7 Tips to Finance a Career Change

You have decided that you are going to take the plunge and switch careers. But you are worried and anxious. Perfectly normal reaction.

You keep asking yourself “Can I really afford this?”

This is a real concern and you are right to be thinking about this, but it does not mean you have to give up hope—it is still possible to pursue your passion and not break your wallet.

BUT, you also have to think strategically, be willing to make some changes, and plan ahead.

Below are SEVEN tips to help you think how a potential career change might impact your cash flow and your finances:

1. Do your homework and know your earning potential. Let’s assume you already know the new career/field you want to enter. Then research how much you can realistically make in the first few years. You can view salary data on www.salary.com or any industry specific site that has this information available. A more accurate way might be to talk to professionals already working in your desired field, and get specific information on how much you can expect to make, both short-term and long-term.

2. Estimate your training and professional development expenses. Before you can prepare your reinvention budget, you should determine how much you are going to need to invest for training, courses, certifications etc. Do your homework and ask a lot of questions. Ask those in your target field how much they spent on training and where they received it. Research professional associations in your new field and see how much they charge for training and certificate programs.

Plan today for someday making a career change. Start your own “freedom fund” that will allow you to make a change a few years in the future. Help ensure a successful transition by banking bonuses or increasing savings now. Marcia Mantell http://boomerretirementbriefs.com/

3. Get a handle on professional association memberships. Professional associations provide ideal networking opportunities to ease your transition into a new field; be sure to include the membership costs of joining one or two associations. Also factor in the cost of attendance at an industry conference, as this can be a great way to network and build relationships with people in a potential new field.

4. Evaluate technology costs. Are there any hidden technology costs that you will need? Will you need a new computer or laptop at home? If your career change involves starting a business, the impact of these purchases and a new website could be reduced if they qualify as business expenses. Be sure to familiarize yourself with related income tax laws or consult with a good CPA.

5. Determine the impact of volunteering on your finances. Is there a way to position yourself for your career change so you can be hired more quickly? Perhaps volunteer or intern to gain valuable experience, which will help you land your job sooner? If so, how will this impact your current cash flow, if you are not getting paid?

6. Monitor your current expenses. Develop a tracking mechanism for keeping an eye on cash outlays. Of course, it is possible to cut back but you may have to make some sacrifices in the short-term to do so. And know what you will spend to invest in your new field. Build a spreadsheet or use a simple tool, but don’t ignore the facts.

7. Have a backup plan. If you have a Plan B, you’ll feel much less anxious during your career change. Work with your career advisor to develop a time line for your transition as well as a backup plan, and match that up against the financial resources you have available to fund the change. Is there sufficient wiggle room? What will you do if the transition takes longer than planned? How will you begin to generate cash?

If you would like to learn more about career change, feel free to watch this video, and others we have on Youtube: www.youtube.com/rbussin

Randi S. Bussin is founder of Aspire! Fulfilling career ambitions, a career management firm that coaches and consults to individuals and corporations on personal branding, online identity, and career development.

You can also follow us on Twitter at @aspire4success and on Facebook at Aspire4success.