Financial Planning for Your Career Break
It IS possible to save the $’s to take a career break. Where do you start? We interviewed a few financial experts about how to go about saving for your break. Sit back and be inspired!
What’s Your Number? featuring Career Break Vets Warren and Betsy Talbot:
We know that MOST Financial Advisors would tell you that you are crazy for wanting to take break from work to travel. After all, it will cut into your retirement savings; however financial expert, Debbie Whitlock, doesn’t think you are crazy. In fact – she’ll give you advice on how to go about financially planning for such a big trip. She understands the desire to take a break and won’t talk you out of it!
Sherry Ott talks with Financial Advisor Debbie Whitlock about how to start saving, tracking your spending, and creating a budget for both your career break and re-entry without dipping into your retirement funds. (Runtime – 14:04)
Transcript Part 1
1:10 – How far out do you have to start financial planning for a career break? Depends on:
- Debt carried
- Current cash reserve
- How much stuff you have
- How long is the break
- Must do your research first!
- Overall range is 9 to 24 months to start saving
4:25 – What are the steps to creating a career break financial plan?
- Budget – you have to know inflow and outflow of your money presently
5:55 – Find the missing money, it can become the key to the kingdom!
6:40 – Track every penny for 30 days
7:55 – Start making changes in spending – alternative ways to socialize
9:00 – Look at your current cash position and what it is allocated for
10:15 – Figure out where you are going to travel and create your daily travel budget
10:55 – Don’t over look the cost of re-entry
12:00 – Don’t go backwards! Once you identify where you can cut back – don’t absorb it back into your life – keep it separate!
13:10 – The planner vs. the non-planner
- There are different types of people who go into career break travel; however both types still need to do a little front-end work when it comes to budget.
FINANCIAL PLANNING – PART 2
Sherry & Debbie discuss some financial myths, how to supplement your income on the road, budgets for different circumstances and working with your financial advisor. (Runtime – 13:39)
Transcript Part 2
00:10 – Do you have to sell everything you own or dip into retirement money? It is an extreme to sell everything you own, and not always necessary.
1:15 – Take a balanced approach which may mean a bit of delayed gratification and more thoughtful planning.
2:40 – You can consider working during the career break to support your travel budget
3:50 – What if you have kids or a spouse/partner – do you need to financially plan differently?
5:00 – Need to consider what the potential additional costs with kids
6:45 – How do you engage your current financial advisor in this career break discussion?
8:10 – What do you do if your advisor doesn’t think it’s a good idea?
9:15 – Meet with your advisor regularly and consider how you will communicate when you are on the road.
10:50 – How do you know that you have the right financial advisor to be your partner in this venture?
12:30 – We are a different generation and therefore we look at things differently – including our finances.
Leah on Mon, 6th Jun 2011 8:12 am
I really enjoyed reading your post. I am thirty-two soon and have itchy feet that are ready to try out foreign soils.
It is a fear of leaving the security of the day to day grind of paying the bills and living a safe and non-challenging way of life that has put me on hold for some time.
I hope (as it has I) your post will inspire others to go and follow their bliss – Leah 🙂
Patricia GW on Mon, 6th Jun 2011 8:54 am
Travel and experiencing a new culture really has put it into perspective, and filled that void with purpose (and joy).
In three weeks I’ll be moving to Paris myself for one month. I have the same feeling – the incredible surreal realization that I’m going to be living there…. it’s thrilling!!
Abby on Mon, 6th Jun 2011 2:11 pm
Oh, Jenny! Escargot isn’t palatable — it’s delicious! I love your writing style; it’s so fun and energetic. Can you believe how far we’ve come? Everyone, Jenny and I were in the exact same industry and have known each other online and via work emails for years and years. But we’ve only met once, many, many years ago. And one of those jobs she was sleeping next to her BlackBerry for was one I’d just left. And now she’s 33 and living abroad, just like I was last year. Kindred spirits. Jenny, you’re a true inspiration — I can’t wait to see how your adventure unfolds!
Debbie Beardsley on Mon, 6th Jun 2011 3:22 pm
Your life in Paris sounds ideal. It is nice to read about people who follow their dreams instead of wishing they had! Enjoy the rest of your journey.
Terriaw on Tue, 7th Jun 2011 1:40 pm
Wow, fabulous and well said! I love your new outlook on like. After experiencing career burnout and feeling a little lost and purposeless lately, you have encouraged me. I look forward to seeing Paris someday!
Jenny on Tue, 7th Jun 2011 6:50 pm
merci for all the sweet comments! @abby we are soooo kindred spirits! well except when it comes to our differing feelings on escargot…;) and congrats patricia on the move! thrilling indeed!
shawna on Thu, 9th Jun 2011 1:32 am
you’ve reawakened my travel bug. must. return. to. france. (someday.) eat a croissant for me!
Weekly Travel Blog Links — LandingStanding on Mon, 13th Jun 2011 6:16 am
[…] how badly I want to go to Paris… If only we could afford living there for an extended period of time during our travels! Any […]
G. Michael Schneider on Sun, 19th Jun 2011 3:36 pm
I am a firm believer in living and working overseas, just as you described. However, many of us actually like our jobs and our homes and are simply looking to renew and refresh our lives, not change it. However, you can have the same type of cultural experience without having to reach into your own wallet and without having to quit your day job–by taking what I call a “working vacation.” My wife and I have done this 15 separate times, from Australia to Zimbabwe, Turket to Tibet, Mauritius to Mongolia. I describe how to do it in my blog otherguysdime.wordpress.com and via Twitter at @otherguysdime. Learn how to have fun without having to have burn any of your bridges behind you.