Tuesday, June 5

Looking into new directions

So here's something new for me....

I've been thinking for a while about a career change, and of course there are financial consequences to such a decision. Obviously my earning ability is fairly strong now, and I would not be doing it for financial gain, so mostly the financial impact is negative.

Here are a few of the considerations:

  • Going back to school - tuition, lesser or no earnings during this period
  • Other training or conferences - travel costs, conference fees
  • New career - lower earnings in first 1-3 years, less developed network of contacts

Looks pretty grim, doesn't it? However, it is not all bad.

I have built up a lot of momentum in my finances and I hope that I could work part time during the transition to keep the drawdown on my existing resources minimal. In fact, I hope that my net worth would continue to grow, albeit more slowly, while I was in school and starting up the new career.

And one advantage is that I am looking into another area of consulting which would be better suited for part-time work or semi-retirement. And because I have the flexibility of private consulting, I could manage the transition in whatever way I see fit. So this would move me towards some life goals even though it may postpone some financial goals.

And of course, the reason that I am considering it is that I am getting a bit tired of what I am doing, and I'm ready for a change. :)

So what do you think? Am I doing this too early? Too late? Are there other considerations that you think I am missing? Let me know...


Mr. Cheap said...

I've actually considered doing something similar. Imagine every 10 years abandoning your career and moving in a totally new direction, what fun if you can afford it! I love learning new things, so I'd find this exciting, but I guess some people would find it scary.

If you don't mind the question, what sort of consulting have you been doing that so lucrative? Can I have your job if you go back to school? ;-)

Thicken My Wallet said...

Can you not hire a junior to do the grunt work for you and go to school on a part-time basis?

mOOm said...

Well what sort of consulting do you do now and what are you looking at? I'm about to make a career direction change myself.

the money diva said...

cheap/moom - My consulting right now is in a hands on/technical specialty area, which is why it pays so well. What I would like to move to is a more strategic/management area. I think that there would be potential for decent income there as well, but just not immediately. The degree that I am contemplating is an MBA.

Thicken - I'd rather not hire someone and keep the old practice area going because I am actually looking forward to the change and leaving it behind.


Promod said...

Find something you like doing and find someone who'll pay you for doing that. You'll then have a happy life.
--- Leonard Cole, Society of Actuaries

I considered an executive MBA in the late 1990s but decided that practical experience would be a much better teacher. At the time, I had wide leeway in my work, being responsible for life insurance product development, illustration systems and marketing material.

Your current work appears to be dependent on an expert --- you. If your new job is too, then what have you gained? The ideal is creating a business you work on rather than in. The secret is to shift from expert-dependence to process-dependence, as franchises do.

There's an excellent book by Michael Gerber called The E-Myth Revisited (where E=Entrepreneur). Before reconstructing your life, you may want to read it. I prefer the audiobook because Gerber has an amazing voice.

Anonymous said...

Have you considered creating your own new job? In other words start your own business. You will probably learn more starting your own business than doing an MBA.

Middle Class Millionaire said...

I say if your tired of what your doing now then just go for it. You can always fall back to your consulting career if you're not enjoying your MBA.

Canadian Money said...

A change would be a good idea.

Try not to burn any bridges or contacts as you move. You never know what the future holds.

balance50 said...

I am glad to see a lady of 32 already on the move to financial independence.

If you like helping people which I have no doubt that you do, you indicated about networking. A large sector of the population d not fully understand how money works 1e. the rule of 72, the 50/30 rule, the theory of decreasing responsiblility, debt stackins etc, and I think you would do good in that area.

Just a thought.

Rositta said...

Well I did it at age 46, I quit a lucrative real estate career (and it's booming here) to live a quieter life as a potter. We paid off the mortgage and live reasonably cheaply. I did it for two reasons, firstly my health didn't allow the long grueling hours any more and I was incredibly tired of dealing with the public. Now I deal with them on a totally different level and it's fun. Go for it, do the things you want rather than the ones you have to...ciao

the money diva said...

Thanks for all the comments, everyone! I will continue to update you as I explore my options...