In a world that often glorifies the hustle, the idea of stepping back from your career for a mini-retirement may seem unconventional, yet it can be a transformative journey of self-discovery, skill enhancement, and personal fulfillment. Imagine the freedom to explore your passions, recharge your spirit, and reposition yourself for success in an ever-evolving job market.
However, the act of quitting your job without another lined up or temporarily leaving the workforce and taking a mini-retirement (aka unpaid sabbatical) is not a decision to be made lightly. It definitely requires long-term planning, self-awareness, and mental and emotional strength. However, if you take the time to plan for this financially, mentally, and emotionally it will be worth it.
The three big questions you’ll need to ask yourself before taking this leap:
What would you do with all this freedom of time?
I have always wanted to be a business consultant. Consulting would enable me to work on interesting and challenging projects while partnering with companies across the U.S. With my LLC formed, it was time to strategize and execute my plans.
I wanted to use my time as a consultant to prepare for the inevitable changes happening in my industry. With new technologies emerging constantly, along with trends like automation, globalization, outsourcing, and discussions about AI’s impact on the future of jobs, I also aim to acquire new skills and knowledge that are future-oriented. These in-demand skills should qualify me for new roles within my current industry or open up opportunities in other fields.
Additionally, I have always wanted to travel. However, due to my financial priorities, the pandemic, and limited PTO, I postponed checking off my travel bucket list until November 2023. Thankfully, my first international vacation was a positive experience, inspiring me to visit other “bucket list” destinations during my time off.
The remainder of my time will be spent enjoying simple pleasures, such as slow mornings, freshly made breakfasts hot off the stove, and spending more time with family and friends. I also plan to prioritize self-care as the first thing I do each day, instead of rushing out the door to clock in on time at the office.
How long will this be for?
Given my plan for this unpaid sabbatical, I needed at least two full years. Of course, I would reevaluate my situation as I approached the end of my first year. This time frame was long enough to recover from any burnout I may have experienced and to achieve the goals I laid out in my plan, while also being short enough to remain relevant in the workforce.
This is not to say that an individual cannot take more time off. Many people do, especially when raising their children, and they often have no issues re-entering the workforce due to their industry knowledge and skills. Remember, no one can take your education, skills, or knowledge away from you. Your resume is yours for life.
The amount of time you plan to take will impact your finances. Therefore, this time frame is essential for creating a budget that you can stick to, as you will no longer have any income coming in. For individuals who lack a financial support system—such as a supportive spouse or parents—effective financial management becomes even more critical. Planning and budgeting wisely will be key to successfully navigating this endeavor.
Are you financial prepared to leave your job for your determined period of time?
When I began my journey of aggressive saving, my initial focus was on preparing for parenthood. Although many spouses provide financial support during the child-rearing years and contribute to spousal IRAs, I wanted to ensure that I would still be on track for retirement despite the potential loss of income from dedicating several years to raising toddlers. To achieve this, I not only contributed to my Roth IRA and 401(k), but I also made a point to allocate funds into a brokerage account. This strategy allows me to invest in assets that I can access before the age of 65 if needed.
Through careful planning of my savings and investments, I reached a pivotal moment where I decided to confront my fears and embrace a less conventional path.With a firm grip on my savings and a diverse portfolio carefully cultivated over time, I made the daunting decision to step away from the comfort of a traditional career path. Acknowledging the myriad of uncertainties that lay ahead, I resolved to embrace a more unconventional route, one that promised not only challenges but also the opportunity for deeper personal and professional satisfaction.
What is your strategy for re-entry into Corporate America?
Depending on your ambitions, passions, financial situation, and where you are on your wealth-building journey, it’s essential to have a plan for potentially returning to Corporate America. This may involve staying connected with your current network, developing new in-demand skills, and preparing a solid explanation for any gaps in your resume.
There are various reasons individuals may take time off from work, including child-rearing, health challenges, caring for a sick family member, or pursuing a career change. Providing a clear and thoughtful explanation for these gaps can reassure prospective employers of your commitment and capability to succeed in a new role. This is essential when demonstrating your readiness to engage in a new professional opportunity. A well-thought-out explanation can instill confidence in your ability to commit to and excel in a new job, which will be important to prospective employers.
Conclusion
Embracing a temporary departure from the workforce doesn’t just require courage; it demands foresight and a well-crafted plan. By addressing critical questions about your motivations and objectives, you can turn this life-altering decision into an opportunity for growth and reinvention. As you prepare for your eventual return to Corporate America or a new venture, remember that this time off can serve not just as a break, but as a powerful stepping stone toward a more fulfilling and successful future. After all, taking time for yourself is not just a pause on your career—it’s an investment in your life. Once you’ve addressed these questions, you can start thinking about the best time to leave your job and successfully implement your plan.