Career transitioning: Make sure you have a financial cushion
9th July 2008
Given that men and women in today's workforce change careers an average of 2-4 times over the course of their working lives, the statistics appear to imply that the probability of breaking from one's current career path is as high as a marriage dissolving, if not more. In both cases, it is easy to see that one must be financially prepared to weather the loss of income or loss of financial support from a partner. If you are considering changing careers, it is advisable to have cash reserves of anywhere from 6-8 months. This recommended time frame only increases as one is considering acquiring any needed education before embarking on the process of looking for a new job in their new career, or if one is considering opening up their own business. For the latter, experts advise having a cash cushion of at least 2 years. In addition to cash reserves, take stock of your insurance coverage. For health insurance you may look into extending your coverage with COBRA for example. In addition, pay attention to the status of your retirement savings plan with your employer. If you are on the cusp of having plans vest then you actually may want to consider delaying jumping ship. And even after you have left, consider rolling over your plans so that you can keep tabs on them. As with any gradual changes in life, planning goes a long way. So with career transitioning, be prepared well in advance with your finances so that you can concentrate on making yourself happy in your eventual new position and career path.
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Jobs Related Posts
Email This Post
Print This Post