Clients will tell me they would change careers and start their own business if they had the money. While you don’t need to hit the jackpot to make your dream a reality, you do need to be smart about your finances in order to create a thriving business and life. Here are four smart spending moves that will allow you to afford to make this transition.

1. Eliminate unnecessary expenses from your current lifestyle.

Do you know where your money is going every month? It’s easy to feel overwhelmed about having enough monthly income in the future when you don’t have a clear picture of how you’re spending today’s money. Start tracking your expenses and eliminating those items that you don’t really need or want. Easy places to start would be canceling magazine subscriptions you could do without, reducing your cable bill (are you really watching ALL of those channels?), ending your gym membership and taking advantage of local parks, and eating out half as often.

2. Make a plan to pay down your debt.

Unsecured debt is a huge drain, both financially and emotionally, and makes it very difficult to go through a transition from being employed to owning your own business. Create a plan to eliminate it even if takes you years to do so. Once you start paying it off you will undoubtedly find yourself paying it down more quickly than you thought as you begin to see yourself making a dent in it. I know. I’ve been there!

3. Open a dream savings account.

Once you’ve paid off your debt, open a savings account to fund your transition. Having a buffer to back you up will give you a tremendous amount of peace of mind. Experts recommend saving anywhere from three to six months worth of expenses. Decide for yourself how much of a buffer you need.

4. Keep asking yourself what this career change is worth to you and act accordingly.

As time goes on, continue to scrutinize your expenses. Go through a process of always asking yourself, “Would I rather have this (sweater, shoes, manicure, new iPhone, expensive home) or work for myself doing what I love?” Whether you choose the “thing” or the career, live in integrity. In other words, be sure you’re consciously choosing one over the other because that is what is important to you. Ultimately, this will be the underlying frame of mind you will need to have in order to financially make your new business a reality!

© 2008 Segaric Coaching Inc.

Annemarie Segaric is a respected career change coach, motivational speaker, and the author of the ebook, 107 Tips for Changing Your Career While Still Paying the Bills. Ready to switch careers and don’t know where to begin? Visit www.segaric.com and download your own career change toolkit today!