There are 25 steps to a Year Off you should consider before setting out on your journey. By accomplishing each step below, you are setting yourself up for success during your Year Off and when you return home. You also prevent some of the potential negative consequences of a Year Off. And you remove a lot of the worry that may pop up while you’re away.
You want to focus on your dreams during your Year Off. You don’t want to worry about the long-term negative consequences of an extended time away from your career. It’s good to have a job to return home to. You want to have money saved to cover all the potential costs.
So here they are……
The 25 Steps to a Year Off
1. Graduate from college and start your career
Avoid the temptation to take a gap year before you start working. Jump right into your career after college and start gaining as much work experience as possible. Become the best employee your company has.
2. Organize your life
Know when things like your driver’s license and credit cards expire. Create lists to keep track of that sort of thing. Figure out everything you spend money on. Automate your monthly bills. De-clutter your material possessions. Start living a more simple life. Read my post about organization in preparation for a Year Off.
3. Organize your time
Stop wasting time on activities that don’t give value to your life. Shift your focus from instant gratification to delayed gratification. Start focusing your time on activities that get you closer to your Year Off.
4. Become physically and mentally healthy
Implement an exercise routine and adhere to it, day in and day out. Clean up your diet. Seek professional help if you are in a bad mental state, and become happy with your life as it is. You don’t want to run away from your problems during your Year Off. You want to have them resolved ahead of time.
5. Avoid consumerism and debt
Consumerism is a preoccupation with and an inclination toward the buying of consumer goods. Do everything to avoid this. Do not accumulate credit card debt. Pay cash for everything you can. