Considering a sabbatical? Learn practical tips for planning your own career break without wrecking your finances.

Americans are quitting their jobs to take extended breaks at more than double the rate they did five years ago. About 0.14% of employees took sabbaticals in January 2024, up a little more than half from just 0.9% in January 2019, according to Gusto, a human resources services company. What most people don’t realize is that the biggest barrier isn’t getting approval from your boss; it is having enough money saved to actually pull it off without financial panic. For a three-month sabbatical, try to set aside enough to pay your usual expenses for at least that length of time, one certified financial planner advises. One way to prepare is by saving 5% of your pay annually for five years.

How Much Should You Save for a Sabbatical?

A common rule of thumb is to save enough to cover at least the number of months you’ll be off. For example, if you want a six-month sabbatical, save at least enough to pay six months of living expenses (plus extra for any surprises that crop up). Many academics are even better prepared financially because after a vesting period such as six years of service they are entitled to six months off at full pay or a year off at half pay.

It is also a good idea to maintain a separate emergency savings fund to handle unexpected disasters that arise, such as medical crises and home repair, experts agree.

In practice, though, hitting that target can be challenging. Barely half of Americans had even three months’ worth of expenses saved in 2024 as an emergency fund. This year, only 27% have six months of savings. So if you’re not there yet, don’t be discouraged. You just need to start planning and saving specifically for your sabbatical. Figure out how much money you’d need each month to live your desired sabbatical lifestyle, then multiply by the number of months you want to take off from work. Don’t forget to account for special costs related to your plans. For instance, a travel sabbatical might include international flights and accommodations, while a writing or research sabbatical might involve course fees, equipment, or just extra coffee at your local cafes. Follow this common-sense rule: it’s better to overestimate costs than to come up short. And if you’re lucky enough to have a paid sabbatical benefit from your employer, adjust your savings needs accordingly.

Tips to Fund Your Time Off Without Going Broke

Start a “sabbatical fund” now. The sooner you begin saving specifically for your time off, the easier it will be to reach your goal. Even small amounts add up. Consider automating transfers to a dedicated savings account nicknamed “Sabbatical Fund” so you’re not tempted to dip into it. Treat this just like any other important financial goal.

Also, take a hard look at your current spending and see where you can cut back while saving for your break. Every dollar you don’t spend now is one you can use to buy yourself time off later.

Since most folks rely on savings to bankroll a sabbatical, finding ways to earn a bit more can speed things up. Some people take on side gigs or freelance projects specifically to build their sabbatical fund. In fact, about 36% of aspiring sabbatical-takers plan to do freelance or side-hustle work during their break to supplement their savings.

One thing people often overlook is health insurance and other benefits while they’re off work. If your job doesn’t provide benefits during an unpaid leave, you’ll need to budget for things like health insurance premiums out-of-pocket (or explore options like COBRA, Affordable Care Act (ACA) marketplace plans, or short-term travel insurance if you’ll be abroad).

A sabbatical can be a life-changing break, but it works best when you’ve built up the savings to support it. Figure out how long you want to be away and how much that time off will cost, then start saving toward that goal as early as possible.