It is up to you, as long as your finances are in order and your professional career won't be too adversely affected
As work and society become progressively more demanding on our time, it’s becoming more and more difficult to focus on efforts to increase one’s financial well-being. Taking a sabbatical is one of the best ways to ensure that individuals don’t get too busy making a living and forget to make a life. Increasingly, many in today’s workplace are entertaining the idea of taking some time out from their normal routine to recharge, regroup and refocus.
According to Fortune's 2016 list of the 100 Best Companies to Work For, 19 top corporations are now offering paid sabbaticals as part of their current employee benefits package. Henry van Deventer, Head of Wealth Development at Old Mutual Wealth, says that while there is no data confirming how many local companies are doing the same, many South African executives are considering time away from work to recover from job burnout, develop new skills or reconnect with the most important people in their lives.
“The purpose of wealth is to allow an individual to live a more meaningful life and to give themselves the opportunity to do the things that really matter. In today’s fast-paced world, we’re finding that we are left with less time than ever to enjoy these things,” says Van Deventer, adding that there is no point having all the money in the world but no time to enjoy it.
He adds that a work-life imbalance can result in a decreased sense of job satisfaction and general loss of productivity and that some time away can bring a new perspective and renewed inspiration and motivation.
Van Deventer acknowledges that when it comes to finances, money and time are intimately linked and funding is often perceived as the biggest hurdle to taking a sabbatical. “However, taking extended time away from a demanding, yet well-paying position, is possible with the help of a supportive family, understanding employer and the insight of a financial planner.”
The first step is to define the purpose of the sabbatical. “Whether it be a mid-life crisis, children leaving home or just a need to take stock and re-assess, it is critical to be clear about what you want to achieve from taking a sabbatical. A sabbatical is not a glorified holiday, it’s an opportunity to live life differently and gain a different perspective,” explains van Deventer.
Once the reason for the sabbatical has been defined, ensure enough time is set aside to achieve it. “The critical thing is to identify a time, block it out in the calendar and then focus on financial, personal and professional planning to make it happen,” says van Deventer.
In terms of financial planning, all living expenses associated with a sabbatical need to be considered. “Basic home expenses, such as bond repayments, rates and taxes, levies etc. will need to be factored into the costs, as well as the cost of living during the sabbatical period. Start the financial planning process by making a list of what these essentials are, and then work towards setting enough aside to provide for them.”
“Ideally, those planning to take a sabbatical should ensure they have saved enough to replace their monthly salary each month during their sabbatical.” Van Deventer says that this way, household and travel expenses are accounted for each month. He warns, however, “Under no circumstances should a sabbatical be taken at the expense of long-term or retirement savings.”
Van Deventer concludes: “While the prospect of taking a sabbatical may seem daunting, it is achievable. By simply following the initial steps and planning properly, the rest of the process becomes significantly easier.”
