Benefits and Dangers of Changing Careers and Paths

The following is a guest article by Flexo from Consumerism Commentary. Flexo is currently on a ten-day, ten-venue tour.

It would be wonderful to live in a perfect world. There would be no war and no poverty, and you could eat dessert before your meal or whenever you like. The weather would always be comfortable and pleasant, and you would never have to watch out for unpopped kernels when you eat popcorn.

A financial Utopia is just as rare. The advice that will get anyone there is familiar to Free Money Finance readers:

• As early as possible, know which career has the best chance of allowing you to earn lots of money over your lifetime.
• Attend a good school for your career if necessary but don't go into (much) debt.
• Get a great first year salary.
• Work hard, earn more income, save and invest what you have.
• Retire rich and enjoy your Utopian retirement.

This is a popular plan that has guided people to financial success. Each step of the way, however, presents a number of challenges, starting in the beginning. Some people finish high school knowing exactly what they would like to do, in terms of work or a career, for the rest of their lives. However, not only is this rare, but even the most confident high school graduates entering the workforce or college have an excellent chance of changing their mind at least once and likely more than once during their lifetime.

It's easy to forget that a change of course, even if it temporarily slows down progress towards a comfortable retirement, isn't necessarily a bad idea.

As we age, we learn more about ourselves. Someone might uncover latent skills that prove to be a better match for her identity. Someone else might meet a friend who introduces him to a life-changing mission. Not only do we discover who we are with time, but our identity changes everytime there is a new experience. There should be no reason to expect we stay along the same career path as life introduces us to new information about ourselves and about the world.

It's not easy to leave one career and life-long path in favor of another, but there are numerous benefits. Career moves often, but not always, involve switching from a less enjoyable activity to a more enjoyable activity. If you are doing something you enjoy, you are more likely to stay motivated to achieve. Your enthusiasm will be infectuous, helping you be perceived as a leader in the field. Overall, you may feel more fulfilled.

Even with these benefits, consider the dangers before you jump into a new career. You might have to start from the beginning. If the move would require a significant drop in salary without the benefit of long-term growth, you would have to change more than just your job. With significantly less income now and over your lifetime, consider how you will save more to meet your obligations. Reducing your expenses and leaning towards a frugal approach might help you recover some of the loss. If people other than yourself are relying on your income, taking a risk may not be something you are willing to do.

If possible, try your new career or path on a professional level before abandoning your current activities. Working towards two separate goals for a short time can help you compare before you make a decision. And decisions are never final; you can always return to your old path or try a new approach. The more you shuffle, the farther you may stray from the Utopian idea of maximizing your lifetime earnings and net worth.

Life isn't about dying with the biggest bank account, it's about all that you do while you're still given an opportunity to do it.

Comments

[PDubbs]

"Life isn't about dying with the biggest bank account, it's about all that you do while you're still given an opportunity to do it."

While the goal of FMF is "Grow your net worth," I think it is important to be reminded of this every once in a while.

I always need a "why" for action. Why do I work at growing my net worth? So that I can have a comfortable life, retire early, help others, and appreciate life, most importantly my family. Not to grow a bank account to pass on. After your time on Earth, you're remembered for what you do and the lives you touch, not how much junk and money you accumulate.

(steps down from soapbox)

[Work-Life Balance]

I read a few years ago that the average person will work 10-14 jobs in their lifetime. At age 39, I'm already on job #5 since I got my undergrad degree.

I never thought about taking a job that paid the most money. I've always pursued a career that aligned with my passions and helped move me a step further in achieving my dreams.

Gratefully, each time I've changed jobs, I've earned more, and I've gained more freedom to pursue personal entrepreneurial interests.

[Old Limey]

I agree with PDubbs, you can't take it with you.
Looking back now at age 75, working from the age of 16, and now after being retired for 18 years, what are the most important events in my memory bank?

They aren't associated with my work, even though I enjoyed my work very much and it enabled me to retire at 58 and to enjoy a really nice working life and retirement life.
What stands out above all the mundane time when you're getting your education, moving up the ladder at work, sitting in your car on the freeway, kissing up to your boss, and performing creative and satisfying work, are the things that happened outside of the schools, universities and workplaces.

I would have to say my best memories all seemed to take place on vacations, both the long ones and the short ones. They include all the wonderful times spent at a cabin at Lake Tahoe where my wife and I and the three kids would go throughout the year - skiing - fishing - hiking - boating etc. Then there are the backpack trips I did with one or more of the kids, climbing to the top of Mt. Whitney and Half Dome in the Sierras. Then my solo trips such as treks to Everest Base Camp, around the Annapurna Range, and climbing a 21,000ft. peak in Nepal, trekking in the Amazon & the Andes in Peru, and a 16 day, 230 mile, solo backpack trip the full length of the John Muit trail in the Sierras. Last but not least, canoe trips in 1957 with two buddies into the wilds of Algonquin park in Canada, portaging between lakes, climbing over beaver dams, fabulous rainbow trout fishing, howling wolves at night, and watching the Northern lights, the Aurora Borealis.

Then, the trips with my wife, Game viewing in Kenya, Botswana and Zimbabwe, climbing the Sacred Peaks in China, exploring Java, Bali, Sulawesi, and Lombok in Indonesia and many more in Turkey, Morocco, and Europe over the years.

Bottom line - You work to get the money to enjoy life through all of its very unique stages. This is why I fail to understand the mentality of people I have known that want to work until they drop. It doesn't make a scrap of sense to me. Work should be just the means to an end. This is why growing our net worth is no longer meaningful, there is no point in taking big risks and putting yourself through lots of stress just to leave a larger inheritance to others.

[Old Limey]

After thinking about my prior posting one thought that I had is this.
If you are self employed and the owner of a business, large or small, you probably travel a different path through life than a person that was always an employee. People like this that I have known, either retire very late in life or not at all.
I never had the confidence or desire to think about self employment so it was never an issue for me.

[wanzman]

Old Limey:

I agree with your last comment. I am banker who works exclusively with small business owners. In my experience, people who own small businesses see them as more of a passion than a job (the business is the end goal). The money is secondary. The business in and of itself is (most times) what makes these people happy. Now granted, they typically make a lot of money because they invest so much blood, sweat, and tears into the business.

Retirement is a lot of times not an option because they are already doing what they want to be doing....or they love the business so much they cannot fathom doing something else, or they are scared to sell the business because it might fail under new ownership.