Planning a gap year as an adult

January 11th 2023 | Categories: Financial Planning |

Planning a gap year as an adult

It does not even need to be a year – just enough of an extended break to reset and take stock of what’s important to you. There‘s the opportunity to learn new skills or another language, explore different cultures or do a road trip around Australia.

By planning ahead and making sure your break is not going to derail future financial goals, taking an extended period off work can be achievable and enable to you live your best possible life.

Dare to dream

Start by thinking about your big dreams and goals, are there any destinations attached to them? It might even be one on your bucket list! Whether you’re craving your very own “eat, pray, love” experience or simply need some time to switch off and reset, there are a host of websites that can help you to plan your adult gap year. They will provide tips and tricks for travel and where to find work (paid or volunteer).

You might consider:

Explore our budgeting and goal-setting area in our Knowledge Centre.

 

Subscribe to our newsletter below to get fresh news and insights.

[ninja_form id=41]

 

The importance of planning

Once you have established what your break will involve, work out a budget that takes account of the costs you will continue to incur (such as mortgage or loan repayments, insurance, utilities, car registration and rates) as well as your best estimates for accommodation, food, travel and spending money for your destination.

Don‘t be daunted by an amount that may appear unachievable at first glance.

Work out how to save on costs when travelling. Some ideas include:

Then, with your costs under control, and a clear goal in mind, it‘s time for a savings plan.

You will want to reduce your current living expenses as much as possible to maximise savings and think about setting up a direct debit to a high-interest savings account. Try our savings calculator to see how much you will need to save every month. You may even decide to rent your home out or list it on Airbnb to help cover expenses while you are away.

If you have more than a few years to plan your gap year, you could look into some longer-term savings and investment options such as shares, exchange-traded funds (ETFs), or term deposits.

While a gap year is exciting, planning ahead financially is essential to ensure you don’t fall into debt.

You also need to carefully consider how this could affect your long-term financial goals. You probably won’t be making super contributions, so this may impact your super balance and retirement plans.

At Invest Blue we love empowering our clients to live their best possible life. If you’d like to take time off in the future, contact us today to ensure that taking a break from earning an income won’t impact your future financial security.

 

Speak with one of our trusted and accredited financial advisers today on how we can help you live your best possible life.

[ninja_form id=41]

This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.