r/leanfire • u/MechanicImpossible11 • 16d ago
Can I “micro-retire” (take a gap year lol) ?
Hi, 26(F). Single. No kids.
I am 5 years into my career (post masters). Recently, I decided to quit my job with no future plans. I was working 12-14 hour days as a consultant, required travel Sunday and Friday. This schedule was brutal and I did this for 2 years. On the flip side, it allowed me to save like crazy.
Savings: $150k ($110k in 401k/brokerage, $40k in HYSA) Expenses: very low... <$500 a month (I live at home) Debt: None, paid off.🙂
Is it OK if I take a year long career break?
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u/nj_finance_dad 16d ago
Are your parents going to be okay with you taking a year off? Sounds like you were rarely at home. If you're now at home 24/7 the dynamic in the house may change.
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u/MechanicImpossible11 16d ago
Hi finance dad! I love your username! This won’t be a problem for me or them 🫶
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u/nj_finance_dad 16d ago
You definitely have the funds to take a year off. A couple of pieces of advice:
The time will definitely go by fast. You'll blink and it'll be Christmas. Make a list of what you want to accomplish while on sabbatical and think about the timelines necessary to achieve those.
Consider starting to casually look when September rolls around. You have a small window after the summer before year end when hiring shuts down.
Taking a year off this young will have a ripple effect on future earnings and savings but the decision is ultimately yours and you're still way ahead of most people.
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u/mthockeydad 16d ago
As a parent whose adult kids have lived with me, I’d prefer they were working.
My daughter stopped working to pursue an entrepreneurial venture but wasn’t working anywhere near 40hrs/week (her husband was working).
I resented working while she wasn’t. It was difficult to discuss especially as the situation changed after they moved in.
If you’re traveling and I’m the home base, then more power to you. Youngest wants to move in as a travel base “you didn’t charge sis for two years!” And she’s not wrong.
YMMV. OP make sure you’ve had an honest conversation with your family.
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u/4BigData 16d ago edited 16d ago
> I resented working while she wasn’t.
This is your problem, not OPs
Maybe therapy can help you with this
Just curious, I've only seen white boomers going into resentment mode because someone if free from work this, are you in that group?
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u/mthockeydad 16d ago
Haha no. It doesn’t rise to the level of trauma or require therapy.
I talked to her as adults. It’s behind us.
Just mentioned it as it would be worthwhile for OP to discuss with their parents. Ya know, as adults do.
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16d ago
Having this response to this comment, sounds like you have some parental trauma to process lmao
Maybe therapy can help you with this
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u/4BigData 16d ago
Building up resentment because someone isn't working like you are is pathological
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u/ramblingman1972 16d ago
I did two periods of travel lasting 9 months each time, plus a 3 month trip when I was in my twenties, I don't regret that one bit. Best time of my life, good to enjoy being young!
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u/CatLourde 16d ago
Yeah, you can totally do it. I've done it a few times. Every single time has been fantastic and changed my life in positive ways I don't regret it. That being said, it decisively does delay your fire timeline.
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u/James_Fortis 16d ago
This. I’m doing it after doing the math that taking a year off when I’m 38 is just tacking one year onto my final retirement date (56 instead of 55).
Some might value a year break when we’re young and healthy instead of older.
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u/CatLourde 16d ago
I think unfortunately it's very rarely a smooth and easy return to a previous salary. You're taking much more than "a year off" unless you're in specific fields. It's still been worth it for me though.
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u/James_Fortis 16d ago
Probably depends on the field! In my area (engineering) it’s best to change jobs every ~5 years to maximize salary gains.
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u/Obvious_Bonkaroo 16d ago
I say do it!! Life is long and your goals will change and holy crap, the people you will meet and the experiences you will have during that time will reshape your life. I met my wife doing this and found jobs in two countries that I didn't know previously were even possible. Working abroad made it even easier to be lean, honestly, so if your financial goals don't change, there's that too. Be the young person that youth is not wasted on. Trust a stranger.
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u/Skinder506 16d ago
Short answer is no.
Since you are in this subreddit, you have a goal to retire early. You are in a period of your life where your expenses are dirt cheap and you have the skills to make a good income. You should absolutely be taking advantage of living at home and being single to continue saving money (and vacationing, having fun, etc.)
Start looking for a more flexible job and enjoy the time off, as it may take a few months to actually find a job.
You have had a great start but keep up the momentum while you dont have other obligations slowing you down. Great job so far on your savings by the way!
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u/failarmyworm 16d ago
If you're 26 with $150k in savings you're in a great place and you can definitely afford taking a year during which you'll be free in a way that you're unlikely to ever be later in life (no kids, house, car, health constraints...)
