Can you afford to take a career break? | Money Talks Podcast
Summary
TLDRIn the 'Money Talks' podcast, host Andrea H explores the financial implications of taking a career break through the experiences of guest Andy, who took a two-year hiatus to pursue his MBA. The episode delves into Andy's financial planning, cost-cutting strategies, and the importance of communication with his family during this period. Andy shares insights on managing expenses, the value of spending time with family, and the benefits of a career break, concluding that such a break can be worthwhile but should be carefully planned to minimize financial stress.
Takeaways
- 📚 The importance of planning financially before taking a career break, as highlighted by the host's experience of needing to do freelance work during her 3-month break.
- 💼 Andy's decision to take a 2-year career break was influenced by the inability to take unpaid leave for his MBA, leading to a careful financial planning process with his wife.
- 🏠 Major monthly expenses like childcare and car payments were identified as significant financial burdens during Andy's break, emphasizing the need to address these when planning for a break.
- 🚗 The car remained a necessity due to children's school transportation, but Andy supplemented car expenses by driving for Grab to cover running costs.
- 🍽️ Eating out was one of the first expenses to be cut, illustrating the need to reassess discretionary spending during a financial break.
- 🩰 Adjusting family expenses also included changing the children's extracurricular activities to more affordable options, like moving from private to People's Association schools for ballet lessons.
- 💰 A conversation with the insurance company allowed Andy to suspend premium payments for a year, showcasing the value of reviewing financial commitments during a break.
- 👨👩👧👦 Andy's experience of being a 'house husband' during the break led to a shift in family dynamics, with his wife taking the financial lead and him contributing through childcare and household duties.
- 🧳 Despite cutting back on travel, the family managed a short holiday by utilizing points from a vacation club, demonstrating creative budgeting even during financial constraints.
- 💹 Liquidating some investments became necessary to cover expenses during the break, indicating the potential need to tap into savings or assets when planning a career break.
- 🔄 Post-break, Andy returned to work with a different perspective on life and work goals, suggesting that a break can provide valuable personal insights and changes in outlook.
Q & A
What is the podcast 'Money Talks' about?
-The podcast 'Money Talks' is a platform for various conversations related to personal finance, including topics like the costs of getting a divorce and financial considerations when taking a career break.
What advice did family lawyer Ivan Chong give regarding divorce costs?
-Ivan Chong advised to iron out all the financial details early on before seeing lawyers, which is one of the biggest ways to save money, time, and heartache during a divorce.
Why did the host, Andrea H, take a career break?
-Andrea H took a career break for three months at the age of 38. Although it wasn't the most financially sound move, she enjoyed the freedom that came with having no scheduled obligations.
What was the main reason Andy took a two-year career break?
-Andy took a two-year career break to pursue his MBA. His company did not allow for a no-pay leave, so he had to resign to focus on his studies.
How did Andy plan for the financial implications of his career break?
-Andy planned for the financial implications by calculating his funds, talking to his wife, and deciding on areas where they could cut expenses, such as holidays and eating out.
What was the approximate monthly expense for Andy's family during the time of his career break?
-Andy's family's monthly expenses were close to 5 to 6 thousand dollars, including childcare for his two young kids, which was a significant portion of the cost.
How did Andy manage his car expenses during the career break?
-Andy managed his car expenses by driving for Grab, which helped to cover the daily usage costs like petrol and road tax, although it didn't fully cover the car installment.
What changes did Andy and his wife make regarding their children's activities and education during the career break?
-They moved their daughter from a private ballet school to a more affordable People's Association school and established new routines for eating out to reduce costs.
How did Andy explain the career break to his young children?
-Andy explained the career break to his children by establishing new routines, such as eating out less frequently, without explicitly telling them about his unemployment.
What was the impact of the career break on Andy's role within his family?
-During the career break, Andy became the 'house husband,' taking a back seat in terms of financial contributions while his wife took the lead, which was an adjustment for both of them.
How did Andy's experience during his career break influence his perspective on work and life after returning to the workforce?
