Sometimes, it’s time for a change. Perhaps you’re thinking of a job in a different field. Or perhaps you’ve always dreamed of striking out on your own and becoming an entrepreneur. Either way, if you’re thinking of changing careers, here are a few tips to consider before you make your move.
Create a transition fund. There can be lots of unknown expenses with a career change. For instance, you might be changing to a career that won’t pay as much. If you’re starting your own business, you might have significant start-up costs. Either way, you want to be prepared.
Get your credit score in order. These days, some employers will check your credit score before they hire you. And if you’re starting your own business, you want a great credit score in case you need to apply for loans.
Remember to stay on top of potential taxes, especially if you’re going to be self-employed, or thinking of freelancing. Specifically, you might have to start paying estimated quarterly taxes to the IRS. You’ll probably want to work with a professional licensed tax preparer on this one and some people even create a special savings account just so they can have enough to pay their estimated quarterly taxes and annual taxes.
Making a career change can be exciting, but before you take the leap, you want to be thoughtful and prepared.
The information contained herein is not guaranteed as to its accuracy or completeness. It should not be considered tax advice. Consult your financial professional and/or tax advisor for advice suited specifically to your individual needs.
This information in the Financial Tips section is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.