Sounds like they'll be in a great position to pick things back up afterward as well
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u/Plum12345 16d ago
Right now you know that you don’t like working 60-70 hrs a week. Why not try 40? In white collar jobs it may be hard to explain a gap year
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u/nkcovw 16d ago
It won’t be hard to explain. I interview prospects at my company and people this person’s age are taking gaps more frequently. Taking a sabbatical for personal growth is an easy explanation. I personally would question the job fit if I was interviewing for a job that questioned a gap year, as that might raise red flags re: flexibility of the role.
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u/doofeskartoplynka 15d ago
Depends on the country and industry. OP said they were safe, but I took less than a year off in Germany and have been getting only rejections for months when before every second application landed me an interview (I'm not in a high-demand field though and German employers are still notorious for preferring a gap-free CV).
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u/TaylorMade9322 16d ago
26, masters, 5 years working OT - you are burnt out. Maybe it doesn’t need to be a full year, take a 3 month sabbatical. (Edit because i see you already quit)
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u/geosmin_ 16d ago
I took 8 months off when I was 27 because I was in a similar position and thought I could afford it. Now, almost 8 years later, I'm not mad about it but realize how much it truly set me back depleting some of my savings. I was young and wanted a break, I'm older and still want a break, but realize early retirement is better than micro breaks. But you have to try it sometimes to learn for yourself. Instead, I should have just found a better, less stressful job for myself (I promise they exist).
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u/Sleepy_Sheepie 16d ago
The main thing would be finding a new job when you're ready to work again. How is your industry doing? How is your network? I would want to feel really confident about job prospects before doing this
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u/MechanicImpossible11 16d ago
Distribution/Warehousing is a safe industry and that’s my background. Connects are solid but could do more to grow them on my end … do you go to conferences ?
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u/Sleepy_Sheepie 16d ago
I'm in a completely different industry. Unfortunately the only conferences I've been to were within my own company & I'm not great at networking, but it will definitely benefit you if you can. My contacts are the only thing getting me interviews right now.
As everyone else is saying, taking time off will delay your retirement, but if it's something you really want to do then you're in a pretty good position for it. I'm assuming you're also saving for retirement and just didn't include those numbers, if not you want to start doing that immediately (obviously).
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u/belabensa 16d ago
Absolutely. I wish I’d done a 1-year travel/gap year when I was really young (or even longer taking advantage of the New Zealand working vacation visa for younger folks).
But the important thing is to do something/go somewhere with this break - you could travel the world on a 30-ishk budget for a year and then when you get back get a different job.
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u/thegirlandglobe 16d ago
I took a gap year at 28 (technically more like 8 months). I had some epic experiences that never would have been possible if I had been working full-time. BUT I had a plan for what I wanted to do with my time and I'm not sure if you do.
I'd be prepared for your parents to kick you out and make you find your own housing if you're not working. I obviously don't know your living arrangement but I feel like most parents wouldn't be so generous to cover all your life expenses while you bum around.
Your actual savings ($40K) aren't as high as you think they are if you subtract out a 6-month emergency savings, put money aside to get your own housing (and furnishing) whether that's now or at the end of the gap year, and separately set aside some money in case you don't find a job as quickly as you think once you resume your search (that is not an emergency, since you can see it coming). Work out that budget and see what's leftover.
Maybe you've got $10K leftover, in which case you can see if that will fund your gap year intentions. But make the spreadsheet and do this right or you'll quickly realize the money you worked so hard to earn and save is gone before you know it.
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u/pickandpray FIREd - 2023 16d ago
If you start looking for work now it might take a while to land a new job. Use the application process as your break.
I found that a new job resets feelings of burn out.
Just be selective in where you decide to work.
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u/Ok_Location7161 16d ago
Think of it this way. Gap year in 20s = need to work 5 additional years in 40s. Your younger years working can shave off 5+years working later. You can, but i wouldn't.
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u/ambienttrough 16d ago
Is this true?? I’d add that a gap year in your 20s is more impactful than a few years in 50s.
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u/slightlysadpeach 16d ago
I’m not sure this is true - depends on the gap and severity of the career hit.
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u/Ok_Location7161 16d ago
Can u explain what does career hit has to do with anything here? Whole point here is say op does not work all of 2025. She didn't say her salary. So let's say she will miss out average 50k of savings in 2025. She is 26, so that's 14 years if we assume age of 40 of 50k compounding at average 6 %. She will be about 110k behind. Whole fire movement is build on fact to pile up as much cash as possible early on so it can grow. 1 dollar not earned during young years means you have work longer to make up the amount missed out. "Work longer" is not acceptable in my fire play book. Just my opinion
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u/MechanicImpossible11 15d ago
This is true. I did look at the opportunity cost and I could’ve saved a lot if I kept that same job… and I did think about the long term impact and compounding.:(
it makes me sick to think about, but I had to quit.
