Here’s how to take a half a year off work without going broke.
Updated: 7 hours ago
Original article by:
Leah Golob
THE TORONTO STAR
March 21, 2022
📰 Read the FULL ARTICLE here.
I spoke with the Toronto Star about how to plan financially for a sabbatical so you don't come home broke. Here are the highlights and my contributions.
Key Takeaways
Sabbaticals aren't just for academics anymore; professionals in many fields are taking extended time off for personal reasons, and LinkedIn has even added a career break option to profiles.
Most sabbaticals aren't employer funded, and some people won't have a job waiting when they return, so planning is largely do-it-yourself.
Figure out exactly how much you need each month by reviewing three to six months of bank statements, and budget for extra months in case you don't have work lined up.
Keep making at least minimum debt payments and saving for retirement during your time off, and build a bigger buffer if you'll be travelling.
Stick to the plan once you're away, since overspending early can quickly turn a three-month break into a two-month one.
My Perspective
A sabbatical should leave you refreshed, not financially stressed. Without a plan, the mental benefits of time off can disappear the moment you realize you're broke or going into debt.
"To take a sabbatical and only end up in an awful place financially is counterproductive."
Many of my millennial clients feel shut out of the housing market, so they're rethinking what to do with savings they once set aside for a home. Often, that means finally taking extended time off to travel.
"It usually ends up being something like, 'that dream I had to travel to Europe for half a year is now a reality now that I'm not buying a house.'"
I support that change of plan for clients who prioritize travel or anything else that requires time off. I also encourage them to put some of those savings toward getting a leg up on retirement.
Originally published in the Toronto Star by Leah Golob on March 21, 2022. Use the link at the top of this post to read the full article.
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