How to Use Money as a Tool for Burnout
Last year nearly half of female employees reported feeling burnt out. 💥😵
You too? Personal expectations, lack of resources, and outside stigmas can all make it challenging to put your mental health first.
But prioritizing your mental wellbeing is vital to your overall health and has a direct impact on your personal and professional life.
So today we’re diving into the steps you can take to financially prepare to take time off work (whether your company pays for it or not).
Analyze your spending and look for ways to cut back.
Take a look at your last 3-6 months of spending to get a clear picture of exactly how much your spending, saving and investing.
Find areas where you can cut back spending (for now) to help lower your cost of living and increase your savings rate. Get creative and think about how you can cut back on both small and large expenses—maybe you sublease your apartment and stay with family during this time.
In the Wealth Circle we call this lifestyle analysis—and we have a tool that helps you easily see where your money is going each month and identify areas where you can cut.
How Much Should I Have in My Emergency Fund?
This one is a must whether you're planning to take time off or not, but is especially important when planning for a period of lower to no income.
This number will look different for everyone depending on things like your cost of living and risk tolerance, but a typical emergency fund is 3 - 6 months of living expenses—stored in an account that's easily accessible (like a high yield savings account).
Create a Plan A and a Plan B.
Determine your average monthly cost of living and multiply that by the amount of time you plan to take off.
Once you have this calculated, you'll need to either save enough to cover these costs of confirm with a partner/spouse/family member/etc. that they're comfortable supporting you financially during this time.
But don’t stop there…it’s always smart to have a back up plan.
Here are a couple of ways you can leverage assets you may already have:
If you’re a home owner, you could take out a Home Equity Line of Credit or HELOC. This is a line of credit secured by your home that gives you a credit line to use for large expenses. Think of it as a credit card for your home.
Another option to look into is a Liquidity Line of Credit. This is a loan that allows you to borrow against your brokerage account. Interest rates can be locked in for a certain amount of time, but can become variable after that fixed period.
If needed, consider creating income sources outside of your 9-5 to supplement you during your time off.
If you're able to take a true break, amazing! But if you are still looking to generate income, here are some ideas:
Work as a contractor or consultant in your field and set your own hours
Rent your house out
Sell a property or another assetWant to learn more?
Make it count.
By taking these steps and creating financial stability before taking time off work, you'll be able to take the break you truly need, without stressing about money.
Consider setting goals for your sabbatical and checking in with yourself weekly to make sure you are getting the most out of this time off.
Want to learn more?
Check out this episode of the Coffee & Coin podcast: How to use Money as a Tool for Burnout.
Two Factora Members open up about how they set up their investment strategies to:
Take a step back from their careers
Destress and heal from burnout
Put their mental health first
Create space to live more intentional lives
Keep Learning With Us
Get even more insights with our weekly podcast, Coffee & Coin, hosted by our Founder & CEO, Allegra Moet Brantly.
Ready to take your financial life to the next level? The Wealth Circle is our live online course and community dedicated to helping women invest confidently and reach financial freedom.
FAQ
Does my company offer sabbaticals as an employee benefit? It's important to ask your HR department what your company offers and if your tenure entitles you this fabulous perk.
What is a sabbatical? A sabbatical is a period of paid leave granted for study or travel, traditionally one year for every seven years worked.