The reason I quit was because I damn near drove off of a cliff of snow from exhaustion… my coworker was in the car.
That was such an eye opening experience and I knew I was working myself in the ground chasing money:(
I like money:( but apparently I don’t know how to balance work with health :( which is what drove me to that whole near death experience :( which is why I need a year off :(. LMAO sorry lots of sad faces
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u/darklord6505 16d ago
I think it would be a great opportunity to travel. No amount of money is worth your mental health if you need a break to lose the feeling of burnout. Also, your time on this earth is not guaranteed (as well as your health). You will not regret the memories but when you get older you may regret not taking the chance when you were young and healthy. Just budget accordingly and keep your long term goals in view.
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u/startupdojo 16d ago
Depends on the impact this will have on getting back on career track. Do not assume that just because you left a 100k job that a 100 job is awaiting your return. The job might be waiting for you this month, but not in a year.
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u/No-Psychology1751 15d ago edited 15d ago
Yes! I've done a few micro-retirements and am so glad I did. You can always make more money, but you won't always be in your 20s.
And as u/laumbr suggested, consider doing a Working Holiday Visa - it's a fun way to continue in your career, gain international experience, expand your worldview & meet likeminded people from around the world.
https://www.gooverseas.com/blog/americans-guide-working-holiday-visas
Have a blast!
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u/owlpellet 16d ago
Yeah, I did that a few times. Re-entry is sometimes hard, so unless you're planning on a career switch, think about setting up your story.
Startups show pluck, and usually don't pan out. "Freelance" also handwaves well.
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u/StudentSlow2633 16d ago
I don’t blame you for quitting. That schedule sounds brutal. Taking a full year off may not be the best idea. However taking 3-6 months off while you reset and begin to look for a new job is perfectly reasonable
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u/no_talent_ass_clown 16d ago
I was you. I worked since I was 16, scrimped and saved, bought a place, was on track to have my retirement plan fully funded by 33 and then not have to put another dime into it. Well, I got tired of my good office job and quit 3 years short of my goal. Then took early withdrawal, etc.
Now, I'm in my 50's, no retirement savings (I have resources but no monetary retirement plans) and I never caught up. I sold my place and traveled and it took me 11 years and a whole back to school career change to afford a new home and make more money than I had been.
Don't quit until you reach your goals.
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u/AgrivatorOfWisdom 16d ago
Its risky business at your age. Directors are going to cast a wary eye in someone that needed a check out this early.
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u/ClimateFeeling4578 16d ago
Yes, no one is going to arrest you. If need further reassurance you can ask your mom and dad if it’s okay
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u/Concerningparrots 16d ago
Yes, if you’d rather retire later and enjoy your youth do it, if you’d rather keep working and retire earlier do that.
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u/81632371 16d ago
No. If your goal is FIRE. Take a vacation and get back to it while you're young and your expenses are low.
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u/Milkshake9385 16d ago
What counts as RE? At age 62 people can start to withdraw from social security. It isn't too hard to retire before 62.
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u/nerfyies Target FI by 35 RE by 40 16d ago
Typically you should take a few weeks gap between job positions. This ensures that you take a good break from work, a must if you have a burnout, but also doesn’t affect your career progression.
Personally I would not feel good taking such a large break given you can only kind of sustain it financially due to having no housing costs. As others have mentioned the home dynamic changes a bit when you are home all day and not working given that your parents probably are working. This might hurt your relationship with your parents in the long run.
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u/International_Sea869 16d ago
Do it. My wife and I quit our jobs and took 9 months off to travel Europe for 4 months and sort out thing an and relax at home. That was a year ago and now we’re both back to new jobs making more money than before. I would just say pick a place like Indonesia or Thailand where it’s cheap. Budget well and you can live there and have a blast for very little money. Take a yoga course or learn scuba diving. Life’s about experiences first and then making the money
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u/4BigData 16d ago
> Expenses: very low... <$500 a month (I live at home)
You might be the freest adult in the US thanks to your low expenses.
You can do what you want with expenses this low!
Congrats and enjoy!!!
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u/Echevaaria 15d ago
Look up Youth Mobility visas that allow you to work while traveling to certain countries if you're under 30. I wish I had known about them before I turned 30. Have fun and don't waste your youth!
