How to Change Careers: A Practical Plan

Many people change careers at some point in their working lives, whether to pursue a passion, find better pay or work-life balance, escape burnout or adapt to changes in their industry. A career change can be exciting and rewarding, but it also involves uncertainty, including financial risk. With a thoughtful plan, you can make a successful switch while protecting your finances.

Explore your options

Before making a leap, take time to understand what you want and what’s realistic. Start by listing what you enjoy, what you’re good at and what matters most to you in a job, such as income, flexibility, stability, creativity or helping others. Reflecting on past roles can reveal patterns about the work that energizes you and the work that drains you.

Research fields that interest you. The Bureau of Labor Statistics’ Occupational Outlook Handbook provides information on hundreds of occupations, including typical duties, required education and training, median pay and projected job growth. This can help you identify growing fields and understand what it takes to enter them.

Talk to people who work in fields that interest you. Informational interviews, where you ask professionals about their work, offer insights you won’t find online, such as what a typical day looks like, what they enjoy and what challenges they face. These conversations can also build connections that help later.

Test the waters before committing fully. Taking a short course, working on a side project, volunteering or freelancing in a new field lets you see whether you enjoy the work and gives you experience to put on your résumé.

Identify your transferable skills

You likely have more relevant experience than you think. Transferable skills, such as communication, project management, customer service, leadership, problem-solving, data analysis and organization, apply across many jobs and industries.

Make a list of your skills and accomplishments from previous roles, then consider how they relate to your target field. A teacher moving into corporate training brings presentation and curriculum design skills. A retail manager moving into operations brings experience with scheduling, inventory and team leadership.

Highlight these transferable skills on your résumé and in interviews, explaining clearly how your past experience prepares you for the new role.

Fill the skill gaps

Most career changes require some new skills or credentials. Look for affordable ways to build them. Community college courses and certificate programs offer practical training at lower cost than four-year degrees. Online courses and certificates can teach in-demand skills flexibly, often at low cost. Apprenticeships combine paid on-the-job training with instruction in many fields, including skilled trades, health care and technology.

Your current employer may offer tuition assistance or training programs that could help, especially if you’re interested in moving to a different role within the company. American Job Centers can help you find training programs and may help eligible people pay for training in in-demand occupations.

Before investing significant money in a degree or certification, research whether employers in your target field actually require or value it.

Plan the money

A career change can mean a temporary pay cut, time between jobs or costs for training. Planning ahead reduces financial stress and gives you more freedom to make the right choice.

Build your emergency fund before making a switch. Having several months of essential expenses saved provides a cushion during the transition, whether you’re between jobs, starting at a lower salary or paying for training.

Pay down high-interest debt if possible, since lower monthly obligations give you more flexibility.

Create a lean budget for the transition period. Identify essential expenses and areas where you can cut back temporarily. Knowing exactly how much you need each month helps you evaluate job offers and plan your timeline.

Research typical starting pay in your new field. Entry-level pay in a new career may be lower than what you earn now, especially at first. Understanding the likely pay helps you plan and set realistic expectations.

Consider health insurance and retirement benefits during any transition. If you leave a job, you may be able to continue employer health coverage through COBRA or find coverage through the Health Insurance Marketplace.

Make the move

Update your résumé and online professional profile to emphasize transferable skills and new training. A summary that explains your career change can help employers understand your story.

Network in your new field by joining professional associations, attending industry events and connecting with people online. Many jobs are found through referrals.

Consider entry points that make the transition easier. Contract or freelance work can build experience. Internal transfers at your current company let you switch roles while keeping your employer, benefits and reputation. Some people transition gradually, building a new career on the side before leaving their current job.

It’s never too late

People successfully change careers at every age. Experience from your previous career, including professional maturity, workplace skills and industry knowledge, can be a real strength in a new one. With research, preparation and a solid financial plan, you can make a career change that brings greater satisfaction and new opportunities.