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How to financially prepare for a career change

money jobs employment AP
Posted at 5:00 AM, Nov 11, 2021
and last updated 2021-11-11 08:50:36-05

PHOENIX — While many businesses are looking to hire more people, data shows that millions of Americans are leaving their current jobs for new ones, partially as a result of the ongoing pandemic.

Some cite burnout, while others overall career changes.

In July, 4.1 million Americans reportedly quit their jobs. One economist dubbed it "The Great Resignation."

"You have a lot of people who may not have felt comfortable making a job change during the pandemic or they didn't have the opportunities to be able to now are saying, I'm out of here," said Lisa Rowan, a consumer finance expert with Forbes Advisor.

She said lower-income earners, such as servers or those in the hospitality industry, may be the ones to take the leap and change jobs.

"The higher your income level gets and the more specialized your industry gets, the harder it is to make those switches if you want to stay in the same industry," she said.

For those thinking about leaving their current job, she wants people to consider if there is something that might fix the current situation, such as a change in responsibilities, schedule, or hours.

If that's not possible, make sure to have a plan regardless.

"You can't just sit around on your couch and say, 'Oh, what do I want to do with my life?' You need to maybe do some training, maybe go visit family," she said.

On average, she said it can take about five months to find a new job. So, during that time, may sure to consider your budget, especially if you leave one job before having another lined up.

"If you're someone who has debt, that doesn't mean that you can't make it right transition like this, it just means that you have to be able to plan for it," she said. That could mean paying down high-interest loans before you leave your current job. Also, it's a good idea regardless to have an emergency fund and savings in the bank.

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