Do you want to change your job? Many Americans, dissatisfied with their current working situation, are making the choice to change direction midlife. However, they may also be worried about the potential drain on their income and financial stability. How can you successfully pivot your working life while protecting the wealth you've accumulated? Here are a few important tips.
1. Consider All Options
Before you pack up and quit your job, consider the least disruptive options to achieve your goal. Finding a new position within your own company or its competitors, for example, might result in more interesting work without sacrificing too much income. Changing industries, likewise, might give you a chance to use existing skills and experience but in a new environment. However, going freelance or changing jobs entirely is much more likely to disrupt your earning power.
2. Meet With a Financial Planner
Involve a financial professional in the planning stages. Remember, financial planners and wealth managers are there to support your financial goals, even as these change throughout your life. If your goal has now become to find something that fulfills you more, they will work with you to find the best way to prepare your finances for it. An impartial and independent eye can help you make better decisions.
3. Make Financial Adjustments Now
If you haven't yet pulled the trigger on a job change, start making advance plans now by adjusting your monthly budget. Cut down on expenses, increase savings and retirement contributions, and develop new spending habits. By doing these now, you make the adjustment less onerous and give yourself more flexibility in earning power in the near future.
4. Craft a Timeline
One way to avoid making rash moves that cause financial upset is to design a game plan for your career change. This includes not only defining your goals and setting minimum requirements but also crafting a timeline. Can you take a lower-paying job with the expectation that income will rise within one, two, or five years? How long can you absorb lower retirement contributions? And how long do you want to spend finding a new situation?
Where to Start
Could you use help applying any of these career change preparatory tips? Start by meeting with a financial planner who specializes in wealth management today. With their experience and your vision, you're sure to find the best way to achieve both financial and personal success in your new career path.