Published 5 Jan 2019

How You Can Change Careers Without Losing Money

by wpengine

Unfortunately it is true that when moving career paths to a new job, money can become an issue. It has been found that there are actually a few career-changing mistakes many people make that often end up impacting their personal finances. Avoiding these mistakes can help you through a smoother career transition and make that new career successful without financial consequences.

Your working life is something that is unique to every person. Whether you’re choosing to follow a dream passion or try something different, making a job change is also done for different reasons. Research has found that workers switch jobs approximately 10 to 15 times during the course of their professional working life. It is a very common thing to make a career move, but what can also be common is a lack of planning and understanding of the effort needed to make a career change successful.

It is important when you make a career move into a new field that you have patience, determination and that you are proactive in your actions. Even if you are starting a business from scratch, or completely switching industries, making sure you have an action plan and strategy planned out is extremely important not only for the short term but also the long term.

Having an Unclear Career Change Plan
Planning your career goals can become a make or break during a career switch. With no target or general direction to follow, it can become difficult for you to know which way is best for your own career path. Being indecisive with your personal finances is one thing that definitely has to be planned out. Ensuring that you organise your finances within your career goals will provide you a realistic view as to where the current position can take you, and will also make sure you are saving enough money for life expenses outside of work. If you’re unsure of your career goals and the roadmap of your new career path consider looking for a career coach or talk to people within your aspiring field.
Taking an Entry Level Job in a New Field
Whilst pursuing an entry-level job in your job search may seem like the best idea it can turn out to be a very big mistake. If you’re someone who has had a successful career in his or her current company and/or built up a network and impressive resume, don’t step down when making a career change. Make a lateral career move as you can bring transferable skills and knowledge to your new job whilst also maintaining rank within the new specific company. Aiming for a job suitable to your current position will also maintain the salary you are used to and know you can work with. Taking an entry-level job will mean a major pay cut as well as forcing you to start directly from scratch (which you’ve already done in your previous field). Having the slightly lower pay or an equal amount will allow you to have an easier career change plan and adjust to the new job easier.
Spending it All
Career coaches often have different opinions on spending money for career changers. One of the best things you can do to avoid losing money during a career transition is to set up a savings account and cut down on things that aren’t necessary. Consider stopping your unused gym membership, TV subscriptions, Netflix etc. only for a short period of time or until you’re comfortable with your new wage. If you do freelance work or are starting up your own small business you may have to splurge on payments to make your dream a success, but ensure you’re putting certain monthly payments aside in your savings account. Finding and cutting out mindless purchases can actually add up to a lot of value over time, know your priorities and utilise the extra money for when the time is right to switch careers.
Not Utilising Your Network
For years you’ve grown connections within your industry and through friends, switching careers is a time to make those networks count. Consider asking people if they know anyone in your aspiring field that could help you out, ask some friends to help you with your savings goals and your family for motivation and support. Friends and family can often be a huge factor in regards to success when making a career change, never be afraid to ask for advice and opinions on your strategy and plan for your career path.

Remember when making a career move to never sell yourself short, everyone has transferable skills and knowledge that can be utilised in a huge variety of fields. It is important that you understand the ways in which you can make you career transition successful whilst avoiding losing money.

A new career path can often take months (sometimes longer) to start seeing results and success within the industry; ensure you have a strategy that delves into your finances and that you seek advice from all types of sources to prepare yourself for the exciting journey ahead.

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