Chapter 21
Money, Finances, and Your Career Change
The trick is to stop thinking of it as “your” money.
—IRS Auditor
Every day I get up and look through the Forbes list of the richest people in America. If I'm not there, I go to work.
—Robert Orden
Too many people spend money they haven't earned, to buy things they don't want, to impress people they don't like.
—Will Rogers
Money, bread, bucks, benjamins, bones … it is time to talk about one of the most important aspects of any career. It is the first topic to come up whenever a client shares they want to make a change: the issue of money.
“Money was one of the biggest concerns I had when I decided to change jobs,” Kyle told me. Kyle was a serious guy who rarely laughed. He was articulate when we spoke together about career change and was one of the few individuals who knew exactly what he wanted to do. A distinguished man at the age of 42, Kyle did not fit the mold of a college wrestling coach; his brown Chinos and Izod shirt would fit better at the local country club. His stature was more that of a golfer than a wrestler, but wrestling was what Kyle was passionate about. He had left his corporate accounting job to take the position of assistant wrestling coach at one of the top Division II wrestling programs in the United States.
When Kyle left his executive position at the energy company, he approached the head wrestling coach at the local university with the idea of becoming an assistant coach. The coach's immediate reply was, “When can you start?” followed up with, “Unfortunately, we currently have no paid positions.” Kyle agreed to the volunteer position while working side jobs using, some of his savings to pay his bills and stay afloat. By the start of the following wrestling season (nearly eight months later), Kyle was still volunteering as an assistant wrestling coach.
In a surprising turn of events, the associate athletic director announced his retirement. The university decided to split his position into two specialized positions within the athletic department. This created a paid position for Kyle while still allowing him time to serve as an assistant coach of the wrestling team. Kyle was ecstatic about the offer and believed the position as associate athletic director would be an excellent opportunity to interact with key individuals on campus, thereby increasing future career opportunities while still doing what he felt passionately about.
Two years into his new position, Kyle realized he was spending the majority of his time working as the associate athletic director, basically doing what he had done at his corporate job, but for less money. His involvement with the wrestling team was decreasing each semester as more director activities consumed his time and energy. After missing two weeks of wrestling practice because of scheduled meetings and other job responsibilities, Kyle spoke to the leadership about the direction of his career:
“I left my previous job so I could pursue something very different, more in line with my goals. Instead, two years later, I am doing exactly what I did before, just not making as much money. I don't know how it happened. I am trying to balance earning a living with working as a wrestling coach.”
Money became a major obstacle to Kyle's success during his career transition. He had secured a job he enjoyed, but the money part of the equation was not working out as planned. I would bet $100 (since we are on the topic of money) that most individuals who have experienced a career change have dealt with money problems. Having a financial plan and knowing your options before you make a change is the best way to move past this major money barrier in a single bound.
Have a Financial Escape Plan
If you are wanting to make a career change, it is time to be strategic and devise your financial escape plan. (I have visions of Red and Andy from The Shawshank Redemption planning their escape. Pull out your fork and let's start digging out of this prison!) The following is key information you need to know when developing your plan.
If you are planning on moving to another organization, you need to have three to six months of salary socked away somewhere safe. I always recommend securing a new job before quitting your current job, but if you can't stay at your current place of employment, realize the average time it takes to secure a new job is three months. Warning: You don't want to experience the stress of trying to acquire a job knowing you have only one month before your funds run out. It causes desperation and potential employers can smell it a mile away.
