Plan properly for career change
Going back to university has its challenges
WHEN you’re thinking about making a career change, it’s usually because you’ve discovered that the path you’re on is not as satisfactory as you may have believed when you left university. Or that the dream your parents had for you isn’t quite working out and you’d rather be doing something else.
It’s a good idea to ensure that the leap won’t bring financial strain with it.
You should begin by reducing your debt so that it’s as low as possible — particularly if you’re planning on quitting your job and studying full time.
Draw up a debt repayment plan and work out how long it’ll take you to pay off all your consumer debt.
A budget will also help put your adjusted lifestyle into perspective. If you plan to go back to school full time, you’ll have to factor in the loss of income. If you’re fortunate enough to be part of a multipleincome household, you’ll have to discuss your plans with the parties involved so you can figure out how to make ends meet with the added pressure of tuition.
This exercise will help you to determine if you need to make big lifestyle changes to accommodate your new pursuit — like getting to a smaller home or car to have lower payments. Now is the time to make these adjustments.
Don’t forget about savings. You might be fortunate enough to find a job in the industry you want to work in, but this might mean a pay cut if you don’t have the experience required to pick up at the level you left off in your previous incarnation.
A pay cut or completely leaving your job will affect your retirement planning.
A sit-down with your financial planner to discuss how you can keep contributing to your retirement savings while you’re temporarily unemployed will help put a lot into perspective.
Apart from retirement, you also need to think about healthcare. Will you have medical aid? If not, how will you pay for medical emergencies? Do you have enough in savings to survive without a salary and pay for unexpected emergencies?
You might be able to get around the problem by taking on a part-time course, if this is an option. This will mean having to find extra time in your day to study. It also means that obtaining your qualification will take a little longer, but you won’t have to give up your salary.
Alternatively, you could seek financial aid. Your work experience and any previous qualifications you may have could count in your favour here — take full advantage of them.
It’s also a good idea to talk to as many people as possible in the industry you plan on going into. What are the prospects like? What does it feel like to work in the industry?
Do not make the mistake of approaching your career change with rose-tinted glasses. Make sure that you are clear about where you’re heading and what it takes to make it. The last thing you want is to go through all these adjustments only to realise that it isn’t quite what you want.