Changing career can be one of the most satisfying things you’ll ever do. Reinventing yourself and seeking new beginnings and new challenges is exciting, energising – and perhaps even a little scary.
Few people who change careers do so without it affecting their financial situation, yet in the excitement of planning a new start, it can be easy to forget some of the financial implications.
Changing career – as opposed to just switching employers – often involves a reduction in income, either temporarily (for example while retraining) or permanently, if the new career is less well paid. The latter is increasingly common nowadays as many career changers are abandoning high-paid corporate roles for self-employment or lower-paid work in industries they see as more personally fulfilling, or that accompany a complete lifestyle change.
There are many financial ramifications of changing career, and planning and managing them should form part of an overall career change plan.