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Research from Hays recruitment in 2019 found that 64 per cent of women and 49 per cent of men take at least one career break in their lifetime.
For women, the biggest reason for a career break is having children, coming in at 41 per cent, followed distantly by travelling, at 14 per cent.
It's quite different for the men, with travel being the biggest reason at 25 per cent, followed by studying or retraining at 21 per cent.
Taking a break can allow you to achieve other goals, or simply to step back from the daily grind to decide what your goals are.
That headspace can be crucial, to stop you getting bogged down in the weeds of day-to-day living, and make sure you're actually heading in a direction that you want to go.
The trick is to prepare, so that your new headspace isn't crowded by money worries during the break.
Here are top tips to get you through.
Decide how much of a break you need
What you want the break for, and what resources can help you, will shape how long you can take a break for.
You might just want a couple of weeks in order to rethink your career.
You might want a full year in order to have a child.
You might want something in between, while you pack your life into a van and travel around New Zealand, rethinking your priorities.
Whatever it is you want, get clear on that from the start, then check what you've got in terms of savings and government or employer support to help you do it.
Set groundwork with a good old-fashioned budget
Sit down to work out exactly how much money is coming in, and going out.
Then figure out how much of that is optional. You need a roof over your head, but could it be a cheaper roof? Would you have the same transport costs without going to work each day? What treats could you cut, once you were focused on the bigger goal of a break from work?
Check through your bank account for any automatic payments going out, and decide which ones you could cancel, or try to negotiate for a lower price.
Companies love subscription payments, because customers tend to forget they have them, and keep paying without using the service.
Now's the time to decide which ones need to go.
You're likely to find you don't need as many treats while you're off anyway, especially if you're taking the time to reconsider a career that's making you miserable.
Consider the cutbacks a way to invest in yourself.
Clear the decks of extra responsibilities
If you can, cut out the things that will hold you back.
Any smaller debts that can be paid off, should be. They'll only be one more worry during your break.
If it's a longer-term, or bigger debt, decide how you want to tackle it.
Can you afford to keep paying it while you're away? Or could you delay the break until it's paid off?
Plan how to look after future you
While a career break can be a wonderful thing, it can also hurt your financial future if not handled carefully.
After all, stepping out of the workforce to raise children is one of the reasons why more women are in poverty after retirement.
KiwiSaver is chock full of opportunities for free money, and if you can, it's worth keeping going.
If you put in $20 a week, or $1,042.86 per year, you get a tax credit of $521.43 put into your account.
If you're heading off on maternity leave it's worth asking your employer if they'll keep contributing their employer match in your absence.
It's certainly not mandatory, but some employers will, considering they've already factored that money into the budget.
Hey, don't ask, don't get.
See if you can get support
If you're heading off on maternity leave, check for the full entitlements through your HR department or payroll.
While the Government will give you a certain amount of paid leave as a minimum, some employers will also build in sweeteners designed to entice you back to work, such as a baby bonus when you return.
Whatever type of break you're planning, if you have a partner that you share finances with, talk to them about how you want to handle this together.
Dropping to only using one income before you go on leave can both help you save, and serve as a test of how little you can manage to live on.
Some employers also have a sabbatical system that lets you take extended leave, while still having the security of a job to come back to.
This column is general information only, and not individual financial advice.
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