January 25, 2005 01:32 PM
Taking Time Off
Excerpt: A two-week vacation hardly seems time enough to recuperate or to take that special trip you've always dreamed of. What would it take to enjoy a month, three-month or even six-month furlough from work? These Five Tips tells you how to plan that extended vacation.
Are you having a manic Monday?
Maybe you scraped off your windshield and rushed off to work, only to find your desk buried in paperwork and your boss breathing down your neck.
A two-week vacation hardly seems time enough to recuperate or to take that special trip you've always dreamed of. What would it take to enjoy a month, three-month or even six-month furlough from work? These Five Tips tells you how to plan that extended vacation.
1. Calculate the costs.
Before you imagine life in the Greek Islands, think about the reality here. Dee Lee, financial educator and author of "Women and Money," says the idea of taking six months off from work "is a very scary proposition for some people."
"If you're seriously thinking about it, it will take you a year to a year and a half to plan it right," she said.
According to Lee, you will need: Six-months of living expenses to cover your usual financial responsibilities, money to cover travel or other expenses during the sabbatical, and another three months living expenses just in case you need to look for a new job after you return.
This will all have to come from your savings since your boss is not likely to keep you on the payroll, if he's even nice enough to hold your job.
To see if you have the savings built up to take time off, calculate the bottom line. While you can exclude some work expenses, such as commuting and dry-cleaning, without a paycheck you will have pick up the tab on your health care. Lee says that can cost between $400-$500 per month.
Doug Flynn, a certified financial planner, warns against other hidden costs.
"If you're at home, writing a book, remember your utilities are going to be higher," Flynn noted. "You'll likely have you're A/C or heat on all day when you used to have it off while at work."
You might also consider ways to make income while you're off, like renting out your house while you travel. To ensure you are thinking of everything, it's a good idea to talk it over with your financial planner. If you don't have one, hire one by the hour. For a list of financial planners in your area, log onto www.GarrettPlanningNetwork.com.
2. Manage your boss.
Extended leaves are not that unusual. According to the Society for Human Resource Management, one in five companies surveyed say they offer employees a sabbatical program.
Arranging for a leave of absence is usually better than straight-up quitting. After all, the idea behind a sabbatical is to ask your boss if you can take some time off with the intention of returning to your job.
"You have to have a lot of confidence to ask your boss for a sabbatical -- and a really good skill that will still be worth something to your boss in six months when you return," Lee said.
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