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Before making a Career Change Consider the Financial Impact

Are you considering a career change? If you are ready for something new, you probably have many reasons for feeling this way. While you may be tempted to make an immediate change, it is important to take a step back and assess your financial situation before doing so.

It may not be true for everybody who makes a career change, but most find that this impacts their finances in some way, shape, or form.

Before making this change, here are five ways your finances could be impacted (both good and bad):

1. The amount of money you will earn. Are you going to earn more money in your new career? Are you taking a pay cut to make the change? Only you know the answer to this question. Either way, you need to know how your finances are going to be impacted.

2. The cost of your commute. Take for example somebody who is currently able to walk to work. If you make a career change that requires you to sit in traffic every day in your car, you will find yourself paying out a lot of money for gas. Are you prepared for this additional expense?

3. Stability. Even if you have the opportunity to earn more money in a new position, consider the fact that it may not be as stable as your current job. Stability is not reason enough to stay in a career field you don’t enjoy, but it should definitely be taken into consideration before making a change.

4. Pay schedule. Money is money, no matter when you are paid. That being said, you may have to get used to a new pay schedule after making a career change. For instance, you could go from being paid twice per month to once per month. You end up with the same amount of money, but it will definitely impact your financial approach, such as when you pay your bills.

5. Is there an opportunity for advancement? There is a lot to be said for a career in which you can move up the ladder, earning more money every step of the way. If you move into a “dead end” job, you may end up regretting your decision soon enough.

Before making a career change, it is imperative to consider the pros and cons of doing so from a financial perspective. By focusing on the five points above, as well as others suited to your personal situation, you can decide if making a change in the near future would be in your best interest.
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Tuesday, 14 July 2020

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