On today’s episode, we are talking about making a career change and the importance of a support system during big transitions. The questions you might ask yourself are; How do you know when it’s time to move on? What do I need to know about tax planning and retirement planning while transitioning?
According to a survey by InHerSight, seven in ten women are looking to change careers. This is up 28 percent since we posed the same question just last year. So, why are they looking to change careers? We are seeing that a common theme is “burnout.”
So, what exactly is burnout?
Burnout, notably, was categorized this year as a medical diagnosis by the World Health Organization. A Gallup poll from 2018 indicates that burnout is common in the American workforce, with 23 percent of workers reporting feeling burned out at work very often or always, and an additional 44 percent reporting feeling burned out at least sometimes.
And due to many factors and the pandemic, we also saw that 2 million women left the workplace between 2020 and 2021. Many of these women were leaving because of burnout. The realty is so many women want to be in a workplace that works for them.
As these women decide they want to make the change, we should remember that it doesn’t have to be the traditional sense from going from one corporate job to another or just deciding not to do anything at all. The reality is there are SO many opportunities for us out there to reinvent, negotiate.
Find a reliable mentor to provide guidance through transition.
When you are considering a change in career, one of the first things you might want to do is find a mentor. This is a great opportunity to learn from them as you start to explore what you want to do.
Questions to ask a mentor:
· Did they mess up during the process? Where and what?
· What would they have done differently and why?
· What would they do the same?
During this process you can determine what you want.
Keep your ‘why’ at the center of your next steps:
· What is important to you?
· What is negotiable and what isn’t?
· What are you going to be giving up if you are leaving?
If you are leaving remember that you compensation package is not just your salary, it’s your bonus(es), benefits, stock options, your restricted stock and more. If you’ve traveled for work; how were you reimbursed, how did they support professional development, and what support system did you have in place? In a new career or job, what are they providing to you?
When you work with a financial planner, this can be helpful as they can advise on whether you are making a good sound decision. You want to ensure you are understanding what you need to live on; what can you get by with and what can you thrive with? It is a strategic thought process.
Here are some tips to financially prepare for a job transition (Source: Discover):
1. Build an emergency fund of at least six months in expenses
2. Do a financial reality check that includes your fees
3. Keep an eye on everyday extras
4. Take your money with you
When you do leave the workforce, you might be transitioning to a new space. There are behavior changes that affect your decisions surrounding money.
So, if you are one of those seven women considering a change or know someone that is, let us help you. We thrive on being able to help our clients on their journey and would be honored to join you. Remember You are Worthy of Wealth!
Feel free to schedule an appointment to our complimentary 30 min Wealth Assessment session to learn more about how we incorporate these strategies and others to assist you through the financial planning process.
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