We’ve all heard about Plan B or a backup plan. It’s that second attempt to make something you’re invested in work. Sometimes, it’s thought of as a negative, following a failed first attempt, your Plan A. But, that’s not the case when you are attempting a career reinvention.
In this case, having a Plan B or a backup plan makes complete sense.
One big advantage for developing a Plan B is that you’ll feel much less anxious during your career reinvention. Work with your career coach to develop a time line for your reinvention as well as your backup plan, and match that up against the financial resources you have available to fund the change.
Ask yourself these questions: Is there sufficient wiggle room? What will you do if the transition takes longer than planned? And, how will you begin to generate cash?
Don’t leave these numbers to chance. Develop a tracking mechanism, such as a Cash Flow Worksheet, 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 difficult to ignore the facts when they are in writing.
Before you make your career change decision, be aware that a shift to lower income can affect 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 Social Security benefits might be reduced. And, 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’ve found a new career that better suits your passions.