-After returning to work, Andy entered with a different perspective, focusing more on the real goals for his career and being more watchful of his expenses.
What advice does Andy give to those considering a career break?
-Andy advises to have at least a year's worth of expenses saved up and to cut unnecessary purchases by at least 20%. He also suggests considering a shorter break of half a year to one year.
Outlines
🎙️ Podcast Introduction and Career Break Discussion
The Money Talks podcast, hosted by Andrea H, revisits the topic of financial planning, specifically the costs of divorce, and introduces the subject of career breaks. The host shares her personal experience of taking a 3-month break at 38, which was not financially ideal. The episode's guest, Andy, discusses his two-year career break to pursue an MBA, emphasizing the importance of financial planning and the support of his wife in making this decision.
📚 Balancing Studies, Work, and Family Life
Andy explains the circumstances that led to his long career break, which was partly due to the need to complete his MBA while working part-time. He describes the six-month planning process with his wife to adjust their lifestyle and cut expenses, such as forgoing holidays and reducing dining out. The conversation also covers the financial implications of having young children and the decision to use his car for Grab driving to offset some costs.
👨👧👦 Adjusting Family Life During a Career Break
The discussion continues with Andy's strategies for managing family expenses during his break, including moving his daughter from a private ballet school to a more affordable option and reconsidering insurance premiums. He also shares how he explained the career break to his young children by establishing new routines and the importance of spending quality time with them.
🏠 Financial and Domestic Adjustments as a House Husband
Andy talks about the domestic adjustments during his break, including his new role as a house husband and the dynamic with his wife, who continued to work. He describes the mental shift required to take a step back financially and the importance of maintaining open communication about family decisions. The conversation also touches on the use of his savings and the liquidation of some investments to cover expenses during the break.
💼 Returning to Work and Reflecting on the Career Break
In the final part of the conversation, Andy reflects on the value of his career break, the lessons learned about financial management, and the benefits of spending time with his family. He advises on the importance of having a financial cushion and cutting back on non-essential expenses. Andy concludes by saying that while the break was worth it, he would consider a shorter period next time and emphasizes the need for continuous financial vigilance.
Mindmap
Keywords
💡Career Break
💡Financial Considerations
💡MBA
💡Expenses
💡Insurance
💡Investments
💡Grab Driving
💡Communication
💡House Husband
💡Budgeting
💡Podcast
Highlights
The importance of planning finances early when considering a career break, as suggested by family lawyer Ivan Chong.
The host, Andrea H, shares her personal experience of a three-month career break and the financial implications it had.
Guest Andy's decision to take a two-year career break in 2016 to pursue his MBA, despite the financial challenges.
The necessity of discussing and gaining support from family, particularly one's spouse, before taking a career break.
Strategic financial planning, including cutting back on holidays and other non-essential expenses during a career break.
The significant monthly expenses of having young children, including childcare costs, and how they factor into financial planning.
The role of a side hustle, such as driving for Grab, to supplement income and cover car-related expenses during a break.
The impact of a career break on family dynamics, including children's routines and expectations.
Adjusting to a new role within the family, such as becoming the 'house husband' during the break.
The importance of maintaining open communication with one's spouse about financial contributions and decisions.
The psychological adjustment required when transitioning from being a primary breadwinner to relying on savings and a spouse's income.
The benefits of a career break, such as spending quality time with family and reevaluating life and career goals.
Practical advice on budgeting for a career break, including setting aside a year's worth of expenses and cutting back on non-essential spending.
The value of liquidating investments as an emergency fund during a career break, if necessary.
The host's reflection on the benefits of a career break, including gaining a new perspective and being more watchful of expenses post-break.
Andy's final thoughts on the worthiness of his two-year career break and the lessons learned about prioritizing and managing finances.
The podcast's closing remarks emphasizing the rarity of career breaks in Singapore and the potential benefits of taking one.
