How to shake up your career (without rattling your finances)

Estimated reading time
 8 min

Learn about

• Work out why you want to switch careers
• Research your new industry
• What you might need for your career change
• How you can be financially ready

A career change can be an exciting time, opening the door to heaps of opportunities – learning new skills, feeling more fulfilled, and even creating a better work-life balance.

But changing lanes can also feel a little daunting – especially financially. If you’re heading for a job change, here are a few things worth thinking about so you can change careers and keep your finances in check at the same time.

Think about your 'why'

Before you pack up your desk or hand in your apron, take a moment to reflect on your current job. We’re talking thoughts and feelings - anything your current work situation has brought up for you. Write it all down, either on paper or just in your phone – whatever works for you – to help clarify how you feel about your current workplace and why you want to switch careers.

This reflection can help set you on the yellow brick road towards the right career (and save you from backtracking because it wasn’t quite as you dreamed). Not sure where to start? Here’s a list of questions you can ask yourself to get those thoughts flowing:

• What do you value about your current job? What don’t you like?
• Do you prefer working on-site or at home? What about the great outdoors?
• Do you enjoy working on your own or with others?
• What do you want out of your career long-term?
• How can you use your skills in a different industry?
• What do you enjoy doing in your spare time? How can you do that in a work setting?
• Could you do with more money? Could you cope with less?

Brain hack: Impact bias is when we overestimate the intensity and duration of our emotional reactions to future scenarios. In this case, you might think that changing careers will bring you a lot of happiness. And you might make an impulsive decision to make the switch without really considering what it will be like. Keep this in mind while you dream about a change – is the grass looking a little too green on the other side?

3 things to research when changing careers

Whether you’re crunching data or reaching out to people who work in the field, researching your new industry can help you get a realistic lay of the land. Here are three things to pop on your new career research list:

1. Roles and jobs in the industry: By understanding exactly what your preferred industry offers, you can work out which types of roles are suited to your experience, and where you want to end up. It’s also a great starting point for figuring out the requirements of potential roles so you can upskill if needed.
2. The job market: Researching the industry’s job market is a great way to gauge what roles are in demand. And a baseline understanding of the market can help you work out if there’s growth potential in the industry.
3. The average salary: Knowing how much people in your new industry earn can help you negotiate a salary based on your experience, role and the going rate. Plus it can help you prepare for the future (and work towards your big financial goals once you get the job!).

What skills and qualifications will you need in your new career?

Some jobs require specific skills or qualifications. So before you start applying, take stock of the skills you currently have and work out how they might translate to a different industry. For example, if you are an office manager, how can you use your organisational skills in a different role?

If you need a new qualification under your belt, there are plenty of options to consider. You could go back to uni or TAFE or take a Vocational Education and Training (VET) course – whatever works for your career path and budget (just remember – there are costs involved with additional study).

Before you make the leap, you may be able to request a secondment and try out something different without leaving the comfort of your current workplace. A secondment is when you are temporarily assigned a new role in your company. For example, you might leave your admin job and do a stint in the IT department. This can give you practical skills and experience today which you can use in a different industry or workplace down the track. Or you might like it so much, you decide to stay in the new role (with your employer’s support, of course).

Tips to be financially ready to switch careers

• Get smart with your super: Make sure your employer has the details of your super fund ahead of being set up in your new job’s payroll. It’s now the law for employers to pay super into your existing fund rather than lumping you with multiple accounts. Having one super fund is a great way to save on fees but make sure it’s the right fund for you to maximise your savings for retirement. Check out the Your Super comparison tool to see how your fund is performing.
• Be prepared to cover your expenses: Changing careers can take time, and sometimes it doesn’t work out. So it’s a smart idea to look at how long you might be out of the workforce during your transition. Before you hand in your resignation letter, make sure your savings can cover expenses for that timeframe. The amount you need will depend on your current savings, your life stage, existing financial commitments and the costs involved in changing careers. Are you paying for a new degree, for example?
• Think about the costs and savings in a career change: Depending on the industry you want to switch to, there are some costs and savings you should consider. Does your new industry have a certain dress code you need to shop for? Will it cost you more or less in transport to get to work? Will your new workplace have on-site childcare you can use to save money?
• Revisit your budget: A new career often means a new salary. So if you’re looking at a pay rise, firstly, well done you! Secondly, now is the time to revisit your budget to see how you can put your extra income to work (Savings? Investments? Paying off the mortgage?). Of course, moving jobs can mean losing perks or taking a salary cut, so adding these factors to your budget tracker will ensure you’re financially prepared from day one.