If you’re dreaming of a different role or a new purpose in life, you shouldn’t have to stay stuck because of money. With a bit of careful planning and the wind in your sails, you can take control of your financial situation and make your career change a reality.
Start by getting clear about where you currently stand financially. Look at your credit card or loan balances and any savings and investments you have. This isn’t just about knowing what you earn and spend each month – it’s about seeing what you have to fall back on if things go sideways.
In preparation for a lower or unsteady income, identify unnecessary expenses you can cut back on, like unused subscriptions or dining out too often. This clarity should reveal areas where you can save, giving you more flexibility to support your career shift.
Try to determine how long you realistically have before finances become an issue.
Now you know where you’re starting from, create a realistic budget to help you manage the transition phase. Consider the essentials like rent, food shopping, utilities and transport, and don’t forget to factor in unexpected costs.
If your new career involves retraining or earning qualifications, you may need to include course fees or study materials. Simplify the money element by setting up a dedicated account for your transition fund. From there, you can gradually save or redirect any money you free up.
Even modest contributions add up over time. Be consistent with them and stick to your budget as closely as possible – it’s a foundation for your future.
If you have outstanding debts, don’t ignore them during this process. Focus on clearing high-interest debts, like personal loans, to reduce long-term costs.
You don’t have to clear all debts before changing careers, but make sure you’re managing them responsibly. It could be worth contacting your creditors to explore options like reduced interest rates or adjusted repayment plans, particularly if your income will dip temporarily.
Keep an eye on your credit score, too. A good credit report could help you secure financing later if needed, such as for additional training or starting a business. A credit card for bad credit could help if you’re already worried about yours. It’s never too late to start preparing for the future!
You don’t have to shoulder the financial burden of a career change on your own. Look into grants, scholarships or government programs designed to support career retraining.
Your local council or job centre may also offer funding options for skills development. Even family and friends might be willing to invest in your future if you present a solid plan.
Research all available options because these resources could significantly reduce the pressure on your personal savings.