Transcripts
you're listening to a CNA
podcast welcome back to the Money Talks
podcast I'm your host Andrea H this is
where all kinds of conversations about
your money live and they live
permanently because you have access to
all of our past episodes including our
last one about the costs involved in
getting a divorce the takeaway from that
conversation that I had with family
lawyer Ivan Chong iron out all the
dollars and cents early then go and see
the lawyers trust me it's one of the
biggest ways to save money and of course
time and of course heartache too you can
go check it out on Spotify Apple or
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done listening tell us what you think
okay now when's the last time you took a
career break or perhaps a sabatical of
some kind what I did for 3 months very
recently actually at the age of 38 now
looking back it wasn't the most
financially sound move to make I didn't
have a fund to chap into so I actually
still had to do freelance gigs to get by
but the freedom that freedom of having
nothing to do well nothing scheduled to
do was quite wonderful I have to say
well on today's episode what I want to
do is get a firsthand account of what
it's like for someone who took a career
break and his take on the financial
considerations for those planning to
take one so you don't end up like me my
guest is Andy so he took a break from
work for two years guys two years today
he's back at work he's doing sales for
smig Singapore you know those fancy
kettles and DOL and gaban of fridges
thanks for joining us on Money Talks
Andy hi all right so tell us Andy how in
the first place did you land yourself in
a position where you had to take such a
long career break I mean 3 months was
already nerve-wracking for me but you
took two years off yeah that was back in
2016 in December I was halfway through
my NBA but then as the study get more
and more tedious working and study
parttime weekend is being burned oh yeah
yeah so I decided to talk to my boss to
see if I can really take a no pay but
taking no p is not an option for them
because they need someone to lead the
sales team back then so so no choice I
have to take back the bullet calculate
the funds and everything talk to the
wife the most important thing is she has
to agree absolutely given that you
didn't really have a choice I guess at
the time but to take a career break in
order to pursue your MBA were you able
to plan for it before you actually went
on this break I mean how much notice was
that between the time that you told your
boss and your boss said no and the time
you actually said okay you know what I'm
going to take this leave now
I told him somewhere in June to ask him
for option whether I can take a no payd
for a year to and a half because my
study will complete in 2017 right they
say it's not a company policy even
though it's a
MMC yeah so I guess that's where I
started to to plan and talk to my wife
to see how much we can adjust here and
there and how long was that conversation
how long did you plan for it we planned
about 6 months wow okay so you you did
take your time you didn't rush into it
you didn't rush into it yes prepare
about it financially see where we can
cut I think the most important thing to
cut is holiday oh so painful and
especially since you're working so hard
on this MBA yeah you want to take your
family to a nice place to really you
know take a break sometimes right okay
but before we get into that I just
wanted to ask also before you went on
this break what were your monthly
expenses like roughly roughly at then I
already have two very young kids and
young kids are actually the most
expensive especially with their child
care it can cost back then was already
1,2 to 1005 per per and just per kid per
kid wow and that's on top of your
expenses and your wife's expenses yes so
all in all expenses money expenses plus
the household will reach about close to
5 to 6K oh that's a big burn in the
pocket yes correct and what did you
observe was your biggest expense I know
the kids were expensive yeah oh the car
car is the biggest expenses and that was
back then this is before the record
correct oh my gosh okay so the car was
the biggest expense how did you plan to
reduce that expense uh okay so when I
was not studying I took up the grab to
drive grab ah so you had a side hustle
yes correct so it helps to supplement in
terms of petrol and the road tax but of
course installment wise I'm not driving
full time so it's a bit difficult to
cover the full installment so at least
cover the daily much usage of the the
expenses of running the car not the car
itself okay was it an option for you to
cut the car out completely when you went
on this break it's not an option because
my kids in the morning need to F them to
to school and back then my son is
starting P1 oh very important Year yes
corre and the schools is not very
exactly near my house yeah so that's
where need to send him to school okay so
it was a bit of a sacrifice right yes
correct okay I hope your son listening
to this year's on I hope so will be very
grateful for Papa doing this for him
even though he had to know go without a
job did you know immediately what else
