WATCH NOW: Moneywise speaks with Freddie Ransome about career pivoting
It’s never too late for a career change
While the past couple years have seen an exodus of workers abandoning their jobs for better opportunities in a tight labor market, many of them may have also ended up in completely different careers.
A 2022 report from the Pew Research Center indicates that from 2019 to 2021, on average month to month, nearly half of workers who changed employers also found themselves in a new industry.
It’s a trend career coach Chelsea Jay observed increasing in popularity, especially after many workers have watched their friends and family members successfully switch their own careers.
She says plenty of more experienced workers may have originally started their careers with the sole aim of making enough income to support themselves and their families, but are now rethinking their passions and hoping to find a more fulfilling role until they hit retirement age.
“It is never too late,” says Jay, noting that she’s coached a lot of professionals who are 55 or older who wanted a different career. “I know a professional who went back to school at 60 to get their PhD and pivot their career … As long as you are still living and breathing, you can try something new.”
More: Looking for a salary boost? Quit your job
Kiss your credit card debt goodbye
Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.
Explore better ratesFinancially preparing to pivot — at any age
For many people thinking about taking a leap, their biggest reservation will be money. Ransome acknowledges that her relationship with money drastically changed when she became a freelancer.
“I was doing my little savings — like $200 every paycheck — but I was also spending,” Ransome recounts. “I wasn't super precious with money.”
She says she’s become more rigid and risk-averse with her finances, even though she now earns a higher income — because freelancing comes with less stability. But she’s since gotten a financial adviser to help her manage her income.
Most people who struggle with pivoting between careers haven’t financially prepared, says JJ Burns, a certified financial planner based in Melville, New York.
Burns says you need to set SMART goals — specific, measurable, attainable, realistic and time-bound — and then create a budget. You’ll also need to replace those lost benefits from your old job, like health, life and disability insurance.
Jay generally advises her clients to build three to six months’ of savings to help float them through the transition period.
If they’re moving into a field that comes with less security or pay, she recommends at least six months’ of savings or more. It may also be helpful to supplement your income — say, with a side hustle — or cut back on discretionary expenses, like travel.
Make the leap, but do it safely
Jay suggests “dipping your toe” first before plunging headlong into a new career. You might consider volunteering or job shadowing someone who already works in your desired field. If you don’t already have any contacts, you can find people on LinkedIn or attend industry events and conferences.
She emphasizes that it’s important to arm yourself with as much information as possible and ask the hard questions. “What do you love about this industry? What do you love about this job? What do you hate about it? What do you wish would change?”
Burns agrees, adding that you’ll need some financial backing when you’re first exploring a new career. “Don’t give up your day job.”
He says he’s seen some people simply quit and dive into a new business while job demand has been high — but you might want to rethink something so drastic in a volatile economy.
He recommends using personal and vacation days at your current job to prepare for the new one.
“So when you eventually pull the trigger, you are literally stepping into something — not having to set up something — to make that occur.”
And finally, Jay says she wouldn’t advise anyone to change their career solely for the money.
“If you're not passionate about the role, if you don't enjoy the industry, if you don't like what you're doing — the money won't matter long term.”
Kiss your credit card debt goodbye
Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.
Explore better ratesWhat to read next
- You could be the landlord of Walmart, Whole Foods and CVS (and collect fat grocery store-anchored income on a quarterly basis)
- Americans are paying nearly 40% more on home insurance compared to 12 years ago — here's how to spend less on peace of mind
- The US dollar has lost 98% of its purchasing power since 1971 — protect your retirement nest egg with this stable alternative
This 2 minute move could knock $500/year off your car insurance in 2024
OfficialCarInsurance.com lets you compare quotes from trusted brands, such as Progressive, Allstate and GEICO to make sure you're getting the best deal.
You can switch to a more affordable auto insurance option in 2 minutes by providing some information about yourself and your vehicle and choosing from their tailor-made results. Find offers as low as $29 a month.
