1339: [Part 2] What is a Sabbatical? And How to Prepare for your Time Away from Work by Anne-Lyse Wealth with Marriage Kids and Money

[00:00:00] This is Optimal Work Daily, Episode 1339. What is a sabbatical and how to prepare for your time

[00:00:06] away from work? Part 2 by Anne Lees Wealth with MarriageKidsAndMoney.com. And I'm Dan,

[00:00:13] I am your host of the show, back with you once again to share part 2 of this post that I

[00:00:17] started yesterday. So if you haven't listened to episode 1338 from Thursday, I would recommend

[00:00:23] you doing that first so you're all caught up. But if you're ready to go, let's hear part 2

[00:00:29] as we optimize your life. What is a sabbatical and how to prepare for your time away from work?

[00:00:38] Part 2 by Anne Lees Wealth with MarriageKidsAndMoney.com. Other Living Expenses

[00:00:46] To prepare financially for a sabbatical, you need to have a clear vision for your sabbatical.

[00:00:50] You should have a good handle on the cost of living in the area you will be staying.

[00:00:54] To achieve that, assessing the cost of food, transportation, utilities, other necessities,

[00:01:00] travel, entertainment and any activity you want to include during your sabbatical is necessary.

[00:01:06] Budgeting Once you have an idea of the cost of living, you can create a budget for your

[00:01:11] sabbatical to evaluate the total cost. That information can help you decide if you want to

[00:01:15] opt for a couple of months or if you can afford to take a year-long sabbatical. You

[00:01:20] can use a budget app to create a budget, manage your money and stay on track during your

[00:01:24] sabbatical. Setting Money Aside

[00:01:28] Now that you have enough information to estimate how much your sabbatical will cost,

[00:01:32] you can start saving for the sabbatical expenses. This helps to ensure you have

[00:01:36] an adequate emergency fund to cover unexpected costs. Taking a close look at your monthly

[00:01:41] expenses can help you identify areas to cut. This could be housing, subscriptions, dining out

[00:01:47] or entertainment. Earning extra income at work or through a side hustle can help you reach

[00:01:52] your savings goal faster too. To avoid accessing those funds for unnecessary reasons, consider two

[00:01:58] separate accounts for sabbatical savings and for your emergency fund. Saving for a 6 to 12 month

[00:02:04] emergency fund will give you peace of mind. If you decide you can't return to work,

[00:02:08] you have options. Life Insurance

[00:02:12] If you have dependents or assets, you want to ensure that your life insurance will not lapse

[00:02:16] during your sabbatical. The best time to shop for life insurance is when you already

[00:02:19] have coverage. If you have life insurance through your employer, now's a great time to research

[00:02:24] options outside your company. If your sabbatical is unpaid, you will lose your life insurance

[00:02:29] coverage once your sabbatical begins. That is unless you elect to pay higher premiums through

[00:02:34] Cobra. Being proactive now to ensure coverage outside of your place of employment will help

[00:02:39] you secure more reasonable premiums. What Can I Do on My Sabbatical?

[00:02:44] A sabbatical gives you the time to learn new skills, travel around the world, volunteer,

[00:02:50] spend time with loved ones, explore new interests, whether personal or professional,

[00:02:56] and do anything that interests you. It's the opportunity to reset the clock and do what you

[00:03:01] choose to focus on. You define what you want your sabbatical to look like and what you

[00:03:05] want to gain from it. Whether it's a break from your current life or the ability to start

[00:03:10] on a new path, it's up to you. Outside of my own sabbatical story, here are a couple more.

[00:03:19] Okyoma felt strongly that she wanted her kids to enjoy some of the experiences that she had

[00:03:24] had growing up. Experiences like traveling the world, attending an international school,

[00:03:28] and being exposed to different cultures. Through conversations with her employer,

[00:03:33] Okyoma was able to start a sabbatical. While on her sabbatical, she happened across

[00:03:37] an opportunity to join a company that does more humanitarian work. This called to her heart and

[00:03:43] her desire to broaden her children's horizons. Now, her family lives in Costa Rica with a lower

[00:03:48] cost of living, and she's able to support a cause she believes in.

[00:03:55] Jacob and his family were going through medical difficulties and were also doing some

[00:03:59] house shopping at the same time. It was too much, and one day Jacob got overwhelmed and

[00:04:04] had a breakdown. He realized he was overwhelmed with life and needed change. When Michelle and

[00:04:09] Jacob realized that there was a chance they could change their lifestyles, there was no turning back.

[00:04:15] Before, they used to fantasize about going on an RV trip, but now they were going to make

[00:04:19] it happen. Jacob did the numbers and had to make a decision to rent or sell the house.

[00:04:24] After some thinking, they decided to sell the house and everything they owned so they could

[00:04:28] take a long trip in an RV. It turned into a year-long adventure, and they eventually

[00:04:33] settled in a lower cost of living area that gave them more time to do work they love and be with

[00:04:38] family. Final thoughts. Proper planning is necessary if you are interested in taking a

[00:04:44] sabbatical, whether for personal or professional reasons. It's essential to reflect on what you

[00:04:49] want to gain from this experience, your vision of a successful sabbatical, and how you can

[00:04:54] use the experience to enhance your resume. Having a clear idea of what you want to accomplish

[00:04:59] during your extended leave from work is an essential first step. Doing the proper research

[00:05:03] before talking to your employer about your plans can help you get your sabbatical approved.

[00:05:08] Assessing expenses and setting enough money aside so you're financially prepared will help

[00:05:13] you make the most of the experience. You just listened to part two of the post titled,

[00:05:22] What is a sabbatical? And how to prepare for your time away from work by Ann Lees-Wealth

[00:05:27] with marriagekidsandmoney.com. We're driven by the search for better, but when it comes to hiring,

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[00:06:35] And thanks again to Ann for this great post, which we've now heard in its entirety.

[00:06:39] And I told you a little bit about Ann in yesterday's outro. So today I want to tell

[00:06:42] you about Andy Hill, who actually runs the site that this is from marriagekidsandmoney.com.

[00:06:48] Andy Hill is a husband and father to two awesome and crazy kids,

[00:06:52] and they hail from the great state of Michigan. His goal is to give his family

[00:06:56] the best life possible and strengthen their family tree for generations to come.

[00:07:01] In 2016, he got so geeked about this topic of young family finance that he decided to start

[00:07:06] a blog and podcast about it. It began as a hobby and then morphed into a fun side hustle

[00:07:11] when people started to enjoy the information he was sharing. Fast forward to today, he's left

[00:07:16] his corporate event marketing career behind and is now a full-time blogger and podcaster who's

[00:07:20] been featured in major media outlets like CNBC, Kiplinger's Personal Finance, and NBC News.

[00:07:27] So come by marriagekidsandmoney.com to learn a lot more. And if you enjoy their content,

[00:07:32] you can hear more from them on Optimal Finance Daily. And with that, we've reached

[00:07:36] the end of another installment of Optimal Work Daily. I do hope you enjoyed this post

[00:07:40] and that you'll be back again with me tomorrow where your optimal life awaits.