Taking a career break or sabbatical is a significant decision, especially for Black women navigating careers in industries where representation remains a challenge. Unfortunately, we carry the dual burden of being underrepresented in leadership roles while often being the primary breadwinners in their households. A 2019 Lean In report found that Black women are 40% more likely to be responsible for the financial support of family members than white women. This statistic underscores the need for careful financial planning when considering a career pause.
Whether you’re stepping away for personal growth, mental health, or to explore new opportunities, preparing financially for this break can be daunting. Many hesitate to take time off because of the fear of financial instability, but with proper planning, you can enjoy a meaningful sabbatical without worrying about your bank account.
A career break doesn’t just involve stepping away from work — it’s an intentional pause that allows you to recharge, reassess your goals, and return stronger. Whether your plans include traveling, pursuing a passion, or simply resting, preparing financially for this time is crucial. Below are five key steps to help you create a financial cushion for your career break while maintaining peace of mind.
Set a clear financial goal.
Before anything else, you need to know how much you’ll need to comfortably take your break. Take stock of your regular living expenses, including rent, utilities, groceries, and debts. Don’t forget to factor in new costs that might arise during your break, such as travel or additional health insurance. Black women, who often carry a higher debt load due to student loans, must also take this into account. Once you have a full picture, set a savings target and add an extra 10-15% for emergencies.
Create a dedicated savings plan.
Once you have a goal, start saving intentionally by creating a separate savings account for your break. Automatic transfers to a high-yield savings account can make the process easier and less stressful. Start small if necessary, but stay consistent to build your financial cushion over time.
Assess health insurance options.
One of the most crucial aspects of your financial plan is securing health coverage during your time off. Since most employment-based benefits cease when you leave your job, you’ll need to explore other options. COBRA allows for temporary continuation of your workplace insurance, though it can be expensive. Alternatively, consider ACA marketplace plans or short-term coverage.
Consider supplementary income.
While you’re on your break, finding a small source of income can provide added security. This could include freelance work, part-time consulting, or passive income from investments. Not only can this help cover some expenses, but it also allows you to keep your skills sharp and connected to your industry while on hiatus.
Prepare for your return.
It’s just as important to plan for your re-entry into the workforce as it is to plan for your time off. Whether that means setting aside funds to support a job search, investing in skills training, or keeping up with industry trends, ensure you’re ready to hit the ground running. Studies show that women, especially Black women, are less likely to re-enter at the same salary level or position after a break. By preparing for this transition, you can minimize the financial impact and set yourself up for success.
