How to reset your career

You’ve been working hard for years and want a change or you’re about to be downsized. How do you go about doing something different? Here are some tips on hitting your work “reset” button.

Going freelance – what you need to know.

Don’t ditch the benefit because you may be eligible for medical, dental and life/disability insurance through a professional association’s insurance partners or a spouse/partner’s employer.

Set up a contingency fund

Your cash flow will likely be more unpredictable so build a financial cushion to fall back on during any slow periods. Consider a Tax-Free Savings Account (TFSA).

Pay the taxman

Put aside a portion of your earnings to pay income tax and GST (if applicable) – you may pay annually in the first year then move to quarterly instalments if you exceed your province’s net tax owing threshold in both years.

Deductible expenses

Be sure to keep all business expense receipts – if you’re principally working from home, the portion of your household expenses related to the workspace may be deductible from your income for tax purposes.

Lifestyle

Be prepared to adjust your spending habits (for example, vacations may have to wait until your business is established), especially during the critical start-up period.

The upside to being downsized

Job loss may be the best thing that’s happened to your career. The key to quickly moving on is proactive planning.

Consider your options now

Will you retire early, go back to school, look for another job or start a business?

“Be prepared to adjust your spending habits (for example, vacations may have to wait until your business is established), especially during the critical start-up period.”

Research government programs

Through the federal government-funded Self Employment (SE) program, you may be eligible for special EI benefits in addition to income generated by your start-up, plus business skills training (eligibility requirements for the SE program may differ by province).

Put money aside

Save enough money to ease financial stress while focusing on starting your new business. Those savings, along with severance pay and employment insurance (EI) benefits, can keep you financially afloat until your business becomes profitable.

To be sure your home-based business “starts up” on the right financial footing and that you stay on course for all your financial objectives, talk to your professional advisor soon.