It's a simple fact that people change. Sometimes you're in the middle of your career when you realize you're no longer the person who chose that lifestyle. Changing careers jobs is one thing, but switching careers mid-stride presents conflicts in both the short- and long-term. You don't necessarily have to start over at an entry level position if you approach a career change conscientiously.
Do you want to transition into a similar career or a new field altogether? Do your existing skill sets transfer smoothly? Do you have enough experience and field knowledge for what you want to pursue, or should you take a class or entry level position to prepare? That's not to mention the more practical concerns regarding financial stability: can you earn a living wage in your desired career? Do you have enough savings to hold you over while you transition?
Here are the top 7 tips from financial advisers and employers for a successful career change:
Boredom and frustration are inevitable in every job, but that's not the same as feeling stagnated. The midpoint of a career is about 10 years. If you've acclimated and committed to your job that long and still feel unfulfilled, it's time to consider if you want to make a permanent change.
2. Realistic Goals
Maybe demand for your current career is shrinking or just undergoing a massive change. That could be the source of your unease and a good sign that you shouldn't expect a similar field to offer expansive opportunities. Be realistic about your current skills sets. Maybe take an aptitude test or pursue career counseling.
3. Expand your Network
Perhaps your current employer has connections to other fields that you could transition to. Expression respectful interest could alert the people familiar with your work that you're expanding and open doors for a new position. But your network of friends, college classmates, and even acquaintances is a valuable resource, as well. Make your interest known and ask questions about their fields, particularly if they're expanding.
4. Job Shadow or Volunteer
Depending on what your career goal is, some companies allow interested individuals to volunteer at their workplace. Some professionals allow people to job shadow them at the office. Additionally, many colleges maintain an alumni network of professionals who are open to be contacted.
5. Take a Class
Update your knowledge of the field you're targeting. Do research online and consider if enrolling in an evening course or online seminar could bring you up to speed. You could even reach out to professionals in the field to inquire what skill sets are most promising and desired right now
6. Refresh Your Skills
If you can't take a class, you can also sharpen your skill sets by taking on extra tasks at your current job or beginning your own independent project. Many organizations, including college alumni groups and employers, offer professional training. Depending on your skill set, you can also freelance to contract extra work on the side before you completely jump fields.
7. Update Your Resume and Cover Letters
You'll need to re-package yourself and your work experience to impress prospective employers. This is especially crucial if you're new to that field. Make sure your cover letters focus on your existing skills that qualify you for the job; don't dwell too long on your on work experience that's unrelated to the job you're applying for. Be sure to re-design your summary statement or objective section to convey your new interests, goals, and qualifications.
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- 7 Things to Consider Before a Career Change ›
- Thinking of switching careers? Read this advice — Quartz at Work ›
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- 10 Steps to a Successful Career Change ›
When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.
A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.
One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.
The Federal Reserve
The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.
This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.
The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.
Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.
Frugal gifting often gets a bad reputation. However, this shopping method does not make you cheap — it makes you practical. Frugal gifts often avoid waste and overspending and can be just as meaningful (if not more so) as any other present.
With the National Retail Federation predicting each consumer this holiday season to spend upwards of $1,000 on holiday gifts amidst an economic recession —this year might be the perfect time to reconsider your spending budget. We've formulated the ultimate list of frugal gift-giving ideas to get you started.