As a woman, chances are you will go through many life stages. Some stages will require you to completely change your financial plan while others will require just small adjustments to the strategy.

There are many reasons why you may be seeking a career change. Perhaps it is because you need a more flexible schedule, or potential for more growth. Regardless of the reason, the reality is many people change careers, often times more than once. With proper planning, you can transition into a fulfilling new career without sacrificing your financial security.

Work with a Professional Coach or Career Counselor
Working with a professional coach or career counselor can ensure you are pursuing a career that is in alignment with your individual needs, goals and overall life vision. Professional coaches and career counselors can help you explore your abilities and interests, clarify your life and career goals, help you decide whether you should find a new career, and teach you job-hunting skills.

Review your Financial Plan
The best way to plan for the financial impact of starting a new career is to plan early. Don't quit your present job until you've determined how you will survive financially during your career transition. In particular, review how changing your career will affect your income and expenses, impact your cash cushion, and reduce or increase any debt you have. Determine if you can afford to be out of work if you cannot find a job or decide to go back to school.

Go Back to School
Sometimes you may have to go back to school to gain the education you need to pursue your new career. If you go back to school, figure out how you will pay for your education. You may be eligible for grants and financial aid. In addition, if your income is within certain limits, you may be eligible for a Lifetime Learning tax credit each tax year. You may also be able to deduct interest paid on qualified higher education loans.

Re-evaluating your Insurance Coverage
Consider how starting a new career can affect your insurance coverage. For instance, you will likely lose your employer-sponsored health insurance coverage when you resign from your present job. Although you may be able to continue coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA) for 18 months, it can be expensive to do so. If you have a disability insurance policy, consider the impact that changing your career may have. Your ability to get disability coverage and the premium you pay depend, in part, on your occupation. So, if you switch careers, your disability insurance coverage may be affected.

Negotiate Your New Salary
Women tend to be averse to negotiating salaries. Don't sell yourself short. Authors of Women Don't Ask: Negotiation and the Gender Divide, Linda Babcock and Sara Laschever state, "Men ask for what they want twice as often as women do and initiate negotiation four times more." Women still earn $.77 for every $1 earned by a man and are out of the workforce on average 11 years taking care of children and dependents.1 You cannot afford to be missing out on extra dollars earned. Make sure you ask what you are worth by negotiating your new salary.

Enroll in New Employee Benefits
Once you start your new position, make sure to evaluate all the benefits your employer offers. Take advantage of group health insurance, health savings accounts, group disability and life insurance and other fringe benefits offered.

Continue to Save for the Future
Continue to save for retirement. Once you change careers make sure to enroll in your new retirement plan right away. If your new employer does not offer a 401k plan consider saving into an IRA. Strive to save 10-20% of your income toward retirement.

Source:
1. US Census Bureau, Women's History Month - Facts for the Features, March 2011. Published January 26, 2011

This post was contributed by Brittney Castro, a Los Angeles CERTIFIED FINANCIAL PLANNER™ practitioner and founder of FinanciallyWiseWomen.com. Brittney Castro, CFP™ specializes in working with busy professional and entrepreneurial women who are passionate about life and want to gain clarity around their money. Brittney's mission is to help women plan and create the life of their dreams, free from anxiety about money. Brittney Castro is not affiliated with www.Witi.com. Brittney A. Castro is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. California Insurance License #0F33895. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.