you had to cut back on apart from you
obviously the car wasn't an option did
you know what else you had to cut back
on what was the first I guess strike off
the list if you will of St off the list
is probably eating out ah okay and that
amounted to a lot for you on average eat
out perier it comes to 100 to 150 per
for of yes for a family of four on a
simple restaurant we are not talking
about those missioning restaurant or
those highend restaurant it's even
simple restaurant casual dining casual
dining yes yeah it can come up to about
$100 per meal so that was the first
thing you struck off the expens okay
what else did you have to consider in
terms of family expenses for example the
kids and their extracurricular
activities did you think about reducing
expenses on that or any other family
related expenses you had to cut back on
back then my girl has ballet lessons so
ballet doesn't come cheat as well oh
yeah yeah so we move her from those
private B school to those people
Association school so so it's more
affordable a more affordable is which is
about half the price yeah so she still
get to dance and not say stop totally so
and the other thing is enrichment class
we don't really have it so it's not a
big concern I think the other concern is
Insurance yes yeah so a lot of us why we
working we tend to buy what we can
afford and everything but when I decided
to take this two years I speak to my
insurance to see if I can go on a
premium H something like that so they
say can because back there I bought this
Rider the insurance that I bought is
actually more for my kids future study
and everything as well so quite a huge
amount is being suck in so it's good
that I have the rider on but you only
can go for maximum one year okay well
still better than better than corre yeah
did you feel like you needed to be extra
vigilant make sure you you know don't
fall seriously ill you don't get to an
accident that sort of stuff otherwise
your insurance might not kick in or did
you worry about stuff like that when you
went on the break it came across my mind
but we just had to say we need to leave
normally and not to be over cautious the
I think the more cautious you are the
more worried you are the tendency for
you to forsake is higher yeah it's
actually very true I mean a lot of us
forget that sometimes stressing over not
for falling sick you do end up falling
sick right okay so here's another
interesting question for you my dad was
retrenched before it's a bit different
from yours my dad was retrenched before
he had a really tough time trying to
sort of explain to us kids and we were
quite a bit older than your kids we were
teenagers he had a bit of a tough time
trying to adjust to being unemployed
some would even argue he had an even
tougher time explaining to us as kids
hey Papa's not working because so and so
how did you explain to two young
children the reason for your career
break it's a bit tough because they are
still young and they still want to eat
whatever they want to eat but then
because they don't know where the money
comes from right yes they still don't
have the concept of where the money come
from so what we need to do is we just
had to slowly make it a habit to not so
eat l so often right yeah so we started
off with Monday to Friday eat home mhm
then Saturday Sunday we only eat one me
outside and the r is home okay so it's
just establishing new routines so when
kids are young it's easier to to make
the routine and everything so explaining
to them will make it worse they will not
understand why and they create big fast
and after that parents also get angry as
well so so sometime we just need to keep
status qu a bit and we just slowly build
a new routine around them okay so they
don't actually know they didn't actually
know that you were unemployed yes
correct but it's just that they realize
that how come I at home more often I'm
sure they were happy with that yes they
are happy with it actually I enjoy the
two years spending time with them
picking them up and sending them to
school and these are important years
they're still so young right that was
what I was going to ask Al so do you
think there was a lesson there to teach
them you know as a parent you're going
through these changes did you think
there was a lesson there to be taught
well the lesson I learned is that we
constantly need to talk to them that why
we are at home it's not because we
choose to be at home but it's not by
circumstances but it's by what we want
to do yeah yeah is also we hardly spend
time with that during this period of
time yeah especially if let say they go
to child care yeah 9 hours are in school
and the rest before they sleep is only
the balance of two hours and how often
we spend time with them correct correct
so my advice to parents or working
adults who want to take a cor think
carefully about the finances we need to
have on average expenses to keep about a
year if you want to do a year I think
that's very good advice but I think also
I'll ask you later on about whether it
was all worth it I just wanted to get
more into the nyr now we talked about
the kids now let's talk about the
wife so you had all these ongoing
