle? Is it for money? Is it because you want to live in a different place? It could be so many different reasons, but you’ve already processed that, you’ve already made the decision to, probably, make that career change. So, when we look at that for my clients, we want to look at how it is going to affect their overall financial picture in the long run and in the short run.
What do we need to do? Do we need to save up a little bit more for this next year or two, in case you’re going to take a pay cut, or is this career going to set you back for your work benefits? I know work benefits are a huge part of why a lot of people even stay employed in a certain job that they may not even like, because it might have really good health insurance, and they may not be able to get that health insurance somewhere else. Before you pull that trigger, you always want to make sure to look at all the benefits packages where you are, where you might be going, and whether it makes sense for you and for your family in the long run.
Those are the big financial considerations that I want to look at before somebody changes their career.