Many people dream of a new career earning more money doing the things they love. In fact, labor surveys suggest that four out of five people are unhappy in their careers and want to make a change. We Americans are optimistic with a tendency to accept that the grass is always greener on the other side of the fence. Yet few people actually pursue a career change voluntarily. Why? Because age, high income, and debt lock many into their current jobs or fields, making it that much harder to change.

If you desire to make a clean break from your current career and start anew be it for more pay. personal satisfaction, or a better balance between your personal and work life prepare yourself for a more difficult transition than seeking a similar job with a new employer. Its unlikely that you will replicate your current salary or benefits in the beginning of a new career. while it is likely that youll need to invest in training or education to be hired. You may even be forced to relocate.

But these and other obstacles neednt hold you back from your goals. However, they do require preparation in order to surmount.

Preparing for a Career Change

According to Thomas J. Denham, managing partner and career counselor of Careers in Transitions, only about 40% of Americans ever plan their careers in fact, they spend more time planning their vacations. Whether or not you presently intend to change jobs or contemplate a career change, it is prudent to be prepared for the unexpected.

While continuing in your present job and career, you should do the following:

• Live Within Your Means. The value of a financial plan and a personal budget cannot be overstated. Restraining your impulses to buy things you need, rather than things you want, is difficult, but essential if you are to ever achieve the mental freedom that accompanies financial security. When budgeting, differentiate between your obligatory and discretionary spending reducing the latter is likely necessary in any emergency including a future career change.
• Assess Your Abilities and Deficits. Objectively evaluate your occupational strengths and weaknesses the things you do well, as well as the tasks you perform acceptably or poorly. Develop and implement a plan to improve those skills and abilities that are barely adequate or non-existent, including more training and education. Understand your likes and dislikes, how important each is to your current job, and how important both are likely to be to your new job.
• Be Aware of Factors That Affect Your Job, Company, and Industry. Advances in technology and a worldwide marketplace expands opportunities as well as competition. Jobs and careers across the country are being replaced with smart machines capable of doing intricate, physically demanding work without error for low cost. Skills once unique to America are being copied and performed in locations with abundant, cheap labor as a result of companies relentless drive for greater efficiency and lower costs. Few catastrophic changes occur overnight, so remain vigilant for signs that your job will be affected.
• Maintain and Improve Your Skills. While no person or position is indispensable in the modern world, it is far better to ride the wave than be caught in the undertow. Take advantage of company training and course offerings that will make you a better, more productive employee. Accept responsibility and take initiative. Push your way forward rather than waiting to be pulled by management or colleagues.

Financial Steps to Take When Making a Career Change

1. Negotiate a Severance Agreement