The #1 question I get asked is “how do you afford to take 6 months off to travel?”
Honestly, I’ve thought about it similarly to any other major financial goal. Whether it’s a car, a home, or something else, you figure out what it will cost, decide whether it’s a priority for you, and save toward it.
In my case, what I’m “buying” isn’t a physical thing. It’s time.
I hesitate to say the answer is simple, because saving a significant amount of money certainly isn’t easy. But ultimately, I was able to do this because I had been intentionally saving during my last six years in Corporate America for the possibility of taking time off someday. So, when the opportunity came up sooner than I expected, I had enough of a cushion to go for it.
It was a fast decision, but it wasn’t a rash one.
I also want to acknowledge that there are certain circumstances in my life that make this easier for me right now. I don’t have kids yet, I don’t have a mortgage, and I’m fortunate to be in good health. God willing, I hope to have kids and a home one day, and I’ve been saving with those goals in mind, too. But that just hasn’t been my season yet.
So for now, I’m choosing to use some of the money I’ve saved to give myself something else I value: time. I’d rather experience more of life now, while I have fewer commitments and the freedom to travel, than wait until I’m older and my circumstances look different.
That obviously doesn’t mean this is realistic or even desirable for everyone. Everyone’s financial situation, responsibilities, priorities, and comfort level are different. There’s a lot to consider before making a decision like this.
But since people are rightfully curious, here’s how I approached the financial side of my mini-retirement.
Questions you can ask yourself:
- What expenses do I HAVE to pay? Calculate all of your monthly NECESSARY costs: phone bill, mortgage, health insurance, etc. Really be critical here.
- What can I cancel for a brief period of time? Gym memberships, subscription services, beauty treatments, etc. Is x expense really necessary right now?
- How long do I need a break? For me, I wanted 6 months, but maybe 6 weeks is all you need! If you are fully leaving your job, I would also build in time to FIND a job.
- What do I want to DO with that time? Maybe you want to finally start that Etsy shop, spend time with your kids, or travel like me! Is there an additional cost associated with accomplishing your personal goals or is it strictly a time need?
If you are specifically looking to do a mini-retirement and travel, then there are even more expenses you can seriously reconsider depending where you go (can you rent out your home to cover a mortgage? Get creative!). Traveling to more affordable places can potentially allow your money to go further. But, it’s also okay to take some time off to just be home! It is YOUR retirement!
Here is what I did to estimate the financial cost of a mini-retirement:
- Laid out my necessary monthly expenses. Mostly this is my phone, health insurance, and storage unit. This is also where I built an estimate of a travel budget for accommodations, food, and transportation.
- Dropped any expenses I won’t need. I cancelled my gym membership. Stopped all fringe streaming services (except HBO & Spotify- I have to be honest!). Even my townhome lease ended at the perfect time so no more Scottsdale-level rent, utilities, or wifi, however I will still have to pay accommodation SOMEWHERE.
- Determined a timeframe & $ amount that would end “retirement.” If I start getting very close to the savings amount I am letting myself use, I will go home early and look for a job. If I make it last, 6 months feels like a good amount of time to reset and then look for a job.
As far as getting a job when I return, I have built a buffer into this mini-retirement plan to allow ample time for this, as well as starting the job search/ interview process from abroad, thanks to the power of the Internet!
At the end of the day, evaluate your personal needs and determine if this could be feasible for you. How much time would you like to take off, what expenses do you have, and how long would you have to save to achieve this?
Indiana Jane 