Preparing for a Career Change

Plenty of people spend time imagining a different job, one that pays better and feels closer to what they actually enjoy doing. Labor surveys back this up: most workers say they aren't satisfied with their careers and would like to switch. There's a stubborn American optimism at play, the belief that things will be better somewhere else, yet very few people ever make the jump on purpose. The reason usually comes down to inertia. A good salary and a certain age make it feel safer to stay put than to risk a move.

If you want more money, more satisfaction, or a saner split between work and the rest of your life, you have to get ready for a rough stretch while you look for something new. Relocation may be part of it. Your salary or benefits might shrink, at least for a while. You may also have to spend money on schooling or training before anyone will hire you for the work you want. None of that should stop you. Just go in expecting it.

Only about four in ten Americans actually sit down and plan their careers. People tend to put more effort into planning a week off than planning the work they'll do for decades. So while you're still drawing a paycheck at your current job, there are a few things worth doing.

Start by living within your means. Keep your budget and your financial plan inside limits you can actually sustain. Buying what you need instead of giving in to every want is what eventually buys you the freedom that financial security brings. Separate the spending you choose from the spending you can't avoid. Trimming what you spend and building up savings is how you create a cushion for the gap a career change will open up.

Take an honest inventory of what you do well and what you don't. Look at the specific tasks you handle easily and the ones you fumble. Where a skill is weak or missing, make a plan to build it, which might mean more education or training. Figure out, too, what you like and dislike about your work, how much those preferences matter now, and how much they'll matter in whatever you move toward.

Pay attention to what's happening to your job, your employer, and your industry. All over the country, machines are taking over work that's complicated or physically hard, doing it cheaper and without the mistakes a person makes. Skills that used to set someone apart are being reproduced by cheap, plentiful labor, and companies lean on that to cut costs and run leaner.

Keep sharpening your skills while you're at it. Nobody is irreplaceable anymore, in any role. Sign up for the classes and company training that make you better at the work and more useful to have around. Take initiative, own your mistakes, and push yourself forward rather than waiting for a manager or a coworker to notice you and pull you up.

When money gets tight, there are concrete moves to make. First, try to negotiate a severance deal. Severance can cover unused sick and vacation days, a payment tied to how long you worked there, continued dental, mental health, and life insurance for a period, and help finding your next job. Firms going through liquidation or reorganization will sometimes pay a bonus to people who stick around until the work is wrapped up. Even when you leave by choice, part-time work with the same employer can occasionally fill in income while you search or retrain. A recent court ruling suggested some of these payments may not be hit by FICA payroll tax.

Cut your living costs, because your income will almost certainly fall during the switch. Drop or shrink the spending you can control, and take a hard look at your fixed costs to see which ones really earn their keep. Someone with no dependents needs only minimal life insurance. A younger person who rarely gets sick can usually take a health plan with a higher deductible and lower premiums. Call your credit card companies, tell them where you stand, and try to arrange smaller payments without piling on interest. Staying inside a sensible budget through the transition matters more than almost anything else.

Go after whatever financial help exists. If you were laid off or let go, file for unemployment benefits right away. Look into training assistance from state and federal programs. Apply for scholarships, grants, and student loans tied to the schools or organizations offering the education you need. Check both public and private groups, since there are hundreds of benefits set up for people who are out of work.

Changing careers rattles even people who feel prepared and sure of themselves. Nothing guarantees the choice pays off. Still, large numbers of Americans switch jobs and careers every year, head off in a new direction or start their own companies, and don't look back. You can land the job you've been picturing. Pick the work that fits your goals, then build a plan to get there. - Erin