Following The Dream, Or Fixing The Finances?
Following on from my article about small businesses this week, I’ve been thinking a lot about the cost of pursuing the road less taken. Myself, and lots of my friends, are currently in the position of establishing our long-term careers. We’ve just finished uni, dispensed with our part-time jobs, done our summer traveling or exchanges and have to make some decisions about where to next. Of course, for my generation, there is a high chance we will change careers a couple of times. But at this point is it worth trying to establish ourselves in jobs that are emotionally fulfilling, but not necessarily well-paid? And what effect might that have on our long-term financial stability? And, finally, are there ways to follow your dream without undermining your finances?
More Education
The first of many options is further education. Tertiary education can be a great experience, and research shows that people with qualifications tend to earn more over a working lifetime. That said, often that kind of research doesn’t seem to take account of super and (of course) the cost of actually paying for those extra years at university. If your dream is to get a Masters or PhD, you’re likely to find a lot of job opportunities open up afterwards. To mitigate the extra costs of the education, why not look for a job in your field- especially one with good super contributions, so you don’t lose years of interest accumulation. Ensure you roll all your super into one fund, so as to avoid unnecessary fees and maximise your interest. Similarly, in order to offset those years out of the workforce, think about making voluntary contributions. As a student, you’re likely to come under the income threshold, where the government will match your contributions dollar for dollar, up to a thousand dollars.
Living Overseas
For a lot of people, a couple of years working overseas represents a huge dream. And while it’s an amazing experience, overseas adventures such as the two-year stint in the UK can represent a gap when it comes to long-term financial stability. The chances are you might end up working outside of your field- after all, the pubs of England would appear to be manned by twenty-something Australians. The choice can seem to be between sticking it out in your own country and maintaining your finances, or accepting a little less financial stability and taking a couple of years out of career-building in order to have a great time OS. But the choice doesn’t necessarily have to be that stark. For instance, you could consider job-hunting with overseas postings in mind. There’s no need to hide it from a potential employer- find a job with global branches and put yourself out there. You’ll retain your benefits, continue to build a career and spend some time learning the ropes elsewhere.
Creative Industries
This is where my particular situation comes in. In my early-twenties, the choice is between continuing to work in the creative industries- a fulfilling but not well-paying job- or retain it as a hobby and look for a better paying job elsewhere. The choice is, of course, entirely personal, and can be changed at any point. In order to not be financially unstable, it’s important to set up a couple of procedures. Should you decide to pursue your creative career, there are a couple of steps you can take to mitigate the uncertainty of the finances of your dream. Firstly, set up a savings account for your tax and stick to it. You’ll have no employer to take it out for you, and you don’t want to be stung at the end of the financial year. Setting up voluntary superannuation is also a great idea- again, no one will be doing it for you and you’ll need to contribute more consistently throughout your working life than those in steady nine-to-five employment. In all of these examples, know your limits and know to call it a day should you hit them. Following your dream is an amazing thing, but not at the expense of your health or financial security after retirement. Be smart, be disciplined, and know what you want.
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