The truth is, money is a big factor in our lives. Money (or financial support) is one of the most common factors that holds people back when considering a career transition. If money is the only thing that’s holding you back, think about what you can do financially to pave the way to a success career change.
Budgeting and personal financial management is more than just recording your expenses. When done right, it can help you make sure each major life decision or unexpected change in life such as buying a home, having children, or changing careers is managed strategically. Having gaps and possibly no income between jobs may seem scary, but if you plan ahead, nothing can stop you from taking steps toward your dream career!
Research The Financials of Your New Career
If you have your eyes on a specific industry or position, do your research and find out the average income levels of your future job. Use online tools such as LinkedIn, PayScale, and Glassdoor to get more industry insights. You could also talk to people in your intended field to gather additional and more accurate information about salary ranges for your future job.
If you are starting your own business or self-employment, make sure that you understand the business structure, what you need to do in advance and how long it takes to earn a living in this field before you start.
Start A Career Savings Fund
The more money you save up before making a career change, the easier and less stressful the process will be. Having money in your bank account will make you so much braver when leaving your current job and going after your dream career.
Open a new savings account that’s separate from where you normally handle your financials, preferably at a bank with higher interest rate, and start your Career Savings Fund. Set aside some extra cash, it could be your work bonuses or money from side jobs, into this account. Save up three to six months’ worth of your bare-minimum living expenses, so you have some time to get your new career started without worrying about making a living.
Make The Transition Strategically
You don’t have to quit your job all at once in order to chase your dreams. A great way to test drive your new career is to start it part-time while maintaining your current job. Switching from a full-time job to a part-time job will give you some time to scale up your new career, and also to start gaining experience by learning and practicing new skills on the side. You can also take some courses, participate in networking events, or take on a part-time job in your new field to test the waters.
It is much less stressful to try something new when you are not dependent on it for paying the bills. Your new career may not pay as much as your old job at the beginning, so make sure you still have the financial support to sustain your current lifestyle.
Put A Pause On The Luxuries
Be prepared for an income drop at the beginning of you new career. I’m not saying that you will for sure make less in your new career, be chances are your new career needs some time to take off.
Consider reducing some luxurious expenses such as designer fashion products and full body SPA sessions, and reevaluating the necessity of some fixed expenses such as premium life insurance and full car insurance coverage. Take a close look at your spending to see where you can make some cuts. Keep in mind that the sacrifices you make now are paving a way for your new meaningful career. These changes are only temporary until your new career takes off.
Create A Back-Up Plan
Don’t allow money to hold you back in life, or push you into a career you don’t like. Once you have a Career Savings Fund, a career change strategy, and a living-expense savings plan, you’re almost ready to go!
Nonetheless, you’ll need a back-up plan in case your new career development doesn’t go as expected. Think of solutions for when worst-case scenarios come up and you end up in tight financial situations. Do you have something to fall back on? Can you move back in with friends or family if needed? Can your parents take care of your children if things didn’t go well? Look at different possibilities of your career change, and find solutions to each possible problem. Remember, your back-up plan is only temporary, don’t be let down by difficult situations because short-term sacrifice will lead to better long-term gains.
As the largest career college in Canada with 50 campuses across the country, Academy of Learning College attributes the growth in our success to identifying the gap between the formal education available and the realities of the working world. We fulfill the needs of learners by developing customized programs for each student, while meeting the requirements for convenient and effective training at an affordable cost. Browse our program list by province and find the best program that suits your needs!