expenses to think about you took 6
months the two of you to discuss okay
here's what we're cutting out here's
what we're keeping here's how we are
reducing talk to us about how you and
your wife came together to iron things
out I assume she was still working at
this time right yes she is still working
okay so was there an
expectation that you would be
contributing the same to the household
during this break I would say initially
it's a little bit difficult because most
of the time I'm the one that that pay
most of the household so as times goes
by I had to explain to her that my
saving is deting yeah I can't really put
in the same am of saving into the same
joint account that we have so for the
two years she wear the pants at home and
I became the house husand how did you
deal with that were you okay with it I'm
initially was a little bit weird to to
be a house husband because it's unusual
for for Singapore men I would say so
yeah yeah so it's a mindset and
mentality that we need to adjust because
yes if I want to take a break and want
to study I will take a step back yeah
and she will have to take the lead and
how did she feel about that uh uh she
also feel weird because I'm the man on
the house and suddenly she so I say I'm
not totally lay off yeah it's just that
in terms of finances you are taking the
front L where I'm taking a back SE and
we will still discuss on things that do
with kids and everything it's just that
financially I'm not as capable as I am
previously but I do respect her for
seeking my advice and my opinion on the
things to spend on everything I think
that's the sign of a strong solid and
healthy partnership really because
without that communication it's going to
be hard for you to have taken this break
I mean you talk about one year we talk
about a few months and already people
get worried right in marriages and
relationships this is two years so kudos
to the two of you you guys are still
together just put it out there you guys
are still together you're happy you you
work things out the more important thing
is you earn your NBA at the end of it
yes correct yeah and the good thing is
that she has a stable job yeah I think
that makes it count because because when
one party is not so stable the other one
has to keep man for right
[Music]
okay hello everyone my name is chrispina
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your
podcast so you did say that travel was
obviously like no it's not going to
happen during this career break did you
try to budget for one like maybe to
nearby places we did budget for one to
book it ah yes because before that we
managed to purchase the soal Merit
Vacation Club thing so we managed to
still use the points so we don't need to
really pay for the hotel we just need to
buy uh air tickets to to go there for
about 4 days three9 to take oh that's
smart would you add that to your advice
in terms of strategizing a career break
like you know collect all these points
know where your points are be the Auntie
yes correct okay I wouldn't say buy a
package beforehand like say in the event
if you still manage to save up a few
hundred every month here and there
cutting down those expenses I'm sure
working out all the budget and
everything we still can do a short
holiday somewhere yeah no need to be far
as long as the family can get together
and enjoy ourself is good enough hey you
can take a 5our bus ride to KL I mean if
the kids can St even a station would be
good enough as well exactly yeah exactly
and that's a few hundred if you take a
break you enjoy the holiday experience
as a family kids don't know the
as long as it's not at home as long as
it's not at home we're not washing
dishes we're not doing the ironing
nothing okay so we talked about
insurance we talked about household
expenses conversations with the kids and
the wife did you budget for Investments
then did you have any investments before
going on this career break and how did
you manage them when you went on that
break okay I bought a couple of shares
that's where I liquidated a bit as well
so it's a unplanned liquidation because
of this twoyear break but no doubt as
you see if the profit has made do not be
greedy and say hold on to it but like
say use it these are the emergency funds
that can EAS and for some people that's
exactly what that is for the Investments
are for well it's not necessarily for a
rainy day but it's comforting knowing
that it's there it's there that for you
to utilize when you need it yes and are
you have you gone back on those
Investments since you've returned to
work did okay so you're feeling quite
relieved now you're quite relaxed I have
to say for The Listener Andy is dressed
very comfortably and casually in a pair
of chinos and poloa he's very relaxed
now he's got his amb in his pocket
though those two years must have been
really stressful so in the final
calculation of your expenses how did you
cover them while being effectively
unemployed I mean did you continue your
grab driving for example did you amp it
up okay for my routine actually the day
is very simple in the morning I drive
both kids to school yep after dropping
out I will start the the gra mhm we
