Career reinvention requires an enormous investment of your time, energy, and finances. You might already know what you need to do when it comes to how much time and energy you will need for your career change, but managing your finances is equally important. In order to make a career reinvention work, you must do your financial homework. Without this research, you can sabotage your own best plans.
The first step is to do your research and determine how much you can realistically make in the first few years of your reinvention. There are several ways to accomplish this. There are numerous websites available with salary data; my favorites are www.salary.com, www.salaryexpert.com, and www.payscale.com.
More importantly, however, you should talk to professionals already working in your desired field, and get specific information on how much you can expect to make moving into the field and what the long-term prospects are for total compensation, job security, and advancement.
At the same time, you should create a budget for your expenses, and start tracking where you are spending your money. Are there places where you could tighten your belt? Start practicing living within your target spending level before you absolutely have to do so. This will ensure that you’ve developed a plan that’s feasible, and help you adjust to your new budget.
Also, take into consideration that if you’re working in a job you are passionate about, you are likely to feel happier and less stressed, which could result in spending less money on things to help you manage your stress. For inspiration and perspective, as well as practical tips on saving money and spending consciously, pick up the book “Your Money or Your Life: Transforming Your Relationship with Money and Achieving Financial Independence.”