How to Financially Plan For Leaving Teaching

Is it possible for former teachers to take a pay-cut?

I've seen many posts on social media about teachers who are dying to leave the profession, The only reason they're not, is because they are worried about taking a pay cut. We all know that teaching doesn't come with a high salary in comparison to other industries- no matter which country you teach in. However, like any professional looking to change careers, sometimes to take a step forwards, you have to take a temporary step backwards.

Having taken steps to successfully leave teaching, finances were a big factor in my decision to leave the teaching profession. Everyone's finances are different and there is no one size fits all. However, financial planning is key.

Full disclosure: I am not a financial expert, but I do have first-hand experience of budgeting having moved countries with a 3 month old whilst on mat leave. We had to save, save, save. I wasn't getting paid by my old workplace anymore as I had left my school to start a new life. We had to live off our savings for a few months. Then, when my husband got a job, we had to survive on one salary- for a whole year! Looking back, I'm not sure how we did it- but we made it happen!

Here are few tips which could help anyone considering taking a pay-cut and leaving teaching for a non-teaching role:

Steps to Financially Prepare for Leaving Teaching

1. Assess Your Current Finances

Start by taking stock of your income, expenses, savings, and debts. Knowing your financial baseline will help you see how much flexibility you have.

Use The Salary Calculator to work out what your new salary will look like after reduction in income tax, pension, student loans etc.

2. Set a Realistic Budget

Create a monthly budget in a spreadsheet that accounts for your current and expected expenses in your new career. You need a good knowledge of your current spending.

Write down

• Current salary

• Rent/mortgage

• Bills- gas, electricity, water, phone, car etc.

• Groceries

• Loan payments or debts

• Health insurance or medical costs

Date/name/amount

Total In, Total Out

3. What Can I Do To Cut Monthly Spending So That I Can Change Careers?

Now you have your monthly budget spreadsheet, look at where you can make adjustments and what you can cut from your monthly spending.

1. Energy bills- Look at switching providers to reduce costs. There are often deals such as cashback for switching.

2. Unnecessary spending- You could argue that some of these are necessary for mental wellbeing - but in my case, a monthly trip to the salon to get my nails done was not necessary (particularly whilst being on mat leave!), buying daily coffees, taking home-cooked food to work rather than buying lunch, regular takeaways, eating out, monthly hair salon visits etc. Boring? Yes! But all these small spends added up quickly.

3. Subscriptions - Cut down on your monthly TV or music subscriptions. Rather than having several monthly subscriptions, see if you can whittle it down to just one or two, and keep adjusting them.

4. Direct debits- Check that all your direct debits are necessary and not coming out without your knowledge e.g. gym memberships, mobile app payments etc.

5. Grocery shopping- Before doing your weekly grocery shop, always write a list of things you need so you are clear on what you're buying. Whenever I walk into a supermarket without a list, I end up buying pointless things. If your grocery shops are generally the same each time, keep your receipt and do a cross-check against other supermarkets online to see which shop works out cheaper.

6. Pay off any debt- If you have any outstanding payments on credit cards, try to pay them faster off by seeing if you can contribute more towards them each month. That way, you don't owe any money.

7. Insurance- You don't need to wait for your renewal date to switch providers. You can save, switch and ditch at any time. Shop around for the best car insurance and home insurance.

3. Build an Emergency Fund

Ideally, you should have 3–6 months’ worth of living expenses saved before leaving teaching. This safety net gives you freedom to transition without immediate financial stress.

4. Side-Hustles

If your new career comes with a lower starting salary, could you look at any side hustles or ventures where your income could be supplemented? I've done a whole blog post about this below for some ideas you may not have thought of yet:

• Side Hustles For Teachers Leaving The Profession

5. Consider Retirement and Benefits

Leaving teaching can impact pensions or retirement contributions. Check how your new role affects long-term savings and benefits, and plan accordingly.

Final Thoughts

Leaving teaching can feel scary, especially when money is involved. But with proper financial planning, you can make the transition smoother and more sustainable. Start by assessing your finances, creating a budget, seeing where you can make cuts and building an emergency fund. Talk to others who have successfully left the profession—they’re a valuable resource.

Remember: planning ahead allows you to focus on the career change itself, not financial stress. Taking control of your finances is the first step toward leaving teaching and stepping into a more fulfilling future!