Have you been thinking about changing careers and starting your own business, but is the financial side of this holding you back? This makes sense, you need money to pay for the roof over your head, and the food that you put in your belly. A career change may mean a pay cut, and this can be a reason to not take the leap. On the other hand, if a new career would make your life more fulfilling, and joyful, wouldn’t it be worth it? Luckily, there are a couple of things that you can do to make the financial part of a career change doable.
That is why I’m sharing the 7 financial steps that you can consider in episode #20 from the Meant For Miracles Podcast. You can listen to the episode over here:
Don’t want to listen? Then read this blog:
The Financial Part of A Career Change: 6 things to consider.
1. Do the numbers
Before you quit your job, or even consider making a career change, you first need to know your numbers. How much money do you monthly spend? How much do you really need? Are there some things that you can arrange differently or cut back from?
If not going to Starbucks every day, would mean that making a career change is doable, then it might be worth it. But before you can get an insight like that, you first need to know what your financial situation is to being with.
2. Save for the change
If you want to quit your job, you may want to save some money before you do this. That’s why knowing your numbers is also helpful, because you will then know how much money you need to have saved, before you can quit your job.
Ask yourself how much time you want to give yourself to make the transition. 3 months, 6 months, 12 or 18? And if you would be without an income for that amount of time, how much money do you need to have saved?
Once you know this (and have this saved up) the door is open to walking into your boss’ office and quitting.
Having money saved up, can also help if you’d go for one of the upcoming steps.
3. Get a temporary job
Depending on your circumstances, it may be smart to get a temporary job with which you replace your current job. This can especially be a smart move if your current job is sucking the life out of you.
Instead of waiting for your new business to take off before you can make the switch, you could temporarily do something else.
When I first decided to quit my job as a lawyer, I started teaching yoga and sport classes so that I would still have a bit of an income. This transition gave me the time, headspace, and financial stability to work on my business. I had more time compared to if I had stayed in my 9-5, and I was still making enough to get by.
As said, if your current working situation is making you unhappy, really consider this option. It would help you to heal on the one hand, and it would give you the opportunity to set up your business on the other.
4. Go part-time
A great way to overcome the financial challenge of a career change is by working part-time in your current job. During the days off that you get in return, you can work on growing your business. The days that you’re still in your job, can provide the income that you need to get by.
Going part-time will mean that you will get a pay cut, but maybe this is okay. And maybe this is something that you can save for before you make this transition (see point 2).
5. Already switch to another job in the same field
This point ties into what I mentioned under point 3: if you’re really unhappy in your current job, my advice is to make a change NOW. You can either switch to a temporary job, or first find a new job in the same field.
If you’re staying in a toxic work environment just for the money, your sanity will suffer. And this will may it much harder to set up your business.
So instead of waiting for your business to pick up, apply for a new job in the same field. Once you’ve settled there, you can continue working on setting up your business on the side. You will have a similar pay check AND your peace. Some might call this a win-win!
6. Quit once you’re able to go full time (so side hustle)
The financially safest way to make a transition into your business, once it’s fully profitable. This will mean that you need to build your business alongside working in your full-time job. This can be challenging, but it is doable.
When you pick this option, there are little to no risks financially, but it may be that it takes longer before you can make the transition.
7. Talk to your partner (if applicable)
I have had many clients who ended up quitting their job without any saving. This is because they ended up talking to their partners, and they both decided that she could quit her job without replacing her income for now.
You’d be surprised how many partners prefer the sanity of their loved one over an income. If you want to start your business, and you want more time for this, talk to your partner. You never know, if they might be able to meet you half way financially, so that you can make your career change faster.
Don’t do it alone
Getting help from a coach will mean that you can make your career change faster. Whether you go part-time, side hustle or save, having a coach will help you get to where you want to be faster. Instead of you reinventing the wheel, you will know exactly what steps you need to take to get from where you are, to where you want to be.
If you want my help, please reach out. In my uncover your Soul Purpose program, I help you to uncover your Soul Purpose and turn that into a profitable and fulfilling business. Check out this page to see how you can work with me.