In my previous post, I talked about why I quit my job to take an adult gap year to focus on things that are important to me – my health & finding my purpose. Working 9 to 5’s from Monday to Friday for someone, with only weekends to breathe, wasn’t what I had in mind for purpose. Let’s face it – The salary, the smart, kind people you interact with are the only good things about that deal.

And so, I decided to take a year off to focus on “me”. I only get to be me in this lifetime. Who knows what happens in the next! I wanted to be intentional & take control of my life. This is very important to me.

I did have a financial rough plan on how to take an adult gap year. I want to share how I prepared financially for my adult gap year.

1. Save at least 10% of your salary

I found different ways to save money in savings account with attractive interest rates. Every month, I tried to set aside at least 10% of my monthly take home salary. Saving is essential if you are planning for your adult gap year. It is essential to park three to six months’ worth of your salary in an emergency fund.

2. Invest at least 10% of your salary

Make your money work for you – you work so hard for your money. Let your money run for you. I recommend low cost index funds as a great start to slowly & reliably grow your money while you enjoy your adult gap year.

3. Do not purchase that new fancy car – cars depreciate demonically fast!

Cars are toys that will lose value the moment you drive them off the lot. I held onto my reliable used car and ignored the temptation of shiny new models. That money went toward my adult gap year freedom fund instead. No regrets.

4. Uber & Door dash everyday…NOT! 🙂

It’s easy to fall into the trap of convenience spending—ordering food or rides every time you are tired. But it adds up & fast! I started cooking more at home and driving more – as much as I hated driving. Small choices, big impact. Also, I learned to make delicious salmon burgers and sweet potato fries at home, at half the cost charged by any restaurant.

5. Own vs Rent – You do the math!

I know! American dream is all about owning a home with a white picket fence – or is it propaganda? Regardless, owning a home is a huge financial responsibility that will shackle you to one location and not to mention to a multi year home loan.

A 30 year mortgage is a third of your life – it’s a third of your darn life!!!!
Let that settle

I know what you will say, house is an asset, it will go up in value over time, you can refinance or sell, yada yada. Well newsflash, all that involves time, research & effort. I would rather spend all that on travel & experiences. I am not going to live forever. Anyway, you do what is right for you. You may have already paid off your home and thinking of taking an adult gap year – well that’s great!

6. Splurge on things that bring you joy

Life isn’t about sacrifice. I still budgeted for things that I enjoyed —travel, quality food, an occasional massage, and yoga lessons. The key was being intentional. Joyful spending is different from impulsive spending. One gives you energy while the other takes your energy – you know which is which.

There you have it. Taking an adult gap year is not an impulsive decision. It’s a responsible one. If your current situation sucks, then carefully plan your exit but intentionally plan your finances. Good luck to you!

Questions or Thoughts? Contact me to say hi!

Seek your adventure – Alisha out!