34: Build a Financial Safety Net for Your Public Sector Career Change - 4 Practical Steps

Find the full transcript at https://spacetoshiftyourcareer.com/34

Imagine you’re a trapeze artist learning a new routine. You wouldn’t practise without a net below you, would you? 

The net doesn’t make the act less brave. It makes it possible.

In the public sector, you’ve likely been performing with a net you didn’t have to build all by yourself. Your employer provided it: steady salary, predictable benefits, pension contributions.

It’s worked well. Until now. When you’re considering a new move, whether that’s because you’re forced to or by choice. 

It requires you to build your own safety net. And that can feel daunting, especially when you’ve never had to do it before.

Building your own financial safety net is about having enough clarity and preparation that you can explore your next act – without panic.

And: It’s about taking back agency.

In this episode, I’ll share 4 practical steps to help you build that net, so you can move forward prepared and more confidently. 

Disclaimer: Please note, I am not giving you specific financial advice. Once you’ve done a first stock take, I encourage you to seek out a professional financial advisor to help you make decisions suitable for your specific situation. 

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Yvonne Davidis helps public sector leaders develop exciting career options that align with who they are now and how they want to evolve in future. 

With 20+ years of moving countries, working for the UK and Denmark across three continents, plus professional coaching certifications, Yvonne is a unique specialist for leaders in the public sector considering their next chapter.

Book a 90-minute Jumpstart Session to clarify your deal-breakers and must-haves for a more satisfying work experience.  

For step-by-step support on your career change journey apply here for Yvonne's 5-month Find Your Career Space programme, and she'll be in touch to invite you to a free discovery call. 

