iQuanti: At any age, a career shift can be a daunting feat, especially if you have a spouse or family that depends on you. Career shifts often come with elements of financial instability and uncertainty, but there are ways you can plan ahead to mitigate those issues.
The better you can prepare yourself by building up your savings, keeping your family covered with life insurance, and buying yourself time to successfully transition, the easier the adjustment will likely be.
1. Buy yourself ample time
Finding a job can be a full-time job, especially if you need to build a portfolio, take classes, or gain certifications for your new career.
In order to financially support yourself through this, you'll want to make sure you have your expenses covered for several months. Even if you can depend on your spouse's income, it will be good to have extra savings to help take some pressure off of them while you transition into your new career.
It may help to set a very specific savings goal for yourself so that you can plan for how long you want your transition period to last. If you think you might need three months to land that new job, take some pressure off yourself by saving up for more time than you think you need. That way you have extra flexibility in terms of meeting your goals--and if you are able to achieve them faster, you'll have extra savings to use for a celebration.
2. Continue protecting the financial value you provide for your family
One of the ways to calculate how much life insurance you need is to multiply your income by 10, but having no income during a transition period doesn't mean you no longer need life insurance.
A life insurance policy is designed to create a financial safety net for your spouse or family in case you pass away and can no longer provide for them. The size of the safety net you'd like to have is ultimately up to you, and it doesn't have to be based on your income. That said, you'll want to make sure your spouse and/or family are taken care of in case something happens to you.
You may start your new career with less income than you were bringing in before, but it's still a good idea to make sure your family has sufficient coverage no matter what stage of life you're in.
There are different types of life insurance coverage that you can purchase to satisfy this need, and depending on your circumstances it may make sense to change policies, or to stay on the one you have. A financial advisor can best help you weigh your options.
3. Keep a foot in the door of your old career
As much as you prepare yourself for success and following through with the transition, you always want to keep your options open in case you change your mind. If you ever want to return to your old career, it can't hurt to leave on good terms so that they'll have you back.
The bottom line
It's never too late for a career shift as long as you prepare yourself financially. When you deploy the right safety nets, you can spread your wings and chase your dreams with the peace of mind that you can take your family along on this journey with you safely.
Press Release Service by Newswire.com
Original Source: 3 Ways to Financially Prepare for a Career Shift in Your 30s
