Changing careers can be incredibly disruptive, especially if you have a family to support. But it can often feel like the essential next step in your career journey, whether you are stuck in a dead-end job with a boss you hate or you have recently discovered a passion that you want to pursue.

If you are concerned about how changing careers could affect your finances, keep reading. In this guide, we are sharing our top tips for managing your money while making a career change, so you can maintain financial security as you enter into this new chapter.

Assess Your Finances First

Before you even start job-hunting, you will want to sit down and run a fine-tooth comb over your finances. Make a note of your income, whatever you have got stashed away in savings, your monthly outgoings and any credit card debt or loans that you are currently repaying.

If your new role means you will be earning less for a while or doing unpaid training (which is always a possibility), you will need to factor that into your plans. Once you are fully on top of your current financial situation, you will be able to save money by making smart choices about what you can actually afford during your career change.

Build a Financial Safety Net

A proper financial safety net will keep you comfortable and anxiety-free if your career switch takes longer than you hoped. The general rule for creating an emergency fund is that it should cover at least three months of your living expenses, which gives you breathing room during the transition period and stops you from having to rely on credit cards or loans.

Depending on your circumstances, you may also need to account for things like travel costs and moving expenses, so you need to remember to have all the small details covered too when you are managing your money through this transition.

Reassess Your Spending

Switching careers can usually affect your income for a few months. With this in mind, it is worth working out your budget and looking at how you are currently spending your cash, then finding spots where you can cut back, even just temporarily. That might mean avoiding impromptu shopping trips and your daily coffee order, so you can stay financially stable until you have a consistent income again.

Your goal is to be pragmatic about your living expenses throughout the transition, so you won't have to dip into your emergency fund unless you absolutely have to. Figuring out how much your life costs can be eye-opening and prompt you to make better financial decisions, regardless of your career situation.

Plan Ahead for Professional Growth

A new career path can open up some fantastic opportunities, but you may only be able to reach that next level once you have developed new skills. So, while a big part of managing money during your career change will involve saving, it can also be worth spending wisely on professional development opportunities to progress quicker in your new field.

If you are transitioning into a completely new industry and your existing experience is limited, being able to prove that you have relevant qualifications will put you in a much stronger position for future career advancement.

Tip: Some employers will be happy to offer financial support for training or qualifications. It is worth checking if your new job comes with any of these perks before spending any of your own money on this.

Read More: How to Manage Your Budget After a Pay Cut

Final Thoughts

Changing careers doesn't have to turn your finances upside down. As long as you financially prepare for the transition, with a safety net in place and tweaked spending habits, your career shift should be relatively smooth and pain-free.

It takes a bit of careful preparation to give yourself the financial stability you need to focus on growing professionally, so you can fully enjoy all the opportunities that your new career brings your way.