Paul Ferraresi

I see so many people working in a job that they hate. Countless people become addicted to drugs, alcohol or unconventional activities in order to bring pleasure into their lives. When I ask them what their life’s dreams are, I often hear “I want to retire about 2-3 years, or before I am 40 (or 50).” “Why?”, I ask? “Because I hate my job” is the usual response. My retort is, “Then why not leave your job today?” The standard answer, “Because I need the money and I have to stay.” Golly, there are countless thinking errors in their comments. Do you see them? Too often people box themselves into a lifestyle that demands they spend every penny that they make. Consequently, they are forced to stay in jobs that they despise. They have complained for years about doing something and never move forward. (I really think they do not want to change, they just like complaining).

Take a minute and analyze these people. If they had made a plan 5 years ago and took massive action, they would now be able to change their careers. If you or someone you know is in this box, then ask, “If I do not do any changing today, where will I be in 5 or 10 years: the same place?”

Here is an outline of a few general things you can do to work on changing careers.

Time Until Career Change:

• Someday:
  1. Aggressively pay off “bad” debt and build good credit.
  2. Live beneath your means. Buy less house and less car than standard rules of thumb.
  3. Direct more savings to a taxable escape fund (vs. qualified plans) than standard rules of thumb.
  4. Set up an automatic savings program to build an escape fund.
  5. Research or work with a career counselor to define a post-transition target destination.
• 5+ years out:
  1. Refine your target destination, including changes in compensation, expenses and lifestyle; retraining or start-up funds needed; length of transition period; impact on family goals.
  2. Identify preliminary target date and transition strategy.
  3. Calculate escape fund needed to cover monthly living expenses during transition period and other transition-related costs.
  4. Monitor escape fund annually: rebalance or beef up as needed.
  5. Plan to pay off large purchases (car, home improvement) by transition time.
  6. Begin living the lifestyle future will support.
• 2 to 3 years out:
  1. Pinpoint target transition date, factoring in vesting schedules, expected bonuses, vacation/personal days due, adequacy of escape fund, debt, family milestones (e.g., kids done with college).
  2. Redouble efforts to beef up escape fund and eliminate bad debt.
  3. Research options for health insurance.
  4. Revisit cash flow, other projections to ensure transition strategy still works.
• Final year:
  1. Take final advantage if employee benefits: flexible spending account, employee stock, bonuses, etc.
  2. Get approved for home equity line of credit.
  3. Consider purchasing disability insurance, if eligible.
  4. Nail down health insurance strategy.
  5. Plan timing of income (earned and unearned) and expenses to take advantage of lower tax bracket.

There are great books on this subject. May I suggest, “Do What You Love and Money Will Follow” by Marsha Sinetar.

Your work makes up over 33% of each day. Why not have fun at it? I love what I do and bounce out of bed each day without an alarm clock. I cannot wait to get into the office to help people. Is every day perfect? Heck no. It is filled with challenges and obstacles. Many days are like running down the football field with everyone on the field on the opposite team. They are all trying to bring you down. It is exhilarating and that is even before the touchdown is scored.

Let me close with a story that has been altered slightly. Saint Francis of Asissi was weeding and hoeing in his garden. The angel of the Lord came and said that God would call and take him in an hour. A monk was nearby, approached Francis and asked if he heard that he would be dead and gone in an hour. Francis said, “Yes.” The monk asked, “So what are you going to do?” Francis said “I’m going to finish hoeing my garden.”

Do what you love.

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Interesting Tidbit:

Overload

As the 78 million individuals defined as “baby boomers” (i.e. persons born from 1946-1964) enter their retirement years, an estimated 10,000 Americans a day will become eligible for Social Security benefits over the next 20 years.
(Source: Social Security)