How to Determine if You Can Afford a Career Change

A career change can be an invigorating and rewarding experience, if you can identify and plan for some of the obvious and hidden costs associated with the change.

Difficulty: Moderate

Instructions

Things You'll Need:

• Financial Calculator
• Career Counseling
• Personal Organizers
• Personal Financial Software

1. Identify what other career path you would like to embark on.

2. Determine what salary you can expect with your level of education, training and experience.

3. Consider the additional costs of a new career; will your new career require training that will cost money and take time to get? How will you get to and from your new position? Will you have to commute? Will you have to pay for parking? Will a new wardrobe be required for this career?

4. Evaluate the difference in benefits. Will you have medical and dental coverage as a part of your new career? Will you have a retirement account? What will happen to your current benefits? Are they transferable?

5. Understand whether you can start working immediately or whether there will be a transition time between your new and old career. Do you have enough money to sustain yourself during that transition?

6. Realize that starting in a new career may put you lower on the totem pole in a new job than if you stayed with your current job. Does this new career provide for future advancement?

7. Create a budget for your expenses for the past six months to determine where and how your money is spent. Are there places you could tighten your belt and save money to compensate for the loss of income or benefits of a new career?

Tips & Warnings

• A career change can give you a whole new outlook on life. Make sure that whatever you do for work gives you joy and makes your life worth living.
• Plan for the unexpected. New careers are not always what we think they will be. Do you homework and make sure you are making the right decision, not just satisfying a monetary urge.

on 11/22/2005 All you learn and do in life can prepare you for a career change. I was offered a great job in a completely different field from what I was doing, but I was well-prepared because of my hobbies, interests and continuing education. All is well a year later!