How to take a career break without financial stress
What's the story
In India, taking a career break for education, personal reasons, or travel, is a big financial decision that requires careful planning.
The key to a stress-free sabbatical lies in ensuring financial stability.
This article shares practical savings strategies to help you navigate a career break without financial stress. A strong financial foundation will let you make the most of your time off work.
Tip 1
Start an emergency fund early
Before even thinking about a career break, you should first establish a strong emergency fund.
You should aim to save at least six months' worth of living expenses. This fund will serve as your financial safety net, covering unexpected costs that may arise during your break.
So, if you spend ₹30,000 a month, make sure you have at least ₹180,000 in your emergency fund before you jump.
Tip 2
Explore short-term investments
Putting your money in short-term investment options is a great way to maximize your savings during a career break.
Choices like fixed deposits or liquid mutual funds give you better returns compared to regular savings accounts. Plus, you get the flexibility of withdrawing your money without huge penalties.
This way, your money works harder for you, making it easier to cover expenses while you're taking a break from work.
Tip 3
Cut down on non-essential expenses
Cutting back on non-essential spending is key when preparing for a career break.
Begin by analyzing your monthly expenses and pinpoint areas where you can reduce spending.
For instance, eating out less often or choosing budget-friendly entertainment alternatives can substantially lower monthly costs, enabling you to save more for your career break fund.
Tip 4
Consider freelance or part-time work
Engaging in freelance or part-time work during a career break keeps you productive and provides a supplementary income.
Platforms like Upwork and Freelancer present a plethora of opportunities across disciplines, tailored to your skill set.
This approach alleviates the financial stress associated with not working full-time, facilitating a smoother transition back into the workforce when you're ready.