If you are planning on starting a business, I encourage you to save up 8 to 12 months of pay. The cost of starting a business on top of the day-to-day expenses is going to cost more than you think. I already know what you are saying to yourself, “Dr. Bray, that would take me two years to save up eight months of salary and I can't wait that long.” “Not true” is my response. There are lots of ways to earn money in addition to your current salary. The important thing is for you to be able to focus on your new job or your new business. If you are stressing out about money, losing your hair (both men and women do when they are stressed out!), and trying to scrape by month to month, you are in for a terrifying ride. It is worth it to plan, prepare, and research, then move forward in a way that increases your chances for success. I know, I know … Entrepreneur, Fast Company, and other business magazines get you excited to start your own business. Their articles spotlight those who have been successful by maxing out their credit cards and mortgaging their homes to launch their venture. Doesn't it seem like all of the entrepreneurs spotlighted in those magazines make millions only one year later? Trust me on this one; the world is much tougher and more brutal than is represented in those articles. Preparation, planning, and knowledge will serve you well and improve your chances for success. Have a plan and have a stash of cash. If these preparations delay you a year, it will be worth every penny to wait.
Plan out the approximate amount of money you will need for your career change and how long the funds will need to last.
- I need $ _________ to last me ___________ months.
How You Can Earn the Exit?
Once you have a plan for your new career, it is time to earn your exit. Open an account at a local bank or slice a hole in your mattress to have a place to stash the money you need to make your exit. From your plan, you know exactly how much money you need before you can sing, “Take this job and shove it. I ain't workin' here no more.” (Really, is there any better way to quit a job than to sing that anthem as you walk out the door?) Now it is time to figure out how you are going to earn the money needed to make the change. Here are some suggestions to speed up your exit.
Most individuals cut back on their expenses so they can begin saving toward their six-month recommended salary stash. I agree with this method, but we can put some turbo into that savings plan. While not getting your $5 cup of coffee is going to help you (I know you will be grumpy and tired without it, but you will survive), you can also move to the earning side of the equation and get yourself another stream of income. Get yourself a side hustle (a small job on the side), some freelance work on the weekend, or maybe some extra hours or an additional project at work. This means you will have less free “me” time, but it will add up and will help you exit faster. When you reduce your expenses and also earn more money, the time it takes to reach your exit number will be cut in half. It is worth the sacrifice to do both. If you don't think so or you are not willing to do the extra work, you really didn't want a career change in the first place and I just spared you from a dose of failure.
There are lots of ways to earn extra money. You just need to decide what works best for you. Two options many of my clients have used are flexjobs.com and snagajob.com. Both offer telecommuting, part-time professional jobs. You can also go to any of the job search websites and enter in telecommute or part-time and lots of options will show up. (Also search the term virtual.) Some of my clients have consulted and some have even cleaned out their homes and had a garage sale. (After a client had so much success doing this, my own family had a big spring cleaning and held a garage sale that made nearly $1,000.) Whether you need $20,000 or $100,000 in your career change stash, these are some ideas of quick ways to earn it. Remember, this is not for the long term—you are doing this to move to the next step in your career, so go crazy and earn as quickly as you can.
Warning: Be sure you don't break any work agreements or contracts with your current organization. The last thing you want to experience is being fired for having a side job. I recommend all extra earning activities be after hours or on the weekend. (That way you have no conflict of interest.)
Find an Individual to Keep You Accountable
Nothing is more fun than sharing a victory or success with a friend. You are more likely to be successful if you have someone who will keep you accountable. So find a friend or loved one, share your plan, and ask if he or she will help keep you accountable and on track while you work through your career transition. If you don't have any friends or loved ones, then hire a career coach. (Catch the sarcasm?) Having someone to keep you accountable is invaluable during your career change.
Back to Kyle
Six months after our initial interview, Kyle appeared to be much happier. In response to my question of how he was doing, he remarked with excitement that our first discussion “woke him up” to the original reasons he had left his corporate job. He had since spoken with senior-level administrators at the university and expressed concern about his current position. He indicated his desire for a position that would allow him to balance his time with the wrestling program while still managing the athletic department. The administration was very accommodating and changes to his responsibilities were already beginning to take place.
The more prepared you are financially before making a change, the less stressful the experience is going to be. By finding ways to increase your income while cutting your expenses, you can quickly reach the monetary goal you have set for yourself in order to make your grand exit.