Retraining for a different career can mean paying course fees while earning less, particularly if you reduce your working hours to study. Before you resign or enrol, separate the full costs of making the move from the income you’ll need once you’re working in the new field.
A move without formal retraining still needs that distinction. A gap between jobs is a temporary expense; accepting a lower starting salary could affect the household budget for considerably longer.
Work out how long the savings need to last
Course fees are only one part of the cost of studying. There may be equipment to buy, travel to placements or hours of paid work you can no longer fit in. Add those costs to your ordinary expenses so you can see what the transition would require from savings.
The period after qualifying deserves attention too. Finishing a course doesn’t guarantee that a suitable job will be available immediately. Research entry roles and advertised pay, and allow for the possibility that finding work will take longer than you hope.
Check whether parts of the move could be staged. Keeping some paid work while studying, or saving before enrolling, changes when you need the money. Confirm that the course timetable and any placement requirements actually allow the working pattern you’re considering.
If you share finances, discuss how long the household could manage on the expected income. A partner covering more bills for a few months is a different commitment from supporting several years of study. Agree on when you’ll review the arrangement, particularly if plans change.
Compare the work behind the pay figure
Check whether an advertised salary includes super or has it paid on top. Compare the hours as well. A role with a higher annual salary may leave you earning less per hour if it regularly involves longer working days.
The employment arrangement matters. A contracting fee needs to cover costs an employer might otherwise meet, and contractors generally don’t receive paid annual or sick leave. Work out what time away from work would mean for your income before comparing a daily rate with an employee’s salary.
Changes to commuting and childcare can also alter what the new income buys. Ask about working hours and location before assuming a flexible role will reduce either expense. An early start can mean paying for before-school care even when you finish work earlier.
A financial adviser can help assess how a period of lower earnings would affect other plans, including retirement or a planned reduction in debt. Bring realistic figures for the move, rather than relying on the salary you hope to earn eventually.
Check insurance before leaving
Review any insurance provided through your employer, as well as cover held in super. Ask when employer benefits end and whether existing policies suit the occupation you’re moving into. Your occupation can affect the terms of your cover, even if you keep the same fund.
If you’re taking time out to study, ask your fund or insurer how that break affects your cover. Get the position confirmed before the break begins, while you still have time to investigate any gaps.
