This year has brought career shifts for many people. Some are planned transitions, like stepping away for a sabbatical, starting something new, or taking time to reset. Others happen quickly, like a layoff or an unexpected change in company direction.
Whatever the reason, an income shift often brings up the same quiet question, “Am I still okay financially?”
That uncertainty doesn’t always feel dramatic. It might show up as hesitation around spending, second-guessing your savings, or wondering how long your lifestyle can last.
This is a valuable moment to make a financial plan adjustment that reflects who you are today and supports where you are headed.
In this article, we will walk you through a clear approach to career transition planning, offer practical ways to adapt your finances, and share a mindset that helps you treat this shift as a turning point, not a setback.
The Role of Your Financial Plan During Times of Change
A flexible financial plan keeps pace with your life. It adapts as your career evolves, whether you’re stepping into a new role, launching a business, taking a sabbatical, or simply rethinking what success looks like.
In seasons of change, this kind of plan offers clarity. You know what resources are available, how to adjust your spending or savings, and how to align decisions with your current priorities.
For example, someone moving from a salaried role into freelance work might want to shift how they think about cash flow, quarterly taxes, and short-term reserves. The numbers may look different, but the plan stays grounded in what matters most.
Financial planning is not about locking yourself into a single path. It’s about creating a framework that evolves with your goals and helps you make decisions with confidence, no matter what direction life takes.
Three Financial Areas to Revisit Right Now
When your income shifts, it’s a natural moment to pause and check in with your plan. Not everything needs to change, but a few small adjustments can go a long way in helping you feel more grounded and in control.
1. Cash Flow and Spending Priorities
Revisiting cash flow gives you a real-time view of how your resources are supporting your life today.
Rather than focusing on restrictions, focus on alignment. What are you spending money on that still feels important? What no longer fits at this time?
You might notice recurring expenses that no longer reflect your priorities. For example, a weekly meal delivery service or gym membership made sense during busier months, but now feels less essential. Or maybe you’re still budgeting for school tuition that recently ended. These are the types of habits that can quietly continue even when life moves on.
A few thoughtful changes can free up cash, reduce stress, and help you feel more in control, especially when your income is in motion. That might look like pausing automatic transfers to a secondary savings goal or shifting discretionary spending from dining out to something that supports your current lifestyle, like travel or rest.
2. Tax Strategy and Savings Contributions
When your income changes, your tax picture likely shifts with it. This is a good time to revisit how much you’re saving, where you’re saving it, and whether your tax strategy still fits your current reality.
If your income decreases, you might reduce or pause contributions to certain accounts without losing progress. This could mean scaling back on retirement plan contributions temporarily or shifting focus toward accessible savings for added flexibility. It might be an opportune time to do a Roth conversion or sell highly appreciated assets.
If your income increases, this can be a smart window to revisit your withholding, look at tax-efficient savings vehicles, or plan ahead for a larger estimated tax payment. Even small changes, like redirecting part of a bonus into a SEP IRA or Donor Advised Fund, can have long-term benefits.
Checking in with your financial advisor or certified public accountant during a transition year can help you avoid surprises and make informed adjustments that support your broader financial picture.
3. Goals and Timelines
Career changes often shift your sense of timing. That doesn’t mean your financial goals are off track, but it’s probably a good time to check in on your plan.
Start by looking at what you’re working toward. Are those goals still meaningful to you? Are the timelines you originally set still relevant? For example, you might find that a home purchase or major trip can wait, while something else, like starting a business or taking time off, feels more important right now.
You don’t have to rewrite your whole financial plan. A few updates to timelines or contribution targets can bring your plan back into alignment with your current priorities.
Why Income Shifts Are a Normal and Necessary Part of a High-Achieving Career
Over the course of a long, successful career, income is rarely linear. It rises, falls, pauses, and accelerates, which is perfectly normal.
For many women and entrepreneurs, these income shifts are tied to meaningful choices. You might take time off after a big project, step into something more creative, say no to work that no longer fits, or take a risk on something that feels more aligned.
In fact, career progression often requires financial flexibility and the right mindset. The ability to shift gears without panic is one of the strongest indicators that your financial plan is doing its job.
Income changes do not mean you’ve lost momentum. They often signal that you’re making decisions from a place of clarity and intention. Seen in the right context, they mark a career that’s alive, responsive, and self-directed.
What Most People Miss When Their Income Changes
When your income shifts, it’s natural to focus on spending, saving, and lifestyle. But there are a few less obvious areas worth checking in on, especially if you want your financial plan to stay aligned with the bigger picture.
Insurance Coverage
Career changes can create gaps in protection. If your health, life, or disability insurance was tied to an employer, it’s worth reviewing what coverage you currently have and what you might need to replace or adjust. Even short gaps in coverage can leave you more exposed than you’d like. This is a good moment to make sure your plan still protects what matters.
Estate and Beneficiary Designations
Income shifts often signal a larger life transition, which means it’s a smart time to review your estate plan. Check that your beneficiaries are up to date on retirement accounts and insurance policies and that your will or trust reflects your current intentions. These small updates help keep your plan current and cohesive.
Giving and Legacy Goals
An income increase might open the door to more intentional giving or legacy planning. A decrease might encourage a different kind of generosity, through time, attention, or long-term planning. Either way, this is an opportunity to reconnect with what you want your resources to support.
Your Financial Plan Should Reflect Who You Are
Your financial plan is not a one-time project. It’s a living framework that should evolve with your life, your goals, and your values.
If your income shifts, you get an opportunity to revisit your financial plan, reconnect with what matters most, and use your resources in ways that support this next chapter.
You don’t need to overhaul everything. But checking in, making a few thoughtful adjustments, and talking through the changes with a financial planner can give you clarity and confidence moving forward.
This isn’t about fear or uncertainty. It’s about staying grounded and intentional during a season of change.
If you’re navigating a shift and want to explore how your plan can support what’s next, fill out a short survey and let’s see how I can help you.
Jessica Lanning, CFP®
Email: [email protected]
Phone: (415) 354-5699
LinkedIn: linkedin.com/in/jessicalanning
YouTube Channel: Lanning Financial on YouTube
Lanning Financial Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
