Can You Afford to Switch Careers?

Take Charge America Has 7 Questions You Need to Ask Yourself before Making the Leap

PHOENIX, Ariz. (June 23, 2006)... Peering outside your cubicle, it’s often hard to tell if the grass is greener on the other side. You may be bored, in need of a fresh start or you’ve outgrown your job. They’re all valid reasons to switch careers, but before you take action, take a hard look at what it takes to turn that daydream into reality. Mike Sullivan, director of education of Take Charge America, a non-profit credit counseling agency, says if you’re one of the growing numbers of Americans who are thinking of making a career change to improve your lifestyle, you need to first assess how it will affect other aspects of your life.

“Switching careers can have both positive and negative repercussions on your family, lifestyle and financial state,” he said. “If you are ready to make the leap it’s important to have a plan and weigh the risks.”

Statistics show that the average American will change careers at least three times during their working life and change jobs within the same career even more frequently. Sullivan notes that not all of those workers are moving up on the pay scale.

“If you’re looking for a different atmosphere, better hours or a flexible schedule, you may have to take a pay cut, and you will need to make adjustments accordingly,” he said. “Following your inward calling may take some sacrifice on the home front.”

Sullivan has seven questions workers need to ask themselves before switching careers:

• How risk-tolerant are you? – Security is a comforting feeling. Abandoning that sense of security is a big risk. Does the unknown make you queasy or exhilarated? Accepting a job offer doesn’t mean you are home free. If the job market shifts, are you comfortable at the bottom on the totem pole?
• What’s your background? – Evaluate whether your inward calling is feasible. If you have an engineering background, can you easily make the transition to English teacher? You may be a fabulous writer, but without a qualified resume you may be hard pressed to find an employer to hire on faith. Start gathering the needed background while you are at your current position if possible. Test the waters by going back to school, volunteering or finding freelance work.
• Have you done your research? – Know exactly what you are getting into. Talk with people in your desired career field about their current positions and lifestyles. Examine hiring trends in your local job market and field. Find out what background is necessary, who is hiring and the potential growth in that field. If you’re moving to another state, how much will your take-home pay differ from where you are now? Log onto www.paycheckcity.com to find out. Just enter the state, salary and the number of allowances you claim into their free calculators.
• How’s your credit? – If you’re neck high in bills, now may not be the time to downsize your career. Make it a priority to pay off high-interest credit card debt so you are in a position to save extra cash. Do not downsize if it requires you to take out an extra credit line to live off of. The financial heartache is not worth it in the long run. Consult a financial planner or credit counselor to create a workable financial solution. Visit www.takechargeamerica.org for more information.
• Can you afford to downsize? – Switching careers may force you to say goodbye to certain luxuries. This could mean eating in more often, spending less on clothes, coupon clipping or even downsizing your car or home.
• Do you have a backup plan? – Have you examined the what-ifs? What if your new company downsizes, health problems pop up, or your spouse gets laid off? Talk with your family about the potential “what-ifs” and come up with a plan to take care of them.
• Are you good with change? – Change is good, right? If you’re leaving a 60-hour work week behind for a part-time job you may come across unexpected consequences like boredom or a sense of not feeling needed. Factor in adjustment time. You can have the lifestyle you’ve always dreamed of by evaluating potential fallout and fixing it.

About Take Charge America
Founded in 1987, Take Charge America, Inc. is a non-profit organization headquartered in Phoenix, Arizona. TCA offers a variety of services including financial education, credit counseling, and debt management. To learn more about TCA or its programs please call 1-800-823-7396 or visit www.takechargeamerica.org.