You dream of quitting a poisonous job, pivoting to a brand new profession, or beginning your individual enterprise. However there’s a monetary actuality to such a transfer: are you able to afford to earn much less?
In 2021, I give up a job as an govt at a tech firm. I pivoted into content material advertising and journalism, and, initially, I used to be incomes about one-third of my earlier wage. However I had spent months taking a look at our family finances, and was ready to earn even much less.
Whenever you’re decided to make a change, you’ll have a look at your funds in another way. It is best to calculate your “freedom quantity” and perceive the modifications it is advisable make in your finances.
{“blockType”:”creator-network-promo”,”information”:{“mediaUrl”:”https://photos.fastcompany.com/picture/add/f_webp,q_auto,c_fit/wp-cms-2/2025/04/workbetter-logo.png”,”headline”:”Work Higher”,”description”:”Ideas on the way forward for work, profession pivots, and why work should not suck, by Anna Burgess Yang. To be taught extra go to workbetter.media.”,”substackDomain”:”https://www.workbetter.media”,”colorTheme”:”blue”,”redirectUrl”:””}}
Remember the fact that your freedom quantity is not your remaining vacation spot. It’s a transitional change in your revenue to pursue the profession you need.
Why your freedom quantity issues
Your freedom quantity is the naked minimal it is advisable cowl your necessities: hire/mortgage, groceries, insurance coverage, utilities, and so forth. It’s not the identical as what you’re spending to assist your present way of life.
Calculating your freedom quantity forces you to consider what you’re keen to surrender—even quickly.
Let’s say you’re incomes $100,000 in the present day and assume it is advisable earn $80,000. However when you undergo the numbers and minimize every part nonessential, you may discover that the quantity is way under $80,000. Understanding that makes it simpler to navigate a profession change, as a result of you recognize what you want to get by.
The naked minimal is your freedom quantity.
Closing the hole in your freedom quantity
For those who don’t assume you’ll earn sufficient to cowl your month-to-month bills, there are methods to shut the hole between your revenue and your freedom quantity.
You may construct up some financial savings and draw from that account if you make your transfer. Or you would complement your revenue with a facet hustle.
Once I first modified careers, I took a brand new full-time job and freelanced on the facet. The mix of my new wage and my freelance earnings helped me attain my freedom quantity. It meant working within the evenings and on weekends, nevertheless it was value it to make the change.
Remember the fact that a decrease revenue is perhaps momentary. Inside eight months of beginning a brand new profession, I took a brand new job at a a lot greater wage. I simply wanted to get a bit of expertise on my resume, after which many extra doorways opened for me.
As you agree into your profession change and earn extra, you possibly can add again the stuff you loved about your way of life. The momentary squeeze is value it to discover a freedom quantity that makes quite a lot of profession choices potential.
{“blockType”:”creator-network-promo”,”information”:{“mediaUrl”:”https://photos.fastcompany.com/picture/add/f_webp,q_auto,c_fit/wp-cms-2/2025/04/workbetter-logo.png”,”headline”:”Work Higher”,”description”:”Ideas on the way forward for work, profession pivots, and why work should not suck, by Anna Burgess Yang. To be taught extra go to workbetter.media.”,”substackDomain”:”https://www.workbetter.media”,”colorTheme”:”blue”,”redirectUrl”:””}}
