Taking a Career Break? 4 Money Questions to Consider

For example, could you negotiate for a more flexible work arrangement or cut back on some hours? If it’s about needing to recover from occupational burnout, could you take an extended vacation without having to officially leave your company? Giving yourself some time to think through your options could save you from making a rash decision.

If you’re married (or in a serious relationship), you may want to discuss this potential career break with your partner. After all, your decision will likely impact the both of you.

2. How much would you need to budget for this career break?

If you decide that leaving your job makes the most sense, one thing you’ll want to do before quitting is figure out your budget—the one you’ll live on during your time off. 

Keep in mind that a career break often means a "break" in your usual flow of income as well. You may have little or no money coming in during this period, depending on your personal situation.

For instance, if you’re married and your spouse is working, you’ll be going from living on two incomes to one. So one thing to discuss with your spouse is whether you can maintain your current lifestyle on that one income. And if not, what kind of adjustments would you need to make, and are you willing to do so? 

Reviewing your current budget is a good starting point. You'll want to see how your budget might change without your regular salary. What are the essential expenses you have to maintain? This may include rent (or mortgage if you own), utilities, groceries, debt payments and insurance.

Health insurance is something to figure out sooner rather than later, especially if you need to shop for your own policy. If your spouse has coverage from work, see if you could be added to their health care plan.

Next, identify the discretionary items you could cut back on to help lower your expenses while you’re not working (dining out, unused subscriptions, etc.). Don’t forget about factoring in any potential savings from not having to work—like child care or transportation costs. 

By having a clear understanding of how much you’ll need for your career break, you’ll get a better sense of how far your savings could potentially take you. 

3. Are your savings in order? 

You may be wondering how much savings is “enough.” The answer will be different for each household because it largely depends on the length of your break, your spending, and whether you have another source of income to count on (like your partner’s).

This is why figuring out your career break budget is a key step. Crunching the numbers can also help you decide when you can realistically leave your job. For instance, some people may need to work a little longer to get their finances in order. 

Generally, the longer your break, the more money you may need to save. Ideally, you should have enough saved to cover all your expenses for the full duration of your break.

Bottom line

Taking a career break isn't something you want to do at the spur of the moment. A big decision like this deserves careful thought, and it’s important to plan ahead as much as possible. Being financially prepared could help make the transition a less stressful one. (We say “less” because big life changes are going to be stressful no matter what.)

It’s a good idea to speak with your financial advisor about your plans, so that they can help you understand the overall financial implications of your decision. For instance, how would a career break impact your other financial goals? 

Also, consider connecting with friends or family members who have gone through this transition before. What was it like for them? What were the challenges or surprises they faced? Their experience may yield valuable insights, helping to inform your own decision-making process.