Transcript

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Imagine you're a trapeze artist learning a new routine. You wouldn't practice without a net below you. The net doesn't make the act less brave. It makes it possible. In the public sector, you've likely been performing with a net you didn't have to build all by yourself. Your employer provided it. Steady salary, predictable benefits, pension contributions. It's worked well until now, when you are considering a new move, whether that's because you're forced to or by choice. It requires you to build your own safety net. And that can feel daunting, especially when you've never had to do it before. Building your own financial safety net is about having enough clarity and preparation that you can explore your next act without panic. And it's about taking back agency. In this episode, I'll share four practical steps to help you build that net so you can move forward prepared and more confidently. You are listening to Space to Shift Your Career, a free resource for leaders in the public sector wondering what's next. I'm Yvanda Vidis and I've created this podcast to invite you to explore new paths that reflect who you are now and how you want your career to evolve in the future. I have a talent for creating a high trust space so you can reflect, think out loud and test your assumptions. And I love helping you explore, dream and discover new possibilities for yourself. I moved country several times and I know what it's like to change careers, both within and out of the public sector. And I'm a trained career change and executive leadership coach. I've been working with career shifters as a mentor since 2013. And as a coach since I started my business in 2022. Now subscribe so you don't miss any new episodes. Now let's go. The number one fear public sector leaders have about career change is financial security. I talked about this in episode 7, called the number one fear public sector leaders have about shifting careers. And it makes complete sense. You've built your life around a certain level of income and benefits. People depend on you. You have responsibilities. So when you consider leaving, the financial questions loom large. Can I actually afford this? What if I run out of money? What about my pension, my health insurance, my leave entitlements? These are real practical considerations that deserve serious attention. And here's what I've noticed. Many leaders let these questions stop them before they've even looked at the actual numbers. The fear stays vague, and vague fears are more paralyzing than specific ones. So today I want to help you get specific so you can make decisions from clarity. Here are four practical steps you can take to build a financial safety net. Step number one, know your real numbers. This is about understanding what you actually need. Sit down and look at your finances honestly. What do you earn after tax each month? Where does that money actually go? The fixed cost, your mortgage or rent, utilities and insurance, essential living costs, food, transport, and basic needs, discretionary spending, dining out, subscriptions, entertainment, and savings and investments. What's your absolute minimum? The amount you need to cover essential costs if everything else stopped. When you do this exercise, you might discover something eye-opening. You might think you need your full salary to survive, but when you actually track your spending, you may find your essential costs are likely to be less than your current income. The rest might be lifestyle choices or additional savings or investments you could adjust if you really had to. Or if you decide to create a different career and life for yourself. That realization might change something for you. Suddenly the financial risk might feel much more manageable, but depending on your situation, you might also discover that it is less manageable. Either way, it's important information to understand what your options are. Step number two. Research what you'd actually lose. This step is about getting specific about what leaving would mean for your benefits and entitlements. For your pension, how much have you accrued? When does it best? What happens if you leave now versus later? Health insurance. What would private cover cost? Are there different tiers or options? Leave entitlements. What accumulated leave would you lose? Could you take it as a payout? Other benefits. Professional development budgets, flexible working arrangements, anything else you value. Knowing the real cost gives you power. One leader knew that her pension wouldn't last for another three years, but the difference between leaving now versus waiting was only about $15,000 in total. That's significant, yes, but far from the deal breaker she had imagined. Another leader found that private health insurance would cost about $180 a month. Factored into his budget, it was workable. When you know the actual numbers, you can make informed choices. Then step number three, build your financial runway. This is about creating a buffer for the transition. How much do you need to feel safe while you transition? Some people aim for three to six months of expenses, others want a year. There's no single right answer. It depends on your circumstances, the local market you are in, and your risk tolerance. Start building your buffer now. Even if you're not ready to leave just yet, having a buffer gives you options. You're choosing to stay for now while you prepare. This might look like cutting back on discretionary spending. Given the high cost of living in many countries, you've probably already thought about this one. Do you really use that subscription? How often do you need to get a takeaway coffee, buy lunch or go out for dinner? All these little things add up. Putting bigger expenses on hold. Were you planning to renovate the kitchen or replace your car? Can these things wait until you are on the other side of your career transition or until you have a better sense of how long it will take and your financial situation? Putting bonuses or pay rises if you are lucky enough to get them straight into savings. If you've had a pay freeze for 10 plus years and bonuses don't exist, is there a percentage of your salary you can put into savings straight away the day after you get paid? Then another option under this third step, taking on a side project to build extra income. If you already work full time and have caring responsibilities, you might not have time to do this because you are time poor. But if you have the chance to start something small on the side, now is the time to do it. One of my clients started doing some consulting on the side while still in her government role. By the time she was ready to transition, she had both savings and a small client base to build from. And step number four, consider bridge income options. Career change doesn't have to mean going from full time to zero overnight. They are bridging options, part-time work while you build something new, contract or project-based roles, consulting in your area of expertise, a role in a different sector that maintains income while you explore. The goal here is to give yourself breathing room while you figure out what's next. One of my clients took a similar role in an NGO. Slightly lower pay, but stable enough to live on and to continue saving. That brought her time and headspace to explore what she really wanted long term without financial panic. Building your own financial safety net is about taking back agency. In the public sector, the organization covers a lot of the financial risk for you. Now you're learning to cover it yourself. That requires different skills, planning, preparing, being intentional about money. Once you build that net, you're no longer dependent on one single employer for your security. You become resilient in a whole different way. So here's what I invite you to do this week. Run the numbers. Sit down with your actual finances and answer. What do I need each month to cover essentials? What would I actually lose if I left? Pension, benefits, entitlements. How much of a buffer would I need to feel safe exploring a change? This is about replacing vague fear with real information. When you know your numbers, you know what you're dealing with, you can plan. And when you can plan, fear loses its grip. Please note I'm not giving you specific financial advice. Once you've done a first stock take, I encourage you to seek out a professional financial advisor to help you make decisions suitable for your specific situation. Until next time, make space, rediscover you, and then take action. Thank you for listening today. You care about solving real problems and making a difference. And you feel it's time to figure out in what way you can do that in the next chapter of your career. Learn more about how I help leaders in the public sector break through four limiting beliefs about shifting their career. It's space to shiftyourcareer.com. And if you're getting value from this podcast, please do share it with other public sector leaders who are considering what's next for them.