Here is another valuable Management Tip of the Day from Harvard Business Review. To sign up for a free subscription to any/all HBR newsletters, please click here.
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When it comes to a major career change, pay is often a sticking point. Can you afford to switch jobs if you’d be making less money? Eliminate some of the uncertainty by testing out your new salary.
o Figure out what you expect to earn, and live on that for two to four months. This will give you a realistic picture of daily life in your new career.
o If you’d be making significantly less money, think hard about what you could cut back on — meals out, expensive groceries, or TV subscriptions, for example.
o At the end of your test, revisit your budget to see how you did. And, of course, check in with your spouse, partner, or other family members to discuss the financial implications of your career change.
Setting expectations for what you will, and won’t, be able to afford will leave less room for surprises.
Adapted from HBR Guide to Changing Your Career
Here’s a direct link to dozens of other Management Tips.