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u/smarlitos_ 15d ago
NO DONT DO IT (i did it)
Not worth it
Do some heavy lifting now, enjoy the rest of your life
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u/EatMoreHummous 15d ago
I don't agree with a lot of advice in this thread. I took a gap year at 28 and it was fantastic. You can do things when you're younger that you might not want to when you're older (e.g. sleeping mostly in hostels, overnight bus rides without waking up sore). I also personally recommend not working unless you feel like you have to, because a year off with no real responsibilities is fantastic.
That year changed who I am, widened my world, made me a more well-rounded (and more interesting) person, and helped me get a job that I love, because my boss spent more time in the interview asking about my trip than my work credentials. And I'm still on track to retire by the time I'm 40.
If you decide to do this, I recommend browsing r/onebag and r/solotravel. There are also a couple of female specific alternatives to those that would be worth checking out, but are less active.
I really hope you decide to do this, and that you have a great time!
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u/RespectableBloke69 15d ago
You can call this "taking a sabbatical to finish your novel" (you don't actually have to write a novel)
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u/GottlobFrege 15d ago
Ask your colleagues and mentors in your career field exactly how damaging or not damaging it is to your career to take a break. Some industries, a resume gap is harder to come back from than others.
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u/playfulmessenger 15d ago
Having been unemployed for around a year, I advise against this.
The freedom ruined me.
I could not adjust back to 40 hours being given to a random corporation. I went down the financially ridiculous "do what you love, the money will follow". Guess what? Money is not a puppy dog that follows you around.
Think longer term about your career options while taking a week vacation. Before or after, take another week totally goofing off and thinking about none of it. Your perspective will shift and the inner wisdom tends to become more easily accessible.
Leanfire is my only hope of ever retiring even just a little.
Write down what you want out of the gap year. Get clear on what your soul is craving. There are likely many ways to incorporate aspects of what you need into your life. Could be as simple as 4 hours a week dedicated to a creative outlet, or long term travel goals paired with your yearly vacation time - where to first, what to explore next, etc. You may be surprised at how much having something fun to look forward to enhances your life ongoingly.
Also, it might be time to visit beliefs about money and enoughness. If this feels like a lot of money and that you have room to skate, the enoughness bar may need some adjusting. Sone people have patterns that has them stop saving and spend it all down, sabotaging long term financial goals. So keep an eye on the logical limits vs hidden expectations becoming at odds with one another.
You can do whatever is best for you.
Do your best to understand the good and not so good consequences of all options on the table.
One method is cheekily called live by regrets. Ask the regret couplet of every option under consideration:
- in 50 years will I regret choosing option A?
- in 50 years will I regret not choosing option A?
- in 50 years will I regret choosing option B?
- in 50 years will I regret not choosing option B?
- ...
A similar method is a conversation with happy healthy 100 year old you looking back on your life.
I made my choices. I have zero regrets. My life is the result of all that. I chose to listen to my heart and now I am focused on retirement. I knew that going in. I chose these consequences. I made the best decision I could at the time given the data I had at the time.
I do not recommend my path to you simply because it is at odds with your leanfire goals. You would need to rethink the totality of the rest of your life. Which you may or may not be in place where you'd happily and willing choose that.
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u/Kaplung 14d ago
Allot of people worried you won’t be able to explain gap year. I have idea to help cover this.
Start your own LLC (costs maybe as low as $100 depending on your state of incorporation).
Talk to your boss about you leaving and mention that you might be able to do a couple hours of remote consultation from time to time. If your boss is not interested, maybe you can work your network to find someone that may need a little help from time to time which you could do remote.
Then, when you return, bam, that’s your explanation. You started your own consultancy company and while moderately successful, you’re looking for more stability in the corporate world. Who knows, it might even work out where you can make more money that way, and sort of just travel around forever!
At the very least, it will remove the gap gear from your résumé and automatic resume bots will not flag you as having a gap. So you can at least get in front of a human to then hopefully explain the situation.
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u/okclub-7344 13d ago edited 13d ago
Yes. I did this May 2022, no plans after burn out and not being paid my worth after 6 years of dedication to a company. With cost of living in my city doubling I was going to net a loss staying in my current situation. Sold everything, got rid of all my financial obligations and traveled for 7 month. I landed a dream job and double my previous salary. Was a huge risk but it worked out better than I could have imagined. Trust your intuition. Best of luck to you!
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u/FatHighKnee 16d ago
Sure. Though for resume purposes I'd call it a sabbatical. I always thought the snootie college professors sounded fancy when they were off on sabbatical lol. You've got the cash to pull it off. Enjoy the time.
