Podcast Summary
Exploring the benefits of taking a sabbatical: Taking a sabbatical can lead to personal growth, rejuvenation, and refocus, despite the financial implications. Deloitte's new policy and listener experiences highlight the trend towards prioritizing well-being over constant work.
Taking a sabbatical, a significant time off work and using some of your savings, could be a productive and rejuvenating experience, despite the financial implications. The speaker shares stories of people regretting not living their lives to the fullest and the growing trend of advocating for sabbaticals. Jen Fisher, a human sustainability leader at Deloitte, discusses her experience with burnout and Deloitte's new sabbatical policy. Rachel, a Money with Katie show listener, shares her personal story of taking a year off from her finance career and the benefits she gained. The speaker argues that constantly prioritizing work and financial independence can lead to burnout and that taking a sabbatical could help individuals recharge and refocus.
Transitioning to retirement: Overcoming psychological barriers: Consider taking a sabbatical to practice retirement, explore new passions, and better understand your desires before actual retirement.
The transition from a life focused on accumulating wealth to a life of retirement or financial freedom can be psychologically challenging. Mindy and Carl, two successful real estate investors, shared their experience of reaching financial independence but feeling uncomfortable spending their substantial nest egg due to psychological barriers. Ramit Sethi encouraged them to consider the future implications of their current mindset and the potential benefits of taking a sabbatical to explore retirement and discover new passions. The idea is that practicing retirement before actual retirement can help individuals better understand their desires and prepare for the transition. This concept challenges the common belief that one must work as hard as possible and spend as little as possible for as long as possible to achieve financial freedom. Instead, taking a break to explore new interests and experiences can lead to a more fulfilling and enjoyable retirement.
Redefining Success and Taking a Break: Consider taking a break for burnout, reassess priorities, redefine success, and regain energy and focus.
Considering early retirement or taking a sabbatical can be a viable option for those experiencing a lack of momentum in a side project or career shift, feeling financially secure but not yet fully independent, or dealing with chronic burnout. Burnout, as Jen Fisher shared, can be perceived as failure, fueling fear and preventing us from taking a much-needed break. The pressure to constantly do more is prevalent in our society, but it's essential to redefine success on our own terms and give ourselves permission to step back when needed. Jen's experience of burnout led her to realize that she had never truly defined success for herself and had been chasing an unattainable definition. Ultimately, taking a break can provide the opportunity to reassess priorities, redefine success, and regain energy and focus.
The Importance of Self-Care and Seeking Help for Burnout: Prioritize self-care, therapy, and redefining success for mental health. Address root causes of burnout and create sustainable work environments to prevent sabbaticals. Consider sabbaticals for reflection and growth, but remember long-term impact on well-being and goals. Seek guidance for taking time off if needed.
Prioritizing self-care and seeking help when needed are crucial for maintaining both mental and physical health, especially when facing burnout. Jen's experience highlighted the importance of therapy, self-evaluation, and redefining success based on personal values. However, addressing the root causes of burnout and creating sustainable work environments are essential to prevent the need for sabbaticals in the first place. Sabbaticals can offer valuable time for reflection and growth, but it's crucial to consider the long-term impact on well-being and goals. For those without the luxury of a paid sabbatical, seeking guidance from sabbatical coaches or exploring alternative options can help make taking meaningful time off a reality. Ultimately, it's important to remember that work should enhance our well-being, not detract from it.
Asking for a sabbatical can be uncomfortable, but it can lead to better opportunities: Reach out to your network, identify income drivers, and take a CEO retreat for career growth during a sabbatical
Taking a sabbatical can be a strategic career move, even if it feels uncomfortable or uncertain. Jillian Johns Rood, a coach, suggests reaching out to your professional network before taking a sabbatical and letting them know of your intentions. She believes that people in your network will want you to find another job because they will feel uneasy about your unemployment. While asking for unpaid leave from your current employer might not be feasible, taking a sabbatical can lead to better, higher paying opportunities after the fact, especially for those who have been with the same company for a long time. If you're feeling overwhelmed at work and unsure of how to downshift, consider identifying the drivers of income and marketing in your business, and focusing on what produces the most ROI. After identifying these areas, consider taking a CEO retreat to reflect on the big picture of your business and focus on working on it rather than just in it.
CEO Retreat for Deep Thinking and Discovery: Investing in a CEO retreat for deep thinking and discovery can lead to personal and professional growth by providing valuable perspective and renewed energy, but ensure financial stability before committing.
Taking time for introspection and planning, whether it's for personal life or business, is crucial for growth and optimization. The speaker recommends a 2-4 day CEO retreat with no work obligations to allow for deep thinking and discovery. Overloading yourself with too many responsibilities can lead to burnout and anxiety. To prioritize, consider what is essential if you only had a limited amount of time. Even if you have a side project or business, taking a sabbatical can provide valuable perspective and renewed energy. However, it's essential to ensure that you have the financial stability to take this time off before making the commitment. Overall, investing in yourself through focused reflection and planning can lead to significant improvements in both personal and professional aspects of your life.
Considering a sabbatical or early retirement for a new venture: Sabbaticals or early retirement can lead to significant realizations and opportunities, but require careful planning and consideration of financial and logistical aspects.
Considering a sabbatical or early retirement to focus on a new venture or passion project could potentially save time and lead to significant realizations and opportunities, even if it means taking a financial hit in the short term. The speaker shares their personal experience of realizing the viability of their business, Money with Katie, much sooner if they had given themselves a grace period to test the waters full-time. Although the financial sacrifice may seem significant, the potential benefits and learnings could outweigh the costs. However, taking such a leap requires careful planning and consideration of both financial and logistical aspects. It's essential to assess your sources of income, calculate the opportunity costs, and think about the exit and reentry strategies before making the transition.
