Considering the Cost of a Career Change

Considering the Cost of a Career Change

Career Counseling December 16, 2019

Considering the Cost of a Career Change

What Does a Career Switch Cost?

You’ve been thinking about a career change for a long time. You’re bored with your job, and you’re not progressing at the office. You’ve considered your career options. Frankly, you’ve wanted to do a particular type of work since you were 20, but it just wasn’t in the cards.

​Perhaps this is the right time for a career change. Are you financially prepared to switch?

Key Financial Factors Before Pursuing Your Dream Job

Before you invest in your dream job, it’s crucial to understand the financial implications of a major career shift. From budgeting for training to evaluating long-term earning potential, taking the time to compare costs and plan your transition will help you make informed decisions that support both your goals and your wallet. 

Ponder these points before you go after the job of your dreams.

1. What You Don’t Like

 What don't you like about your current job? It’s important to clarify why you’re unsatisfied with your job.

• For example, maybe the office moved and your commute has doubled. Or you got a new boss who doesn’t seem competent. Perhaps the company outlawed overtime or changed your job description to add work for you. Be frank about why you don’t like your job right now.
• This step must be done first, as it will reveal the true reason(s) you want to quit. Plus, you might realize the issues frustrating you are actually fixable.

2. Training and Education

Will you need training or education for your new career, and how much will it cost? What do you need to know to be successful in the work? How will you obtain the knowledge or skills? It might take some time and money, so it’s wise to make an achievable plan.

3. Financial Backup

Do you have money saved to help you through the transition? If you’ll require some training or time to hone skills, you’ll be working on those things and not bringing home the bacon. Therefore, you’ll need some cash stashed for living costs.
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If you’ve established a healthy pattern of saving over the years, you can fall back on it. Still, you’ll want to figure out how long you’ll be out of commission in terms of earning to estimate how long you’ll be living on savings.

4. Do Your Research Upfront

Before you leave your current position, do your homework. Find out what people earn who do the work you desire. Will you experience a pay reduction?
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• Access online sources to determine the average salaries of people in your dream career. Can you live comfortably on the salary? What are the chances your earnings will grow over the years?
• Try to find someone who does the work now and arrange to sit down with them to ask some questions about their career. In sum, take special care to gather the data you need first about your dream career, before quitting your current job and diving into the unknown.

5. Consider Health Insurance Costs

What will switching careers mean in terms of your health insurance? As you know, healthcare is expensive. Therefore, consider what will change about your health insurance if you switch jobs.

• Is your healthcare insurance now connected with your job? How much do you pay for it? What will it cost when you switch careers? Your health insurance is a big-ticket item, particularly if you’re also covering your spouse and children.
• Definitely have a plan on how you’ll handle health insurance should you decide to walk away from your current job.

6. Save Your Money

Is it possible to start saving big now? In the event you’re pondering a job change, you can expect to experience some personal and financial upheaval if you decide to switch careers. It makes sense to start saving extra money now to pad your emergency fund.

You might not be able to anticipate every single financial demand that will occur because of switching careers, so any extra funds you save will protect you and your family.

Final Thought

If you consider all these points when thinking about making a career change, you’ll be as financially prepared as you can once you decide to leap into an exciting, new job.

Source: https://www.market-connections.net/blog/considering-the-cost-of-a-career-change

About the Author

Mandy Fard is a Certified Professional Resume Writer (CPRW, CMRW) and Recruiter with decades of experience in assisting job seekers, working directly with employers in multiple industries, and writing proven-effective resumes.
 
Feel free to connect with Mandy Fard on LinkedIn: https://www.linkedin.com/in/mandyfard/
 
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