Pondering a new career can be an exciting proposition. But if there's one part of the process that's likely to cause your eyes to glaze over and your mind to go numb, it's financial planning. Unfortunately, more than a few career plans have gone awry due to inadequate planning. As I discuss in "Finding the Work You Love," you need to survey your financial situation and fully understand the costs--in terms of actual outlay and changes in income--that could impact your lifestyle.
Understanding your assets and borrowing options is essential. You may want to conduct an inventory of your financial situation (see page 171 of the book) or head to a certified financial planner to get some expert advice. If you're pulling down a pension or Social Security, you need to factor these sources of income into the equation. Likewise, any savings--including a 401k or SEP--can make a significant difference. You may also want to begin using a software program such as Quicken, Money, iBank or Moneydance to view your spending and savings patterns over time.
Finally, consider an alternative lifestyle. By downsizing or cutting back on travel, dining, entertainment, and other options, you may be able to work less and pursue your dreams. Finding the work you love is as much about being financially savvy as it is about getting in touch with yourself. Remember, solid upfront planning can help you achieve your goals.
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