Finance

How to Manage Money during a Sabbatical

Lots of people take sabbaticals as a career break or as a chance to do something that they always wanted to do but which would divert their attention completely away from their job. The number one concern at the prospect of a sabbatical is how you are going to manage your finances. No one who lives paycheck to paycheck can survive this.

Savings

The first thing that you should consider is how you are going to pay for all your needs. The simple solution is to save for the length of time that you are going to be taking leave from work. Most people actually plan for this. They go frugal and save up enough that would last them at least a year, till they find themselves again and either return to their old job or be inspired to try something new. In any case, a sabbatical isn’t wasted, and that should be motivational enough to save for the whole thing.

People with Spouses

If you are currently a dual income family and your partner would have no trouble taking care for the both of you, you can take a sabbatical the very next day. What you do have to make sure of is that you discuss this big decision that you want to take with your partner. You can even talk about how long you plan to take leave from work and that if it is okay with them. This way the other person won’t feel burdened, and the discussion where you get a second opinion would give you strategic pointers on how to go about it.

Income without Work

It becomes a lot easier to go on a sabbatical if you have a side income, anything that can support you through the time you are not working. A great thing about a steady income your way is that you do not have to spend time saving for the sabbatical before you take it. People take leave all the time and are taken care of by website revenue, dividends from investments, or income from a property they put on rent.

Getting an Emergency Fund

So you probably calculated how much food and bills would cost you, what you forgot to calculate was what if there was an emergency. It is difficult to calculate for emergencies. The best way to go about it is to work on accumulating a separate fund for this. Call this your emergency fund and do not touch it no matter what. If you find that you do not need it, you can always make use of it as part of your savings, once you start working again.

Part Time Work

People on sabbatical do seek out part time work if they want to. You can do this too; there are so many things you can earn from, such as house sitting, freelancing, minor consultations, baby sitting etc.