Career Change at 40 or 50? Financial Strategies to Fund the Transition

Even though it is increasingly common, changing careers in your 40s and 50s can feel daunting. insta_photos/Shutterstock

Gone are the days of spending your entire life at the same job. For many, a career change is the new norm; on average, people change careers at least three times in their lifetime.

Even though it is increasingly common, changing careers in your 40s and 50s can feel daunting. You probably have responsibilities that those in their 20s and 30s aren’t worried about, like a house, kids, or aging parents. Even with these responsibilities, changing career paths and following your dreams is never too late. In this article, we will cover how to plan for a successful career change in your 40s and 50s and help you seamlessly fill the financial gap while jumping from your current career to your dream job.

Assess the Financial Impact

When you change careers, you will almost certainly experience a financial impact. The first step in preparing for this significant life change should be having a plan to get you through the transition. You will likely have to part with your current income to build a new career. However, building up a little extra cash with a side hustle is wise before jumping in at your new job. You’ll want to assess the cost of the new shift you are considering, which is an excellent way to ensure you can survive the transition.