Debt Matters, News you can use toward a debt-free life.


September 2006


Working It Jumping out of a perfectly good airplane is an unatural act. Questions About Changing Careers?
Make Sure You Include These

Few things in life are more daunting than starting over in a new career. They say this about sky diving: jumping out of a perfectly good airplane is an unnatural act. The same could be said about leaving a stable job that's providing your current livelihood — even if that job is unsatisfying.

But while sky diving delivers short-lived exhilaration; the right career path can reward you for a lifetime. So, should you trade in your steady job for something you think you'd excel at or enjoy more, but comes with more risk? Only you can answer that. But we can give you a few pertinent questions to ask yourself:

Is this move realistic? The cold, hard truth is that money matters. That's not to say you should always do whatever pays you the most money. But, if you're 45 years old and have a negative net worth, making less money and taking on more risk is not a realistic option. Your financial security is in jeopardy and saving for retirement should be your biggest priority. On the other hand, if you're not in trouble financially, you can build up your savings to bolster you during your transition. If you can wait a year and would be more comfortable making the move with more money in the bank, by all means, save.

Have you been thinking about this a long time? This is a surprisingly important question. If you've been saying for years that you want to be a paramedic or open your own business, it's probably not a whim. If the idea has been with you a long time, you must really want this and desire is a big predictor of success. Furthermore, if you really want this, you are probably — perhaps even unconsciously — taking steps to make the move possible — reading about your would-be career and exploring your options, saving for it, etc.

What don't you know? If you are on the fence about a career change, it means there is something you don't know, such as: Will you earn enough money to survive? Will the business plan work? Will you enjoy this enough to make it all worthwhile? After all, if you knew your plan would work perfectly and you'd be fulfilled by the work, you'd have made the move by now. Figure out exactly what you don't know. Doing that simplifies the decision-making process. Try this example: Suppose this is the question that you don't know the answer to and therefore is causing you to hesitate: "What are the long-term prospects of this career move?" With such a specific question, you can now go ask some experts in the field about long-term trends in that industry. Once the question is more specific than "Should I make a career change?" it can more easily be answered. So, what don't you know?

Who can you talk to? Be careful where you get your advice. A worthwhile mentor won't tell you that you can't do something. Nor will they tell you that whatever you do will turn out great. When you discuss your possible move, they should be asking more questions than they are answering. Also, a good mentor will focus on specifics. Have you thought about this? The one thing I am concerned about is… And so on. Disregard vague statements like, I don't think this is a good move for you right now. You can make these conversations more valuable by asking pointed questions and presenting a plan for your mentor to critique.




In this issue
Navigating Rough Economic Seas

Two Minute Quiz

Smart Money Management

Simplifying Life

Workin' It

The Right Credit Card

Short on Cents

Past Issues






Debt Matters is a source of general information about personal finance and is not a substitute for professional financial advice. Circumstances vary from one individual to another and advice in these articles may not be right for everyone. The publisher will not be held liable for any damages incurred by following the advice found in Debt Matters.

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