You’ve spent years climbing up the corporate ladder and have earned multiple accolades from your job. But now that you’ve reached mid-life, you’re starting to wonder if you should pursue a new career path. Maybe you feel like you’ve reached a plateau or your current work isn’t as fulfilling anymore. It’s been in the back of your mind, but between raising a family, and going to different activities and events, it’s been challenging to figure out what to do next.
The good news is that you’re not a young adult who just graduated from college. You’re an accomplished individual who has decades of experience and developed sought-after skills. But now you’re trying to determine which way to pivot.
According to the U.S. Bureau of Labor Statistics’ longitudinal surveys, midlife is a common stage for Americans to make a professional change. There’s a variety of reasons for this occurrence. Workers make this move to obtain higher income, more work-life balance, and flexibility.
If this sounds like you, read on to learn more about the financial impacts about leaving your job to pursue a dream, go back to school, or to start your own business.
Reasons for Changing Your Career Path Mid-Life
Gone are the days where you would work at the same company for decades. Now it’s common for people to switch careers multiple times over their lifetime. Especially with artificial intelligence (AI) and new innovations, we’re seeing many industries being disrupted. As a result, we’re witnessing mass layoffs and restructuring across the board. So, if you’ve been laid off, it could be an opportune time to reflect on what new goals you want to achieve.
When people reach their 40s and 50s, they have gained sufficient working experience. It’s also a significant time in their lives when they’re reflecting on whether they should continue down the same path or try something new. In fact, about a third (33%) of Americans who are 40+ regularly change their occupations. So, you’re not alone if you feel like you want to switch careers.
Some people feel like they aren’t valued at work, or they want to have more control over their schedule. Another possible reason is their priorities and values change over time.
Mid-life is also a time when people realize that they have less years ahead of them. They may also want to make more of a positive impact on the world. Or they may simply want to focus on self-development. At this stage, they’re usually able to take on more calculated risks that they weren’t able to do when they were younger.
Pursuing a Passion
When it comes to following your passion, you need to know yourself and what you’re truly passionate about. You could be really talented at something (such as baking cupcakes) and want to sell it locally to customers for special occasions like birthday parties, baby showers, or weddings.
If you want to turn your passion into profits, you must be willing to put yourself out there and market yourself. You’ll need to build a professional brand so your products and services are top of mind. It will require you to network with people in your desired industry. So, if you want to start selling desserts, you’ll need to test out different recipes, come up with a menu, find a kitchen, and set up a storefront to accept orders from customers.
Alternatively, you may want to follow a passion where you take your transferable skills and apply it to another industry. Be sure to update your resume and brush up on your interview skills. The top career change choices are those who pivot into project management, healthcare, cybersecurity, coaching, and technology.
For those who want to make a big difference, they’re usually driven by working for a non-profit organization or a company that focuses on corporate social responsibility (CSR), environmental impacts, or providing education to others.
Passion Project Costs
You may need to upgrade your skills to follow your dream job. Consider taking a new course or program to help you become certified or earn an industry designation. Also, you may incur some initial expenses like buying materials, supplies, or equipment to get started.
When I think about following a passion, I believe the biggest impact is the time commitment.
It requires countless hours of practicing and perfecting your craft. Be prepared to make mistakes and learn from them so you can improve your skills.
Going Back To School
Some older adults may have put a lifelong interest on the backburner to pursue a more “safe” career option. But now they have that itch they need to scratch. So, they might consider going back to school to study again. Maybe they want to learn photography or new computer skills. Whatever the subject, they’ll need to commit months or even years to earning a certificate or degree.
Education Costs
Becoming a student all over again could come with a hefty price tag. Depending on the course or program you choose, you’ll need to factor in the cost of tuition and textbooks. If you’re moving out to live on (or near campus), you need to budget for accommodations, transportation, and meals. To help offset the financial burden, you can look into applying for scholarships, bursaries, or grants.
From a cost-benefit analysis, the time spent going back to school means that you’re no longer going to be able to earn income from a full-time job. So, if you’re raising a family or taking care of aging parents, you’ll need to have money set aside for ongoing household expenses while you’re studying.
Starting a Business
Instead of working for an employer, some people decide to venture out into the world of entrepreneurship. There are different paths to consider. One could go into freelancing, consulting, contract work or start a franchise. For instance, it’s normal for an individual to take their full-time corporate experience to become an independent consultant or take on a fractional executive position at a company.
Startup Costs
If you choose to start a business, you’ll likely have initial startup costs and ongoing business expenses. After all, you’re the one calling all the shots. You’ll need to allocate funds for various expenses, including marketing, office supplies, rent, utilities, and even payroll if you plan to hire employees. Fortunately, some of your business expenses could be tax-deductible when you file your tax return with the IRS (Internal Revenue Service).
Usually starting a business takes a lot of time and effort. In the early days, you may not have a steady income stream. As such, it’s important to have an emergency savings fund so that you have a cash cushion. A smart move is staying at your current job, while starting your business on the side. That way, you still have a safety net and you don’t need to stress about making money from the get-go. Then, when your business grows and flourishes, you can decide later on to take it on full-time.
And that’s exactly what I did. I worked at a corporate job and spent several years growing my freelance business on a part-time basis. When it made financial sense, I was able to leave the corporate world and build my business full-time.
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Sources:
- https://www.forbes.com/sites/kathycaprino/2023/10/21/how-to-make-a-successful-career-change-at-40/
- https://www.freestyle-careers.com/new-blog/the-art-of-the-midlife-career-pivot
- https://finance.yahoo.com/news/midlife-career-pivot-becoming-normal-060343935.html
- https://careerservices.fas.harvard.edu/blog/2022/04/06/how-to-navigate-a-midlife-career-change-step-by-step-guide/
- https://valnelson.com/career-transitions/mid-career-change/
- https://www.betterup.com/blog/career-change-at-40
- https://meritamerica.org/blog/best-careers-at-40/
- https://www.meawisdom.com/midlife-career-change/
