--- title: How to Survive a Career Change description: Making a professional change can strain your finances, at least in the short term. Here's how to prepare for the transition. authors: - name: Alexa von Tobel url: https://money.com/author/alexa-von-tobel/ at_money_since: 2016 articles: 1 covers: - Career Advice social: - https://x.com/alexavontobel former_staff: true published: '2016-03-30T10:00:46.000Z' modified: '2024-05-07T10:35:42.000Z' section: Career Advice tags: - career change - second acts word_count: 492 canonical: https://money.com/career-change/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![briefcase emergency kit](https://img.money.com/2016/03/160330_pla_survivecareerchange.jpg) I started my professional life on the trading desk at Morgan Stanley. For someone just out of college I made good money, but I already had the itch to [build something of my own](https://money.com/guide-launch-start-business/). Within two years I had left my job, started and deferred business school, and shifted gears to build a company that would let me focus on my real passions: entrepreneurship and personal finance. Fortunately, I had built up a solid emergency fund to give myself more flexibility. But for almost half of the people who fantasize about a [career shift](https://money.com/topic/small-business-startup-guide/), financial insecurity is what keeps them stuck, according to a recent Harris poll. Whether you are following a dream or looking for more income, flexibility, or other benefits, making a professional change can be a strategic, life-enhancing move. But it can also strain your finances, at least in the short term. The following moves will help prepare you and your family for the change. **• Build a cushion.** When I started my company, I had to go without a regular paycheck in order to get everything off the ground. I used my emergency savings—I called it my freedom fund—to support myself. Generally, I recommend at least six months of take-home pay as an emergency fund, but if you're planning a career change, I'd suggest at least 12 months' worth, to help you cover costs without having to take a job you don't actually want. **• Slash your budget.** Creating that large a cushion is hard but essential. Even if you expect to make more money eventually, you'll probably need to take a more junior position, with a smaller paycheck, during your transition. If the role you seek requires schooling, you'll also face education expenses and a longer period without income. Map out your budget carefully to determine the cost of your current essentials; don't forget big one-off items that won't appear monthly, such as annual memberships and holiday gifts. Then find areas where you can cut. Be ruthless: I was still single and supporting only myself when I didn't have a paycheck, but I had to learn to say no to pricey social outings, travel, and dinners out. Parents have even greater financial responsibilities to cover. **• Plan for school.** If new training is part of the equation, try to start classes while you still have income. If you go full-time, seek teaching jobs or fellowships on sites like [FinAid.org](http://finaid.org). You may also be able to offset costs by earning extra money through tutoring, taking other side gigs, or renting out space in your home through Airbnb. **• Keep on saving.** Any retirement contributions you make now maximize the time your money has to grow—so don't stop setting aside long-term savings. Even if you leave a 401(k) in place rather than roll it over, open an IRA and try to keep contributing there while going through the career switch. *Columnist [Alexa von Tobel](https://money.com/author/alexa-von-tobel) is the founder of LearnVest.* ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/career-change/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Career Advice", "item": "https://money.com/career-advice/" }, { "@type": "ListItem", "position": 3, "name": "Professional Development", "item": "https://money.com/professional-development/" }, { "@type": "ListItem", "position": 4, "name": "How to Survive a Career Change" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/career-change/#webpage", "url": "https://money.com/career-change/", "name": "How to Survive a Career Change", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2016-03-30T10:00:46.000Z", "mainEntity": { "@id": "https://money.com/career-change/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/career-change/#breadcrumb" }, "dateModified": "2024-05-07T10:35:42.000Z" }, { "@type": "Article", "headline": "How to Survive a Career Change", "articleSection": "Career Advice", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2016/03/160330_pla_survivecareerchange.jpg", "width": 2100, "height": 1400, "caption": "160330_PLA_SurviveCareerChange" } ], "author": [ { "@type": "Person", "name": "Alexa von Tobel", "url": "https://money.com/author/alexa-von-tobel/", "@id": "https://money.com/author/alexa-von-tobel/#author", "image": "https://img.money.com/2016/01/160114_bio_vontobel.jpg?quality=85&w=190&h=190&crop=1", "sameAs": [ "https://x.com/alexavontobel" ] } ], "publisher": "https://money.com/#organization", "datePublished": "2016-03-30T10:00:46.000Z", "description": "Making a professional change can strain your finances, at least in the short term. 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