drive until about close to 11:00 I go
home take a break mhm then one plus I
will start to fetch them again okay then
I reach home and spend time with them at
home then in the evening about after
dinner I do another two hours and come
back okay yeah that's the and that was
it for two years yes correct for someone
who is taking a voluntary break I would
say yours is voluntary in a sense for
someone doing what you did
how much would you say he or she should
set aside financially I know you said a
Year's worth of expenses is there any
advice on top of that well our expenses
mainly covers a lot of unnecessary
purchases online nowadays so if we can
cut that away to minimum like maybe just
the necessaries item for the household
we would usually cut at least 20% of
what we usually spend that's my advice
so if you plan to take 6 months you
prepare about 80% of what your expenses
right it should be enough for you to
still live comfortably and doing what
you like to do as well so yeah that
that's pretty good advice and I like
that you put numbers to that I think
it's true you can cut 20% sometimes even
more of what we normally spend on a
day-to-day basis and if you can do that
you can probably survive on I guess the
remainder of the amount of what you used
to earn my next question is how would
you advise this person to prioritize
the
finances okay the prioritize are the
things that is a must pay must pay like
housing your car if you have a car and
of course the kids allowance that you do
not want them to worry that there's no
no food on a table these three things
are the most important thing that you
need to Parise in terms of cutting away
I mean the car was there because you are
in sales and it's something that you're
used to having and you need you needed
them for the kids so the other option is
downgrade a car if you necessary because
a car if is just a car for you to F
around of course don't downgrade to uh
those need a lot repair you just to be
do the due Dent to go for inspection all
this all those repairs add upost even
more exactly exactly okay so you took a
career break to complete this MBA in and
the point was to upgrade yourself all
said and done Andy would you say it was
all worth it the two years of pain the
cutting back on
expenses keeping things status quo at
home for the kids and that conversation
with your wife was it all worth it yes
it's all worth it yeah would you do it
all over again if you could I would do
it again but not for two years two years
are a little bit too long I would say
because after a while you realize he
keep doing back the same thing and over
again is is very difficult so I think a
career break for half a year to one year
is good enough to re enjoys yourself to
ref Focus yourself on what you want to
do as well did you feel going back to
work now in your current job you were
entering with a different perspective
yes I did enter with a different
perspective and what is like what is the
real goal for me at the end of the day
of a career yeah are you guys still
cutting back on expenses now that you're
back at work uh not really now it's well
it's not say cutting back but like I say
it's not just taking a break sometime my
advice is to those who also doing a
career switch as well so you may have a
pay cut that's where you also need to
learn how to cut back as well so yeah I
think it's always a work in progress you
know always I think would I be correct
to say that you I guess are more
watchful of your expenses if you're not
cutting back on them now that you're
back at work are you more watchful of
them more watchful yes so we learn to
budget a little bit more to cut back as
well so when to spend and when not to
spend is it necessary or not necessary
yeah these are simple questions but they
can be sometimes the most important ones
right you have to be real with yourself
at the end of the day and have a wife
like yours thank you all right so what's
your best takeaway from this two-year
career break spending time with friends
and relatives is very important we can't
live alone in this world we need friends
because if you have wives and kids they
are the next best person that you know
them and they know you the best yes okay
awesome sabatical career breaks they
seem to be quite rare here in Singapore
but they're not unusual as is the case
with Andy here in a country where the
cost of living is a constant stress
point so many of us wouldn't dare take a
career break for the risk of losing not
just money but also worrying about how
it will affect our careers but depending
on your need for one a career break can
still be highly beneficial in perhaps
other intangible ways thanks Andy for
sharing your experience with us and for
giving us the advice we need thank you
we really appreciate it and thank you to
you listener if you have enjoyed this
episode of Money Talks there's more
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tell us what you think of this episode
or others that you've listened to we
want to know the team behind Money Talks
is Jacqueline Chan Joan Chan Tiffany an
chrispina Robert sa win jessin tan and
I'm Andrea h master your
[Music]
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