Changing Careers: Risk vs. Reward

Changing careers strikes fear into the hearts of many. Willingly leaving the known for the unknown takes courage for more than one reason. First, not many people do it. The appeal of an established career often consists of its security and stability, even when the career offers little or no personal satisfaction. Therefore, when considering career changes, you must be aware that risks are involved which must be accepted before you can reap any rewards.

Risks

The risks of career change should be apparent, especially if you have a family depending on you for support. After all, you could change careers to find out you cannot earn the same income as you do now. Furthermore, you could find out that you aren’t able to succeed in a new line of work. In short, you could lose a lot by changing careers, so evaluate the risk before taking any action.

1. Lack of experience: A new career means that you are starting over. You have experience in the workplace, but not in your new field. Until you spend some time demonstrating an aptitude for you new career, you could suffer from low earnings.
2. Regret: A major risk associated with changing careers is regret: your new career is not as fulfilling as you thought it would be. In fact, once you move from the frying pan to the fire, you may have renewed appreciation for the frying pan. Similarly, you may have regrets if you stay in your current career never having tried to do anything else.
3. Volatility: Changing careers to a new industry makes you more vulnerable to layoffs or unexpected industry downturns. You could take a fantastic job only to lose it after a short time.
4. Losing friends: If you’ve been in the same career for a long time, chances are that you’ve made a lot of good contacts and some good friends. You will miss associating with them, and you may never build such good relationships again.
5. Moving: Often to get the best opportunities in a new career you will have to move. This potentially means that you have to relocate to a new place with unfamiliar surroundings and people. You could end up all alone.

Rewards

Although the risks of career change are real, only those people who are willing to overcome their fear of those will have the opportunity to reap the rewards from a new career. After all, if changing careers did not have any benefits, you would not even consider it. The following are just a few of the potential benefits of career change.

1. Fulfillment: Studies repeatedly show that most people are unhappy with their work, often casting a dark shadow over life in general. Changing your career gives you the chance to find something that you enjoy doing as you earn a living.
2. Opportunity: If you have been in the same line of work, you could have already advanced as high up in the ranks as you will ever go. Starting a new career gives you the chance to become part of a growing industry where opportunities for personal and career growth are opening up every day.
3. Meeting new people: New professional and personal challenges associated with your new career mean that you get to meet new people and form new relationships. This stimulates your mind, your creativity, and your life. Those in your current field have gotten used to you: it may be time to let others see you shine.
4. Increased self esteem: Staying in the same career, doing the same work tends to erode your sense of self worth. When you make a career change you might find that your knowledge and skills are more valuable than you ever thought.
5. You take charge of your life: Nothing seems to be as debilitating as relying on other people to give you opportunities. By making a career change, you take control of your life. It’s you, not your boss or your company that determines how much money you earn, what responsibilities you have, and what accomplishments you can achieve.

The choice is laid out in front of you concerning changing careers: risk vs. reward. The decision to change careers is one that only you can make. Do not make it until you personally weigh all the risks and the rewards.

Written by Tom Becker, a personal finance blogger for MoneyChoices.com.au. Tom also reviews retirement savings accounts and other investment vehicles that keep your money safe.