Considering the financial implications of a career break: Taking a career break requires careful financial planning, including calculating living expenses and considering long-term financial goals. It may be more feasible for those with financial independence or significant savings, but savings should be used strategically.
Planning for a career break, whether it's a sabbatical or an extended vacation, requires careful consideration of the financial implications. This includes calculating the cost of living expenses during the break and the potential impact on your long-term financial goals. The decision to take a career break may be more feasible for those who have already reached financial independence or have significant savings. However, it's important to remember that savings are not infinite and should be used strategically throughout one's life. Aristotle, an ancient philosopher, believed that leisure time was the most valuable time for humans, but it's essential to ensure that taking a break doesn't jeopardize your long-term financial security. By calculating the costs and considering your overall financial goals, you can make an informed decision about whether taking a career break is right for you.
Balancing Financial Stability with Personal Growth: Through learning from wealthy colleagues and taking a year-long break, Rachel discovered the importance of balancing financial stability with personal growth and the value of diverse perspectives.
While financial stability is a common goal, stepping out of comfort zones and experiencing new perspectives can lead to valuable growth. Rachel, a 30-year-old finance professional, shares her journey from a middle-class upbringing to a prosperous career in investment management. She found value in learning from her wealthy colleagues, whose approaches to debt, investments, and philanthropy differed significantly from her own. However, despite her ambition and success, Rachel felt the pull to travel and take a year-long break in her late twenties. This decision, while seemingly counterintuitive to her earlier goals, was influenced by her personal love for travel and the desire to broaden her horizons. Rachel's story highlights the importance of balancing financial stability with personal growth and the value of exposing oneself to diverse perspectives.
Reconsidering the role of money in living a fulfilling present: Money can provide financial stability and savings, but also enables experiences and travel to live a fulfilling present. Don't wait for retirement, live your best life now.
Money can be used not only for financial stability and saving for the future, but also for living a fulfilling present. The speaker shares how her experiences with travel, work, and the pandemic led her to reconsider her relationship with money and use it as a tool to live her best life now. Despite having achieved financial stability, she felt unfulfilled and saw the importance of experiencing life and travel while she was young. The pandemic served as a wake-up call, reminding her of the unpredictability of life and the importance of living in the present. She was not scared to take a year off and travel, as it represented an opportunity to step out of her comfort zone and live an exciting new chapter in her life.
Planning a financially secure gap year: With careful planning, selling belongings, and leveraging assets for income, a gap year can be financially secure
Taking a gap year doesn't have to be financially risky with careful planning. The speaker and her husband assessed their savings and expenses to determine they could save around $60,000 for a year of travel. They also sold belongings, including a car, to add to their savings. On the income side, they put their house on Airbnb to cover mortgage payments while traveling. It's essential to add a cushion to savings and consider unexpected expenses. By focusing on savings and leveraging assets for income, the couple felt confident in their ability to afford a gap year.
Managing an Airbnb property remotely for financial and personal growth: Successfully managing an Airbnb property remotely can provide significant mortgage payments, flexibility, and the opportunity to work from anywhere. Maintain communication with former colleagues when leaving a job for travel.
Traveling and managing an Airbnb property remotely can be a viable way to cover a significant portion of mortgage payments, allowing for flexibility and the ability to work from anywhere. The speaker shared her experience of successfully managing her Airbnb while traveling, hiring help for the occasional in-person tasks, and leaving her previous job with an open mind and positive relationships. She emphasized the importance of leaving a job to travel without burning bridges and maintaining communication with former colleagues. The unexpected challenge she faced was readjusting to life back home after a transformative experience abroad. Overall, the speaker's experience demonstrates the potential for combining travel and entrepreneurship to achieve financial and personal growth.
Traveling leads to self-discovery and work-life balance reassessment: Traveling can provide a fresh perspective and prompt reassessment of career goals and priorities, emphasizing flexibility and authenticity in work and life.
Traveling and taking a break from the usual routine can lead to valuable self-discovery and a new perspective on work-life balance. The speaker shares her experience of feeling slightly disconnected after returning from her travels and how it prompted her to reassess her career goals and priorities. She realized the importance of flexibility and authenticity in her work and lifestyle, and how Americans' relationship with work differs from that of other countries. This realization may not have come to her without the experience of traveling and taking a break from her usual routine.
Reflecting on the importance of taking a break and making changes in life: Consider a sabbatical for introspection and reevaluation of personal and professional goals, as it can lead to overall growth and fulfillment.
People often regret not making changes in their lives earlier, especially when faced with the reality of their mortality. This was a common theme that emerged from stories shared during the pandemic. To avoid this regret, it's essential to take a break from routine and confront the things that truly matter. A sabbatical can be an effective way to do this, allowing for introspection and reevaluation of personal and professional goals. While a sabbatical may not be feasible for everyone at all times, it's worth considering as a future option for overall growth and fulfillment. This insightful conversation with Jen and Rachel has convinced me to keep this idea in mind for my own future. Our show, "The Money with Katie Show," produced by Jenna Velez and me, Katie Katitosyan, with audio engineering and sound design by Nick Torres, aims to bring such valuable insights to our audience. Devin Emery serves as our chief content officer, and Kate Brandt provides additional fact-checking.
