Is 2015 the Time for a Career Change? Financial Impact

With the new year a few weeks away, many people are beginning to set a variety of personal and career related goals. Is 2015 the time for you to make a career change? If this is on your mind, you must consider the financial impact and whether or not you are prepared for what could come your way.

Here are three ways your financial situation could be impacted by making a career change:

1. Earning less money. Money may be everything to some people, but it isn’t everything to everybody. There is nothing wrong with taking a job that pays less, as long as you will enjoy the position and are okay with the fact that your income will not be as high.

2. Benefits. This could work for you or against you. As you look to make a career change, consider the benefits you are giving up as well as what you are getting in return. This includes everything from health insurance to disability insurance to retirement contributions. Many people overlook this detail because they are so focused on how much money they will be earning.

3. Financial uncertainty. Is it possible that you could be moving from a relative secure position to one in which there is much more uncertainty? For example, if you leave the corporate world for self-employment you are throwing a lot of your security out the window. At the same time, you are putting yourself in position to run your own business and potentially earn more money in the future.

If you feel a career change is in the cards, the start of the new year may be the best time to make a move. This could bring many changes to your financial situation, so make sure you are fully aware of what to expect.