Preparing For A Career Change

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Many people like to dream about making more money and doing things they love by making a career change.  According to labor surveys, the majority of people are not happy with their careers and want to change them.  As Americans, we always optimistic to think that the grass is always greener on the other side, but not very many people actually voluntarily pursue a change of career.  Why not?  Because it seems as if it is much harder because of high income and age tend to lock them into staying at their current jobs. 

For more personal satisfaction, more pay or a better balance between your work and personal life, prepare for a transition that is difficult while you seek a new job.  You may be forced to relocate and you might not make the same benefits or salary, but you will likely need to invest in education or training in order to be hired.

Don’t let these obstacles hold you back from your career goals, just be prepared for them. 

Preparing for a Career Change

Only about 40% of people in America actually plan their careers.  In fact, most people spend more time planning vacations.  It is important to be prepared when intending to change jobs or careers.  You should do the following while you continue at your present job:

1.  Live Within Your Means.  

Your personal budget and financial plan needs to be within your comfortable limits.  Restrain your impulses to only buy what you need, rather than what you want is essential in order to achieve the freedom that allows financial security.  When creating a budget, differentiate between discretionary spending and obligatory spending.  In order to be prepared for an emergency during your career change, you need to reduce your spending and save up.

2.  Assess your Deficits and Abilities.  

Evaluate your occupational weaknesses and strengths objectively- the things and tasks that you perform well or poorly.  Develop a plan to improve those abilities and skills that are non-existent or barely adequate, including education and training.  Understand your dislikes and likes, and how important they are to your current job and likely to be in your new job.

3.  Be Aware of Factors that Affect your Company, Job and Industry.  

Across the country, careers and jobs are being replaced with machines capable of doing complex and physically demanding work at a lower cost and without error.  Skills that were once unique are being performed and copied with cheap, abundant labor as a result for companies to lower costs with greater efficiency. 

4.  Improve and Maintain Your Skills.  

In the modern word, no position or person is indispensable.  Take advantage of course offerings and company training that will improve your skills and make you a more productive employee.  Take initiative and accept responsibility.  Rather than waiting for management or colleagues to pull you in, push yourself forward.

Financial Steps for Making a Career Change

1.  Negotiate a Severance Agreement.  

Severance payments are released to employees by employers, including unused sick or vacation days, payments based on months of service, continuance for a period of dental, mental and life insurance and assistance searching for a new job.  Companies who are undergoing liquidation or reorganization often pay bonuses to employees who stay until the job is completed.  Sometimes in certain cases when employment is voluntarily terminated, part time work can be available to supplement income during a search for a new job or during training.  Some payments, according to a court ruling recently, may not even be subject to taxation by FICA payroll. 

2.  Cut Your Living Expenses.  

During a transition to a new career, your income will most likely drop significantly.  It is important to eliminate or reduce discretionary expenses and evaluate fixed expenses for their necessity and value.  A person who is single only needs minimal life insurance, for example.  Younger people who do not get sick very often can choose a health insurance plan with a higher deductible.  Stop credit card payments and notify them of your current financial situation to negotiate payments that are minimal with no extra interest charges.  It is very important to stay within a reasonable budget during your career transition. 

3.  Pursue Financial Assistance.  

It is vital that you apply for unemployment benefits and insurance if you were laid off or terminated.  Seek training assistance through state and federal sources.  Apply for scholarships, grants, and student loans from the organizations or schools that provide the job training and education that you need.  Check with private and public organizations because there are hundreds of available benefits for the unemployed. 

Final Word

It can be a daunting task to make a career change for even the most prepared and confident person.  There are not certainties that you will be successful with the decision you make, but many Americans successfully change careers and jobs every year, striking new direction or starting new companies with no regrets. 

YOU can have your dream job too.  Select the career of your choice to meet your goals, then develop a plan to reach your goal.

- Erin