Are you thinking of making a career change? It’s a big decision, especially if you have a family to consider. Whether you’ve been thinking about changing careers for a while or just recently, there are many aspects to consider.
Pursuing a new career can affect every part of your life, not just your finances. Even if the new job you’re thinking about will pay better, there are other things to consider, including perks, benefits, and personal fulfillment.
We know reevaluating your career can be intense, and it’s easy to feel stressed or overwhelmed. Use this list of questions to guide your thinking and engage your partner or spouse in a thoughtful conversation about your potential career change.
Question #1: Do You Want to Work From Home?
Back in 2020, COVID-19 lockdowns gave people in many industries the chance to learn what working from home is like. And many people realized it was the ideal situation for them. Surveys show that many employees want to continue working from home completely or commit to no more than a day or two in the office every week.
By eliminating the commute, working from home gives you more freedom for family time and hobbies. It also has financial benefits; you don’t need to spend as much on transportation, work attire, or eating lunch out.
Some employers are embracing the remote work concept as well. Companies that allow employees to work from home full- or part-time can save a significant amount of money on office space. Additionally, allowing flexibility can help them recruit in a job market that favors employees. As technology continues to advance, there may be even more opportunities to work from home (or anywhere outside a traditional office).
Of course, working from home isn’t possible in some industries. For example, surgeons still need to work in hospitals, and many government employees and contractors in the intelligence industry aren’t allowed to work outside of a secure space. But if you enjoy the work-from-home lifestyle, it’s worth considering a career that’s compatible with remote work.
Question #2: Can You Handle Some Temporary Income Fluctuation?
Changing careers is about more than just finding a new job. You may need to obtain some new certifications or even a different degree. If paying cash for college or professional development courses isn’t in the cards, you might have to think about student loans.
Once you have the credentials you need for your new career, you can start your job search. Hopefully, you’ll be able to continue at your current employer until you have a new job offer, but it’s wise to have an emergency fund in place just in case. Don’t forget that you may have to settle for a slightly lower salary if you are moving from a higher position in your current field to a lower-level job in your new industry.
If you can rely on your savings account or your partner’s income to cover the difference for a while, that’s ideal. Either way, thoughtful preparation, communication, and budgeting can reduce the effects of a career change on your income.
Question #3: Do the Potential Benefits Actually Benefit You?
Most employers offer a benefits package in addition to a salary. Some of the most common benefits are health insurance, paid time off, and retirement savings, such as a 401(k).
Benefits packages may include pension plans and stocks or other investments. Some cutting-edge companies provide unique perks such as transportation reimbursement, on-site yoga classes, vacation stipends, and pet-friendly offices.
It can be easy to get distracted by unusual perks, such as free food or amazing teambuilding retreats. But it’s essential to consider whether the benefits would actually be valuable to you personally.
For example, fertility assistance benefits may not be meaningful to you if you and your partner don’t want to have children. But if you’re passionate about giving back to your community, you may enjoy working for a company that offers paid days off for volunteering.
Question #4: What About the Happiness Factor?
You want a job that pays enough to support your chosen lifestyle, but financial rewards aren’t everything. Personal fulfillment and happiness are key aspects of a career too. In fact, one of the reasons you may be considering a career change is that you don’t get much joy or satisfaction from your current job.
If you think a career change would boost your happiness and fulfillment, that’s a crucial consideration. Having a job that inspires you and protects your mental health is priceless. If your current job is harming your mental health, you might decide that changing to a new career is worth all the time, energy, and money required.
And remember, there’s nothing wrong with changing careers because you want to make more money. Pursuing a higher salary can be essential if you are thinking about the costs of raising children or trying to retire early. If your new job does come with a substantial pay hike, make sure to consider all the potential financial pitfalls, like higher tax brackets and “lifestyle creep,” so you can manage your new financial situation well.
Are You Ready to Take the Leap Into a New Career?
Changing careers is a big step, but with some good planning, it can improve your daily life, financial security, and personal fulfillment. Good communication is vital to make sure you and your partner understand the potential financial benefits and challenges that come with a career change.
If you’re not confident you understand all the potential financial consequences of a career change, we’ve got a resource for you. Our Career Change Calculator walks you through all the steps to analyze your finances and determine whether you can afford to change careers right now. Download your free Career Change Calculator now!