Home' Trinidad and Tobago Guardian : August 11th 2015 Contents B6
Guardian www.guardian.co.tt Tuesday, August 11, 2015
Once you have decided that you want to change
careers and you have identified what you want to do, you
may find that this reinvention could involve a temporary
cut in pay. This is a real concern and you are right to be
worried, but it does not mean you have to give up hope-
it is still possible to pursue your passion!
It might take awhile to acquire new skills and come up to
speed on a new job function and a new industry. But in time,
your salary can recover and even surpass former compensation
levels, especially if you tie your passions to your work.
Some of the questions people ask include:
• How do you live and prepare for this investment period?
• What are some of the planned and hidden costs?
• If I want to change careers in a year, what can I do now to
CASH FLOW PROJECTIONS
1. Do your research:
Let's assume you already know the new career or field you
want to enter. First, you need to do your homework and
determine how much you can realistically make in the first few
years of your reinvention.
Talk to professionals already working in your desired field,
and get specific information on how much you can expect to
make moving into the field and what the long-term prospects
are for total compensation, job security, and advancement.
2. Determine your training and professional
Before you can prepare your reinvention budget, you should
determine how much you are going to need to invest for
training and professional development. Do your homework
and ask a lot of questions.
Ask those in your target field how much they spent on
training and where they received it. Research professional
associations in your new field and see how much they charge
for training and certificate programs.
3. Professional association memberships:
Professional associations provide ideal networking
opportunities to ease your transition into a new field, so be
sure to include the membership costs of joining one or two
Also, be sure to include attendance at a professional
conference, as this can be a great way to network and build
relationships with senior individuals in your new industry.
Are there any hidden technology costs that you will need to
make this transition? Will you need a new computer or laptop
If your career change involves starting a business, the
impact of these purchases could be reduced if they qualify as
business expenses, so be sure to familiarize yourself with
related income tax laws.
5. Volunteer to get experience:
Is there a way to position yourself for your reinvention so
you can be hired more quickly? Can you volunteer or intern to
gain valuable experience, which will help you land your job
6. Have a backup plan:
If you have a backup plan or Plan B, you'll feel much less
anxious during the reinvention. Work with your career coach
to develop a time line for your reinvention as well as a backup
plan, and match that up against the financial resources you
have available to fund the change. Is there sufficient wiggle
room? What will you do if the transition takes longer than
planned? How will you begin to generate cash?
7. Monitor your numbers:
Develop a tracking mechanism for keeping an eye on your
goals and financial numbers. Know what you are spending to
reinvest in yourself, how much you are making, and how much
you are spending. It is hard to ignore the facts when they are in
writing. One good way to do this is to periodically go back and
compare your actual expenses to those you estimated in the
Cash Flow Worksheet.
8. Think long term:
Before you make your career change decision, be aware that
a shift to lower income can affect your other financial goals,
most notably retirement, in ways that may not be obvious. For
example, if you haven't already built a solid income history,
your NIS benefits might be reduced. Further, if you are less
able to save for retirement, you could find that you need to
work longer. On the other hand, you might be not only willing,
but happy, to keep working to a ripe old age - as long as you're
in your target career.
Before you make your career
change decision, be aware
that a shift to lower income
can affect your other
financial goals, most notably
retirement, in ways that may
not be obvious.
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