Are you planning for a sabbatical? Read this before you do so
It is quite healthy to take a break from your career for which you take a sabbatical. However, here are some rules that you should consider before doing so.
It is quite common to see people taking a career break. There can be various reasons for the same. Either they want a break from the existing work for some time, or a female is expecting a child or looking to change the career path. May it be anything, to do so, it is essential to put some time in thinking and planning your sabbatical. In this article, we have listed few rules that you need to bear in mind before taking a sabbatical.
Be clear on why you need a sabbatical
The most important thing is to understand why in the first place you need a sabbatical. This means that you have to ask yourself, why you need the time and what you plan to do at this time. Say, for instance, you are planning to do a full-time course like Masters in Business Administration (MBA) and hence, won’t be able to work full-time. If you don’t define time, it would be difficult for you to get back on track back again.
The next big thing is to decide how much corpus do you need. As you take a sabbatical, your income would either be minimal or irregular. Hence, it is important to decide how much corpus do you need to support till you get a regular income.
Reassess your expenses
As you go on a sabbatical, some expenses might have got added and some might have been reduced. So, it is crucial to reassess your expenses. This will help you to calculate the right amount of required corpus.
Avoid investing in risky assets
The most important thing to note here is that, as the income is minimal or irregular, it would be wise to park your money in the safer assets. Investing in risky assets might lead to lower amounts during short-term emergencies. Apart from this, invest in liquid assets. This means that don’t Park your investments in assets such as land and property. This is because when you might need the money it would be difficult to sell and then you might end you selling it quickly getting no benefit out of it.
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