Author Topic: Career Change - How does it affect FI?  (Read 2784 times)

mastrr

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Career Change - How does it affect FI?
« on: November 15, 2015, 09:55:23 PM »
I have given this a lot of thought and  believe that making a career change once I find the right opportunity is the best move.  However, it involves taking a significant pay cut.  I'm interested in your thoughts on the situation and advice from people who have done similar things.

I am currently 28 with a NW around $105k and make around $70k/year.  I live in an area that has a higher cost of living so this income is above average for my age but not great.  With my current company I am in a position where I reached a point where there is little room for upward mobility.  Making this amount would be fine, but I naturally want to accomplish more and not stay in the same field for 20-30 years.

The positions that I am looking at start with a lower salary,  around $35k the first year but have a lot of upside down the road.  Through my research I found that a typical 4 year outlook for someone that is successful could be 35k,50k,70k,100k.  There are opportunities to earn 150k+ in the future and that is common for performers.

So this is a 50% pay-cut for a future pay-off.  I believe my break even point to be around 5-6 years to recoup the opportunity costs that I lose in the switch.  However, if my time frame for retiring is 20 years (low end) it makes financial sense to make the switch.

I'm posting here to see if I am overlooking anything because this would be a big career move.  Any advice that you have on my situation would be great!


Bearded Man

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Re: Career Change - How does it affect FI?
« Reply #1 on: November 16, 2015, 08:39:26 AM »
Is that potential 150K a year job sales by chance? I wouldn't count your chickens before they hatch.

If you don't HATE your job, I'd stick with it and build more net worth right now. I wouldn't take a pay cut like that to POTENTIALLY make 150K a year after 5 years in sales...


mastrr

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Re: Career Change - How does it affect FI?
« Reply #2 on: November 16, 2015, 10:32:02 AM »
It would be sales in the IT industry.  If I thought I was mediocre sales person I would not be contemplating this move.  It almost like I am betting on myself to be successful.  I have a good sales track record so If it doesn't work out I could easily go back to my current field if it doesn't work out.

svndezafrohman

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Re: Career Change - How does it affect FI?
« Reply #3 on: November 16, 2015, 10:52:32 AM »
Your making is sound like you have nothing to lose. You should go for it and leave no regrets. Also, if you are going to make the transition, better to make it when you are younger. But if it was me, i wouldn't make the jump. Are you topped off at your current company, or will there be upward mobility if you switch companies?

Bearded Man

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Re: Career Change - How does it affect FI?
« Reply #4 on: November 16, 2015, 02:49:04 PM »
It would be sales in the IT industry.  If I thought I was mediocre sales person I would not be contemplating this move.  It almost like I am betting on myself to be successful.  I have a good sales track record so If it doesn't work out I could easily go back to my current field if it doesn't work out.

Yeah, but past performance is not indicative of future results. And one economic down turn and IT sales gets hit HARD. Everyone joins these things thinking they are going to make big bucks. Few actually do. You're still counting your chickens before they hatch, giving up a guaranteed salary that is far better than failing at the sales thing.

It depends on how much risk you are willing to take on and how easily you can go back to your old job/industry if it doesn't work out. Set a timeframe for how long you will give yourself to make it in sales and if not there by then, have a plan to go back.

mastrr

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Re: Career Change - How does it affect FI?
« Reply #5 on: November 16, 2015, 04:07:35 PM »
Your making is sound like you have nothing to lose. You should go for it and leave no regrets. Also, if you are going to make the transition, better to make it when you are younger. But if it was me, i wouldn't make the jump. Are you topped off at your current company, or will there be upward mobility if you switch companies?

Yea I'm topped off in my current company besides small increases here and there.  But yes there is a lot more upward mobility once I make the jump and have experience in the field.

mastrr

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Re: Career Change - How does it affect FI?
« Reply #6 on: November 16, 2015, 04:37:48 PM »
It would be sales in the IT industry.  If I thought I was mediocre sales person I would not be contemplating this move.  It almost like I am betting on myself to be successful.  I have a good sales track record so If it doesn't work out I could easily go back to my current field if it doesn't work out.

Yeah, but past performance is not indicative of future results. And one economic down turn and IT sales gets hit HARD. Everyone joins these things thinking they are going to make big bucks. Few actually do. You're still counting your chickens before they hatch, giving up a guaranteed salary that is far better than failing at the sales thing.

It depends on how much risk you are willing to take on and how easily you can go back to your old job/industry if it doesn't work out. Set a timeframe for how long you will give yourself to make it in sales and if not there by then, have a plan to go back.

My salary isn't 70k, thats my total compensation on a average year.  Salary in 50k range.  I'm currently in sales now as well.

Your correct that there is no guaranteed success in the future. However, in general, people who have been successful in the past have the framework to be successful in the future. 

I am absolutely counting my chickens before they hatch. It's about having a vision, goals, and accountability. People fail because they focus their energy more on obstacles than their goals. Doing the right things everyday creates success.


Bearded Man

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Re: Career Change - How does it affect FI?
« Reply #7 on: November 16, 2015, 06:12:35 PM »
It would be sales in the IT industry.  If I thought I was mediocre sales person I would not be contemplating this move.  It almost like I am betting on myself to be successful.  I have a good sales track record so If it doesn't work out I could easily go back to my current field if it doesn't work out.

Yeah, but past performance is not indicative of future results. And one economic down turn and IT sales gets hit HARD. Everyone joins these things thinking they are going to make big bucks. Few actually do. You're still counting your chickens before they hatch, giving up a guaranteed salary that is far better than failing at the sales thing.

It depends on how much risk you are willing to take on and how easily you can go back to your old job/industry if it doesn't work out. Set a timeframe for how long you will give yourself to make it in sales and if not there by then, have a plan to go back.

My salary isn't 70k, thats my total compensation on a average year.  Salary in 50k range.  I'm currently in sales now as well.

Your correct that there is no guaranteed success in the future. However, in general, people who have been successful in the past have the framework to be successful in the future. 

I am absolutely counting my chickens before they hatch. It's about having a vision, goals, and accountability. People fail because they focus their energy more on obstacles than their goals. Doing the right things everyday creates success.
Ah, now we have a more accurate picture. In that case I'd say you don't have much downside but potential for a lot of upside, with a lateral transfer from selling x to selling y. Do it. Now is the time, not when you are tied down.

Altons Bobs

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Re: Career Change - How does it affect FI?
« Reply #8 on: November 17, 2015, 02:02:37 PM »
I was in a comfort zone that I had no reason to change, but I was pretty burnt out at my job then. So I didn't change until layoff hit me. I had no choice but to make a change. My NW was in the 7-figure range, so I could change careers or just FIRE for good. I was young and still had the drive in me, so I started my own business in another field. Lost money the first year, broke even the next, and the 3rd year and up I started making real money. Fast forward 11 years later, I'm making a few times more than what I was making before. I'm having so much fun now and I'm not sure if I'm ready to FIRE yet again. So no regrets here. I'd say go for it!!