Six Midlife Career Change Tips – an Unconventional View

There is an increasing amount of advice available to people in midlife who are looking to find a new job or change careers. Rob Bennett, of PassionSaving.com offers six career change tips which are less conventional than most of the advice on offer. See what you think.

1.       Unconventional midlife career change tip 1: Each day you remain at a job you don’t love because the money is good you fall farther behind on your long-term quest for financial freedom.

Rob contends that remaining in a job because the pay and benefits are good overlooks the importance of recognising ‘what you learn’ from your job. If you aren’t learning in your current role you will be falling behind your peers who are in jobs where training and learning are considered essential. The financial risks of staying at a job where you are not continuing to learn are often greater than the financial risks of making a well-planned move to something you enjoy more.

2.       Unconventional midlife career change tip 2: Don’t take the “Do What You Love and the Money Will Follow” maxim too seriously.

Whilst this may be true, in most cases, it does not establish WHEN the money will follow. A sound financial plan is required to ensure that the new job or project is given enough time to mature and provide the expected financial rewards.

3.       Unconventional midlife career change tip 3: Focus not on work issues but on money issues.

However much you plan, however much you feel you are suited to the new job, you have not done enough to take the risk involved in handing in a resignation from your current job in pursuit of a mid-life career change.

You must put a financial plan in place to smooth out both the current and future transitions. If you don’t, there is a good chance that a few years down the road you will be back in the same sorts of circumstances that caused you to want to make the first midlife career change.

4.       Unconventional midlife career change tip 4: Understand that the real reason for your job dissatisfaction lies within.

Rob’s view here is that it isn’t a bad boss or a bad company culture that causes you to want a midlife career change – it’s you!

There are of course outside forces that play a role in causing you to be dissatisfied in your career and there are bad bosses and some pretty awful company cultures. But those outside forces are not usually the primary factor in causing job dissatisfaction, and it is important for you to understand what the primary factor is if you hope to pull off a successful midlife career change.

It is natural and good to feel dissatisfaction about a job after you have been in it a number of years. It is the desire to learn and grow that is causing you to become dissatisfied with a career that no longer provides the challenge it once did. The surprising thing would be if you never felt a need to pursue a mid-life career change.

5.       Unconventional midlife career change tip 5: Be wary of quick solutions to the problems causing your feelings of dissatisfaction.

It makes perfect sense to seek a new career after mastering an earlier one or finding that one is not suited for the earlier one. The issue to beware of is that there is a good chance that the frustrations experienced in the earlier role will recur, this time when you are older and have fewer fresh-start options open to you.

The best approach is to gain some level of financial freedom before making the switch to a new role. Not always possible, of course, but if this can be attained, then the pressures on you will be greatly reduced. It is by reducing the extent to which one needs to work for money that one obtains the best possible long-term assurance of being able to spend one's time doing soul-satisfying work.

6.       Unconventional midlife career change tip 6: Understand that what you really need is not career planning alone, but a combination of career and financial planning.

Financial planning on its own doesn’t work. Career planning on its own doesn’t work. It is a combination of the two which works best. If you can build a nest egg you have more control over your career options.

Yes, you need to change careers. But you might want to slow down in your implementation of the plan and make sure that the solution you come up with is one that will serve you well for a long time to come. To make a successful mid-life career change, you need not just a job-change plan, but a money-change plan too. Let’s call it your Life Plan!

Read the full article here: www.passionsaving.com

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The Mid Life guide to adjusting your finances for life on a pension

It’s on the horizon, you can almost smell the beach at the Costa Del Sol, you’ve earned a five star retirement but have you saved enough of those earnings to see you through? 

If you’re like most people on the verge of retirement, you’ve probably got a money worry or two. Adjusting to life on a pension doesn’t have to be intimidating. 

Pension contributions

Hopefully, you have been taking advantage of the Inland Revenue Salary Sacrifice system or AVCs and plowing extra money into your retirement fund.  By sacrificing some money now, and placing it into your tax free pension account, you reduce your taxable income, so you can eventually spend your tax pounds on that trip of a lifetime.  There may also be other ways to minimize your tax through family trusts and clever investments, make sure you’re watching every penny!

Now is the time to review your investments too.  The recent financial crisis may have left a big hole in your portfolio.  If you haven’t already, it’s time to consult your financial advisor about reassessing your investments, to find the best balance between maximized income and long term security.   If you don’t have an ISA – start one now!

Where does the money go?

Next, take careful stock of where your money goes each month – it’s time to decide where you can tighten the proverbial belt.   List the things you have always dreamt of doing and set aside the money you will need for the important ones.  If you have this money now, put it in a high interest bearing account until you are ready to use it. 

Find out exactly how much you will have to retire on, set yourself a livable daily budget (you may like to try an online retirement calculator to help you plan your spending), and practice living to this budget now.  Once you remove your work expenses, will this budget be sufficient?  If not, speak to your financial advisor about what can be done now.

Shop around 

Contact your utilities and communications providers and your local Council One Stop Shop to ask for any discounts such as subsidized transport or electricity supply you may soon qualify for.  It may also be useful to discuss your finances with your local benefits office depending on your situation.

Next, shop around for insurance.  Nowadays there are plenty of insurance companies catering to retired people with heavily discounted motor and home insurance on offer.  Consider whether a second car is still necessary, and whether you still need that cell phone and high speed internet you’ve been using for work. 

The Grocery bill

You will find that one of your biggest expenses is the weekly grocery bill.  Investigate fresh food markets and countryside stalls that sell heavily discounted fresh food in the peak of its season.  There may also be a bulk fresh food market nearby that caters to retailers, often these are open to the public too and are a far cheaper option. Purchase meat and household items in bulk from warehouse stores.  If you have a business name registered (for any earnings from your hobbies) you may be able to buy from wholesalers, saving extra on tax.

Take note of the clearance days at your local market.  At least one day each week, larger stores will clear fresh foods, dairy and other perishables that are still in perfectly good condition but will soon reach their sell by date (sometimes stores called it their “market day”).  Either cook or freeze these items straight away.   Cook extra portions of foods such as pasta sauces and casseroles to freeze and then reheat as needed.  And of course, keep an eye out for offers at your local grocery store.

Now that you have more time, consider growing a vegetable garden or window box.  Try to plant the more expensive vegetables and herbs that you use regularly.

Subsidise

If your financial situation becomes unmanageable, there are options to make money in retirement.  If you own your own home or at least have a spare room, consider opening your doors to a foreign student.  Students pay up to £120 per week and in many situations, this money is tax free.  You may also wish to consider generating income from something you enjoy, such as teaching a musical instrument, hosting cosmetic and home wares parties, selling craftwork on Ebay or even qualifying as a Marriage Celebrant, ESL teacher or Interpreter.  

And finally, before you make a purchase, calculate just how much it is really going to cost. Beyond the price plus vat, a £500 purchase today may cost you a holiday next year.  Consider how many hours you had to work to save that £500, and consider if the purchase will make you happy for at least that long.  If not, don’t buy it, and if so, wait a week and see if you still want it so badly.

Consult your Financial Adviser on all the ways that you can manage your investments and budgets better and retire the way you’ve always wanted!

About the Author:

Susan Long has spent many years developing strategies for making the retirement dollar go further through her work at Sell House Fast

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The Mid Life Opportunity (www.MidLifeOp.com) is a community for Mid Lifers. Advice and Guidance will soon be available from The Mid Life Coaching Panel. It’s free to join so what are you waiting for?

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