When contemplating a career change, why not start with an assessment of your financial circumstances to determine what might be possible?
Let’s start with a financial plan containing:
An emergency fund to cover unexpected expenses without having to borrow money or charge them on a credit card.
A detailed understanding of your basic living expenses – a budget.
A timeline of how you expect to get from where you are to where you want to go.
Next define some goals
Define salary goals independent of any thinking you may have already done about careers:
What is your minimum acceptable salary amount? Note that if you have a spouse already meeting basic expenses, volunteering may be a viable option for you not to be quickly dismissed. I know people who started as volunteers who turned into paid employees.
What is your desired level of income, your “feel good about yourself” income, the amount that would give you a satisfying feeling that you are making appropriate use of your talents and skills?
What ideal amount of income would result in your thinking about what to do with the “excess” dollars?
Now ask yourself whether you can live with an important commitment: retirement savings (401(k) plans, traditional IRAs, Roth IRAs) are off limits for early withdrawals and borrowing. Vow never to use your retirement savings for anything other than retirement.
Now broaden your perspective with a few important questions:
How willing are you to trade time for money? Which is more important to you?
What financial impact, if any, would there be on your family?
How would additional education or training be financed?
Do you understand the tax implications on your minimum, desired, and ideal salary levels?
Are you allowing for additional future changes in direction and circumstances – do you have a Plan B?
Stay focused on the basics
I know this is all basic stuff. But it’s surprisingly easy to lose sight of basics. It’s easy to become unduly influenced by dollar signs and to make decisions solely on that basis. It’s also easy to succumb to the “this is what I ought to do” mode of thinking. What do you really want to do?
I’m on my third career, and I can state unequivocally that jobs where you can clearly see that you are making positive contributions to the lives of others are ultimately the most rewarding ones.
So, start with a written financial picture of what is possible, learn from your past but don’t be unduly influenced or limited by it, and be willing to make future changes as needed.
Good luck and best wishes!