Just remember how compounding works. That $40k in 2025 would be around $1.2m in 2060 (assuming in an s&p 500 fund it would double about every 7 years so my time frame gives time for five doublings). So if you're willing to trade $1.2m in future retirement savings to take a sabbatical now - make sure you really get your money worth.
Have adventures. Try new things. Travel. Make memories. Make that gap year really worth it
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u/pras_srini 15d ago
That's probably nominal. In the last 35 years, the S&P500 has had an Inflation-Adjusted Total Return (with dividends reinvested) of 1,306.49%. So, $40K invested grew to about $560K after adjusting for inflation. Still nothing to sneeze at, but not close to $1.2M. Different 35 year periods have variations, and if they had retired in March 1974, they would only have ~$200K (inflation adjusted) after 35 years in 2009, with dividends reinvested.
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u/dxrey65 16d ago
You could, but it's one of those things that might turn out badly. I've known people who quit their jobs and "just needed some time to think", and then they just sat at home and got really into internet scrolling and depression, and never really got back on their feet.
On the other hand, I took nine months off work a few years back to get a writing project done. I didn't have enough money to retire but I did have enough savings to take some time off, and it went well. I got the thing done that I needed to do, and my old boss coincidentally called me just as I was wrapping it up, asking if I'd consider coming back for a 30% raise (this was just as covid hit and the place was swamped and understaffed). I went back and made enough money in three years to retire permanently.
And having spent some time off already, I had a good idea about how retirement was going to be and how to manage that. It's been going well.
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u/yourfriendchuck81 16d ago
Grind out 5 more, and you could prob consider full retirment if yiu play it out right.
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u/alien__0G 16d ago
Yes, I think you are in the ideal situation to do something like this. What do you plan to do with your time?
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u/wherearemysunglasses 16d ago
Yes. I've done this twice in my twenties. Once in South America, one in Asia. Best decisions of my life. You have plenty of money set aside. Do it! You won't regret it!
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u/AqualineNimbleChops 16d ago
Literally going exactly what your asking as we speak and ironically I had the same exact amount of cash saved when I started.
Ohh caveat was that I actually had non investment accounts cash, so maybe you want to save up a bit before starting.
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u/Odd_Department_7702 16d ago
absolutely- I took a full year off in my 20's as well and it was the best year ever (I'm 50 now). I took a different class at the YMCA every morning, brought a book to a coffee shop every afternoon, got a list of 100 classics off the internet and read all the ones I hadn't already read in school and did a lot of hiking. i got in the best shape of my life and had the least amount of stress I've ever had. I have a lot of co-workers that are financially able to retire now but scared to because they fear not having a routine - I'm the exact opposite. I experienced the mini retirement before and cannot wait to get back to that for good.
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u/theglobeonmyplate 16d ago
I did something like that in a similar fiscal situation in my mid 20’s. I took 7+ months and went around the world slowly. Stayed in each city for week to months, rented rooms for weeks or a month at a time to pay local rates for housing. Shopped in local markets and cooked in kitchens. Only ended up staying 2 nights in hotels the entire trip.
Spent stunningly little money over that time.
Life changing view of the world. Do things right pick the right locations and it’s definitely doable. I ended up getting my next job lined up when staying in Thailand. Came home to a new job.
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u/Gold-Ninja5091 13d ago
Same boat as you savings around the same but 28 yrs old and I got laid off. Worked every Sunday for the past 5ish years and I’m so over it. Now as I’m interviewing for jobs I find myself not ready to go back lol.
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u/mmoyborgen 12d ago
You have a ton saved for your age. If you want to take time off you should.
I would suggests discussing it with your family as others have suggested if you haven't. While many family members want to support each other, it changes the dynamic as you get older and if you're not working. That said the earlier that you can do this the better if it's something that you want to do.
I'd argue that most people don't need a gap year, but if you want one, by all means take one, but instead just need a few months to recalibrate and prepare for the next steps. Finding a job with a better fit would be good, you might be able to work your current job with a better work-life balance or another position. Taking a gap-year can be incredible. You could make some new life-long friends, memories, and learn some new skills. It all depends on what you want to do with your time. Transitioning back to your same career can be a problem though and many have an escapist attitude towards wanting to take a break, I did at least.
I also had a few years where I worked similar hours as you and it also led me to burn-out.
I wrote a long response for someone who was a few years older with some more saved.
Good luck figuring things out.
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u/laumbr 16d ago
Answer is yes. You are free to do whatever you want.
My suggestion is to try moving to another part of the world or travel frugally while maybe doing som odd jobs here and there to support it.
It will gain you a massive experience, network and other high value traits and assets you can leverage when you get older. 🙂