Career Change: Considerations for Lower-Paying Jobs

Assess job satisfaction and fulfillment before considering a career change for potential income increase, factoring in opportunity cost and long-term impact.

### Career Change Considerations: Balancing Passion, Income, and Financial Preparedness
* 💼  The decision to switch careers to a lower-paying job with **high income potential** should be based on a balance of **passion, income potential, and financial preparedness**.
* 💰  It's important to consider the **opportunity cost** of starting over in a new career, which may take **8-12 years** to reach the desired income level.
* 🎯  The first step is to assess whether you truly love your current job and find fulfillment in it, as this is **crucial for long-term career satisfaction**.
* 📊  Following the Financial Order of Operations (FOO) can provide a **strong financial foundation** for career changes later in life.
* 🤔  Younger individuals may find it easier to make significant career changes due to **fewer dependents** and **more time to recover if things don't go as planned**.
* 🔍  Before making a career change, it's recommended to create a **"dream plan"** (best-case scenario), a **"down-to-earth plan"** (realistic expectations), and a **"doom plan"** (worst-case scenario).
* ⚖️  Consider both the **quantitative (income potential)** and **qualitative (job satisfaction, work-life balance)** aspects of a career change before making a decision.
* 💡  It's essential to look beyond just the **potential income increase** and consider factors like **job satisfaction, work-life balance, and overall life fulfillment**.

[Music] All right, Jacob's question is up next. It says, at what step in the foo does it make sense to switch careers to a lower-paying job with high income potential? I'm living comfortably with my current job, but my career advancement is very limited. So is there a step in the foo that this makes sense or how should he think about this man? This, well, I had somebody who came to me. It was an adult child of one of my clients that I had a call with, and that I could tell now realize they were already 15, I mean close 10, 15 years into their career, and they feel having this grass is greener type feeling on the other side that maybe they should change careers to go, yeah, but I asked a key question. I said, do you like your job? Like, yeah, I love what I do, I just, but I wish I made more money. I was like, okay, let's, let's make sure that the why intersects here because the comparison is the thief of joy, and we always think the grass is

greener for somebody else. I said realistically CU. I said, What's eating you up? And he was like, Well, I've got this friend that works in finance, this friend does this, sells insurance, and they're making all this money. I'm like, Okay, first of all, you don't really know if they're making all the money you think they're making, 'cause that industry is harder than most people realize. The other thing is, even if you made the job change, I think you have to take into account the opportunity cost of how long it takes you to become an expert and to actually reach traction point where you're making the money you think you'll make in that job. And for him, I was, I estimate, I said it's probably 8 to 12 years. I was like, So, take if you're in your upper 30s, are you really willing to pause your life for the next 8 to 12 years? You know, this might be, I don't know, the Jacob's situation, it might be shorter, it might

be F you know might be longer um. I was like so if that doesn't work and plus you answered the why of you love your job. I don't know that I think you are just doing the comparison thing now. Let me give you the other side cuz we have a whole room full of career Changers who were such Financial mutants that they got such ahead they were so ahead of the curve on their financial assets. They're like I just don't like where my life is. My why is no longer connected to waking up in the morning feeling like I'm making the world a better place in my own small way and I have fulfillment from what I'm I'm going to work to do and they bought their time meaning they got ahead of the curve so that they could go make a life change to do something where they did wake up with purpose. I think those are two completely different things. So the first question Jacob do you like your job and do you feel like you get fulfillment from it is the first step I would take yeah I love.

it and I think what's interesting is in my experience, it's easy for younger people to do uh giant career changes than older people. Just because you probably have, you know, less people depending on you. You have more time to kind of, if it doesn't work out exactly the way you think, time can kind of hide that. But what we have found is with our career changes, changes. I don't know that it's being at a specific step in the foo where you make this decision, but if you can follow the foo from as early as you can, what that does allow you to do is if you are someone who decides to do this later in your 30s or in your 40s and you've been following the foo and you've been doing the stuff that you're supposed to be doing, it sets you up on a platform to be able to navigate it better than someone who's not done that. So I don't know that it's a specific uh stage in the financial order of operations where you should consider a

career change. I think that the career does have to come more back to the qualitative pieces and the quantitative pieces. Just because you think that you might make more money doing something else doesn't mean that you will for sure make more money. It doesn't mean, like Brian said, that you're going to love it. So, I would really, really assess those two factors really, really hard before I jumped into it. And if you are going to make a jump, I do think, and Brian always gives this guidance, one of the things you should do before you ever think about a career change is you should put on your 3D glasses. You should do your dream plan. What if it goes just swimmingly well, better than I expect? You're down-to-earth plan. Okay, what do I think is realistically going to happen? And then you got to go to the doooo plan. What if I take this lower-paying job and this lower-paying job never even gets me back to what I was making at the high at the job that I left? If that happens.

would you still be happy with the move? Would you still be satisfied? Or are there other levers you can pull to be able to influence your financial situation? I think you got to go through that assessment before you can make the lead and don't skip the dooo plan and don't skip the D seriously CU actually you got to go into it with what happens if this thing doesn't turn out to be the rainbows and sunshine and unicorns that I thought it was going to be um nobody wants to do that the D part of the plan but I think that that's the smart way because there's going to be a lot of clarity when you're looking at maybe my job isn't so bad because like this person I was talking about the part that I think they were fail failing to also consider they had a great pension that was going to come that so it's not there's usually a tradeoff in life you know some of the people you daydream about do they do they they yes they

might make more money, but do they really own their time? Because if they're having to leave the house and travel four days out of the week, you know, to make this huge income, is that the same quality of income? So, so just make sure you're giving a full picture and accounting when you're doing the tart of the benefit, the pros, and the cons. Make sure you're being honest on all aspects, not just letting the money be the driver of the decision, that you actually need the life and the why to intersect with those points as well.

Should I Switch to a Lower-Paying Job with Higher Income Potential?

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Considering a Career Change for Higher Income

Switching to a lower-paying job with high income potential should be carefully considered, especially if you already love what you do.

It's important to realistically assess the potential income and consider the time it will take to become successful in a new career.

Comparing your situation to others and assuming the grass is greener elsewhere can impact your decision-making process.

The Importance of Finding Fulfillment in Your Career

Many people experience a disconnect between their job and a sense of fulfillment, leading to a desire for a career change.

Making a significant career change is often easier for younger people with fewer dependents and more time to recover from any setbacks.

By following a financial plan early on, individuals can better position themselves for a career change later in life.

Considerations for Making a Career Change

When considering a career change, it's important to evaluate both the qualitative and quantitative aspects, rather than just focusing on potential income.

It's also crucial to create a dream plan, a realistic plan, and a contingency plan to assess potential outcomes and satisfaction with the decision.

Additionally, considering other factors that can influence your financial situation and being prepared for potential challenges is essential before making a career change.

The Impact of High Income on Quality of Life

High income may not guarantee quality of life if it requires extensive time away from home.

It's important to consider the pros and cons of a high-income job, taking into account its impact on overall life satisfaction.

When making career decisions, it's crucial to prioritize a balance between financial benefits and personal well-being.