Second Career - Think Well about it

Sometimes it becomes difficult over time to let go your work although we might not be fit as our young days to work or sometimes it so happens that we get involved to fulfil our passion that we don’t mind accepting a low paying work for it. We find it very empowering to help someone or tender our services for well being of our society till we are capable to do so. So, today for such clients we would like to render some knowledge for their personal finances while working towards their second innings or passion. 

Plan well in advance – In case you are dissatisfied with your current work and want to change your career, plan well in advance. While planning take care of the following points:

a) Make note of your daily expenses to understand the required funds during transition period.

b) In case of any goal in short term, see that you do not disturb funds allocated towards it.

c) Ensure that you have reduced or zero liability when switching career goals.

d) Understand well the financial support that would be made available from the new job.

e) Do not disturb the kept aside contingency funds. 

Reduce Your Dependency – It is necessary to reduce the dependency on your professional income and depend more on your investment income. i.e. a business man may not retire from his business but it can be made possible to shift the concentration of his monthly income from business to investment income. Some of the popular modes are as follows:

a) Transfer Fixed Deposits from Cumulative to Interest Payout.

b) Convert Mutual Funds from Growth to Dividend Payout mode.

c) Tax Savings Investment should be made in least locked in instruments and not in long term products.

d) Start withdrawing interest earnings on your Business Capital rather than reinvesting it.

Give yourself a time limit – Set across a time frame to ensure that you do not miscalculate your expenses back up. In simple words, ensure that if you want to give a fixed time to experiment with your work/ passion in terms of monetary requirements. If the change is going to permanent, then it is recommended that you bring your family into confidence before you take your step.

Plan every step well in advance to avoid any impromptu or hasty decision.  


Regards
Saarthi Financial Planners
www.saarthifp.com