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A new career can also mean a new financial frontier. Find out what one writer did to capitalize on changes to her personal finances.
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If you’re considering moving on from your old career and transitioning into something new, you’ll have a lot to think about. Part of that could be a change in how much money you earn, and you might need to make some decisions about how to make your new salary work for you and use it to achieve your personal finance goals. You might also need help with tax planning, investing, and paying off debt. This is where a financial planner comes in.
Here’s how working with a financial planner impacted me, and why you should consider doing the same if you’ve recently changed careers.
A career change can open many doors
I moved from museum operations and management to digital content in 2021, but it wasn’t until early 2022 that I first met with a Certified Financial Planner (CFP) to shed some light on my money situation. At that point, I was feeling comfortable enough in my new role, but frustrated that little had really changed for me on the financial front. I had become a remote worker, and got to choose the city I live in now for reasons other than “I have a job here,” but I wasn’t earning a higher salary.
The most immediate money problem I faced was being in debt. Dedicating a portion of your future pay to high-interest debt payments can limit your ability to buy a home, save for retirement, or achieve other goals. So the first order of business was making a plan for me to get out of debt.
I had been trying to find a suitable side hustle since the end of 2021, so I could increase my income. My CFP gave me encouragement about finding a side gig that could help me build skills in my new career field as well as earn money to pay off debt. He also noted that I’d owe quarterly freelance taxes, and that a high-yield savings account was the best place to keep that money in between payments (he even recommended the bank I chose).
A financial planner can help you decide which doors to walk through
The first few monthly meetings with a CFP gave me plenty to think about, as well as actionable no-nonsense advice. I ended up finding the right side gig not long after the first meeting, and managed to earn enough money to pay off my debt and give myself a financial clean slate. As I approached a $0 balance, I thought more and more about what was next for me.
My full-time job was no longer working for me, and while I was happy to have had a stepping stone to a new career field, I wanted work that was a better fit. I applied for many more full-time roles, and was under serious consideration for a few of them, but thanks to the wise counsel and encouragement of my CFP, I ended up making plans to become a full-time freelancer instead of just taking another salaried job. And no one was happier for me than my CFP when I followed through on that plan at the start of this year.
Another subject that loomed large for me was buying a home. I decided after changing careers that homeownership was something I wanted to pursue again, after many years of renting in the wake of my first disastrous experience owning a home. With higher pay and no debt, getting a mortgage had become a real possibility. So as soon as I made that last debt payment, I switched my focus to saving money for a down payment, closing costs, and other expenses I’ll incur when I become a homeowner. Again, the advice and help I received from my financial planner has been paramount to my confidence in my ability to make this happen for myself.
Financial planners aren’t just for rich people
I used to believe that it only made sense to meet with a finance professional if you had a lot of money to manage. As it turns out, this isn’t the case at all. I think if I’d had the opportunity to work with a CFP sooner, I might have been able to get out from under debt and make positive moves for my career and financial future sooner. But ultimately, it was better late than never.
There’s so much a financial planner or other finance professional can do for you. If you need help with the basics like budgeting, or more complicated matters like estate planning, investments, and beyond, look for a money coach of your very own. And if a career change is in your future (or your recent past!), you may appreciate the help even more.
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