You may yearn to travel the world. Perhaps you want to backpack across Europe or explore the beaches of South America. On the other hand, you could need a break from work because you are very sick, and you need to take care of yourself. Whatever the case may be, it’s important to plan ahead and budget for your time off. Here are five steps you should take when budgeting for a career break.
1. Ask Yourself What Kind of Career Break You Want?
Are you planning to stay at home and heal or would you like to travel the world? Either way, you’ll want to be very specific about your goals and expenses.
2. Calculate Your Expenses
For instance, how much will your health expenses cost if you aren’t feeling well? If you are planning to travel, you may have to compromise and choose three countries to visit instead of five. It will all depend on your budget. You’ll want to save enough money to pay for all of your flights, wellness services, meals, and lodging.
3. Set Up a Sinking Fund
A sinking fund is a stash of savings that you regularly contribute to. You’ll want to figure out how long your career break will be and start allocating a certain amount of funds to your savings every single month while you’re still working.
4. Find Out How You Can Make Some Money During Your Career Break
Many companies offer generous paid time off. The first thing you’ll want to do is look into your organization’s policies. They may provide you with partial income even if you’re not working.
If you’ve had a child or adopted one recently, you can often receive up to twelve weeks of unpaid time off. This also holds true if you are very ill or if you’re caring for your loved one. If this is the case, your health insurance is usually covered by your employer, and you may be able to receive short-term disability pay.
5. Develop a Re-Entry Plan
It’s certainly important to take that much-needed break, but it’s also essential to plan your re-entry into the workforce. You’ll want to have around six months’ worth of living expenses saved up if you think it might take you awhile to land a new job. Furthermore, it’s important to re-evaluate what your priorities are. For instance, you might be able to travel to Europe for two weeks instead of one month and still keep your current job, so that’s well worth considering.
It’s probably not a bad idea to volunteer or work for a few hours per week so that you can get that dream career you’ve been yearning for when you’re finished with your break. Time off is wonderfully rejuvenating, but the sense of security you’ll feel knowing that you’ll be able to rejoin the workforce will likely decrease long-term stress.