Preparing for a Career Change

Preparing for a Career Change Do you find yourself not loving what you do anymore? Are you considering pursuing a different passion? You’re not alone. As you age, interests change. This leads many to contemplate changing careers, but don’t due to the financial risks. Fortunately, there are several tips to changing careers at any age such as creating a budget, staying aware of debt, and timing your transition.   When seriously contemplating a career change, it’s crucial to refine your general budget. Entering a new industry can be financially worrisome for some people because they generally have to start entry-level. This means a decrease in income. However, many people will alter their lifestyles to pursue a passion. Refine your budget by identifying places to save. Keep in mind the essentials like rent and groceries will predominantly remain the same. Sacrificing entertainment and other unnecessary expenses tend to go first.   Before making a career change, consider paying off high-interest debt. Some people’s debt-to-income ratio changes when switching to a lower paying job, so strategically prioritizing high-interest debt while in a higher paying role can be more beneficial. Credit.com recommends reducing debt to 25% of your estimated income before vacating your current career.   Remaining strategic with debt reveals the third aspect of preparing for a career change: timing. Define what major goals you have planned for the next five years. If buying a home or starting a family comes to mind, reevaluate if making an industry change is financially smart for you. Avoid taking on too much financial risk at once. It could be more wise to spread major life events out every few years.   Spend time researching the industry you want to enter and talk with a financial advisor. Changing careers is possible and can lead to an increased work satisfaction, but sternly analyze your financial situation before making the switch! Please include attribution to Credit.com with this graphic.