My intentions to lean more into blog updates after giving notice at my job were genuine. They were also overtaken by events, namely, my job still trying to murder me. No joke, today is a holiday, and I have just over 1 month left at my job, but I was having nightmares about work last night.
I’m a little over a month out from my first-ever career break. If you’re new here, I’ve worked in defense for 13 years, and my current position for 3. It’s the highest-paying job I’ve ever had, but a few months ago, I realized I just can’t do it anymore. I’m completely burned out and want to try something different. I gave notice on 13 December, letting them know my last day will be 24 March. I figured that’s enough time to allow for training my replacement and prepare my household finances.
A gradual wind-down of workload would have been nice, but apparently I’ll be going out with a bang because my program has decided to exercise Murphy’s Law.
Until I can gleefully primal scream on my way out the door on my last day, I’ve been doing some work behind the scenes to make sure my husband and I will be in good shape when we lose our largest stream of income.
These are the top 5 things I’m doing to get our finances in order for my break:
1. Since January, we’ve stopped maxing out every retirement account.
My husband had enough savings to fund his Roth IRA, so he did that and is set for 2022. I’ve funded $1700 of mine because I just can’t help myself, but I doubt I’ll hit the $2000 contribution mark before leaving my job. I’m still contributing to my HSA and TSP (to the match only) until I leave my job.
2. We’re stashing cash.
What would have gone into maxing out retirement accounts has gone into a savings account that will be used to supplement my husband’s income until I get back into the workforce. I’m really only planning to not work at all in April. By the May/June timeframe, I’m planning to get into some part-time work that sounds fun and will help pay the bills.
3. We’ve started making calls about health insurance.
If you live in the US, you know just how RIDICULOUS this cost is. Even with a high deductible health plan mostly covered by my employer (the US government), we still pay several hundred dollars a month for it. I looked into short-term insurance and plans on the healthcare marketplace, and they’re quite pricey. We’ve opted to enroll in my husband’s employer-provided plan. It’s just working out the logistics and documentation to set that in motion, but this is easily the step requiring the most footwork.
4. I’ve been spending time in the frugality corner of YouTube.
I actually like it there. My parents weren’t coupon-cutters or even sale-shoppers. My mom always wanted us to eat the highest-quality food we could get, so it was a lot of organic produce, wild-caught or grass-fed meats, and health food store shopping. My family probably spent $1000+ on groceries for a family of 4 in the early/mid-2000s. Peering into the world of frugal living has helped me reframe my thoughts on food and find creative ways to save on our grocery bill.
NATURALLY, I’ve picked a time in US history to leave my job where inflation is going bananas. But since I won’t be working for a while, I consider meal planning and budget-friendly shopping to be my job. I’ve found some good pointers on saving on utility costs too. My favorite channels are Under the Median, Frugal Money Saver, and Frugal Fit Mom. They are absolute NUGGETS of human beings with great channels. If you have another channel to suggest, please leave it in a comment!
5. I’m doing budget practice runs.
I took my Zero Based Budget spreadsheet and mapped out April’s budget without my income, without shoveling money into retirement accounts, etc. It will take some getting used to, but learning to adjust to changes in income is handy skill to have in my opinion. Life can throw you curveballs, so it’s better to know how to adjust when necessary.
Is this creating some extra work? Sure, but I’m so beyond grateful that we are in a position that allows me to do this. A little prep work and lifestyle shifts can go a long way.
Looking forward to feeling like a human again.
Any pointers you’d life to share in prepping finances for a big life change like this?
Any YouTube of IG account suggestions for frugal living?
-K