Financial Planning for Career Changers

As you look for a new career, the role money plays in your life is probably your biggest concern. The longer you teach, the more money you’re making, which means that you may need a new career that will pay you close to what you’re already making.  Some teachers are able to transition to new careers and earn close to what they made teaching, but pay cuts are more likely, especially in our still-recovering economy.

When I sit down and think of topics for this blog, I find myself thinking more about what I should have done than what I actually did. If I could do it over, I would have been a lot more prudent about finances. I think I didn't really believe that I’d be able to quit, and as a result I let myself continue to live the way I had been and didn't tighten my belt as much as I should have.

You may already have a good financial strategy in place, but if not, here are some tips, free resources and book suggestions.

Books:

·         Lots of people I know rave about Dave Ramsey. His book The Total Money Makeover was updated last year. There is also a workbook, available for Kindle and in paperback. I am partial to workbooks, especially since budgets and financial planning involve lots of writing.

·         The first money book I ever purchased was Suze Orman’s The 9 Steps to Financial Freedom.  Admittedly I could use a refresher but I really enjoyed Orman’s style of writing and her approach.

·         Searching for “budgeting” on Amazon will bring you a ton of results. You may even come across one or two that’s being promoted for free or .99. If you are looking for something comprehensive to help you manage your money as you look for a new career, you may find something on Amazon that works for your unique situation.

Web Resources:

·         Mint.com: I read about Mint.com back when it was new, and was going to sign up. But I balked because they wanted bank account numbers, and didn’t bother. Since then I’ve heard several people rave about it, and I figure if it wasn’t safe they’d have been exposed by now, so I just signed up again. Managing money when I had a regular check; now that I freelance and get paid irregularly, it’s even harder and I am hoping the tools on Mint.com are helpful.

·         I wish I’d found FeedThePig.org sooner. The site, which is sponsored by the American Institute of CPAs and The Advertising Council, has a menu of financial goals. Changing careers is one of their choices, and you can add up to two additional goals, including ‘Plan for Retirement,’ ‘Start a Family,’ and ‘Pay Off Debt.’ I am also going to look into this site, since I will not a get a full pension and I’ve done little to add to my retirement savings since making the leap into freelancing.

My next post will talk more about finances, planning, and saving tips.