Is Your Career Helping You Create Financial Flexibility?
A career is not a life, build financial flexibility to live the life you desire.
A career is your opportunity to create a life you want to live. A career is not a life, but it should provide you the challenges, opportunities and financial flexibility you deserve to build a life you desire. Your financial needs change with time, your life will demand that you have the financial resources to live, the way you want to live!
Are you on the right track? Do you have the financial flexibility to change jobs, invest in your education, buy a house, have a family or retire? Aligning your financial plan with your career lifecycle can help you understand and commit to your necessary next steps.
So, where are you in developing your financial flexibility?
Investing – Early in your career, in your Acquire Stage of your career lifecycle, you will be investing. Yes, you will likely be spending more money than you are making. Are you in school or getting the required certifications necessary for your desired career? Investing in your career is important, don’t hesitate to take any opportunities to learn and build a strong foundation. Get an understanding of the stock market, how to develop a credit history and how to budget your reoccurring expenses. Good financial habits can last you a lifetime.
Payback – In the Develop Stage of your career lifecycle you are taking your skills and knowledge to the workplace. Exploring industries, organizations and trades. You may change jobs or organizations to find the right fit for you. You are making new friends, maybe changing cities and developing your own financial independence. The investments you made to acquire your skills may be a significant burden to you or your family. This is a time you should start paying off those investments. Little by little, but start now!
Breakeven – As you move through your career, you will find yourself in an industry, organization and role that provides you the opportunities to reach your career aspiration. In this Apply Stage of your career lifecycle, you will need to manage the pace of your career and balance your commitments against your life goals. You may also find yourself exploring new career opportunities, growing your family and making some key investments. You have made significant investments in your career and have begun to claw your way back into the black. Pay off your career debts and begin planning and investing in your life now and after your career.
Wealth Accumulation – the Produce Stage of your career lifecycle can be challenging, but also very rewarding. You will be working hard to achieve your fullest potential and reaching your career aspiration. You will have 20-25 years to “write your career eulogy”. You are producing for your organization, but don’t forget about yourself and your financial needs. Your career earning potential is a combination of your career aspiration and your ability to create value. It is up to you to maximize your earning potential. Invest as much as you can and as wisely as you can. Time is your friend when investing. If you have any ability to save money for retirement early in your career, you could greatly benefit from many years of that investment compounding. Build your wealth and your financial flexibility.
Financial Security – Are you preparing to retire or re-invent your career? In your Transition Stage of your career lifecycle, you have reached your career aspiration and you are deciding what your post-career life looks like. A significant factor in what you choose to do and when, is if you have created the financial security to retire or leave your career for something new. If you have created financial flexibility, you can be confident in your post-career plan. Living without a paycheck can be intimidating. You have had 35 – 45 years to plan, let’s hope you are prepared!
Regardless where you are in your career lifecycle, don’t forget your career is only a means for you to live a life you envision. Building financial flexibility during your career is important to living the life you want to live.
See more career advice in “Own Your Career-No One Else Will”, by Paul R. Goudreault. Available on Amazon and at your local book store.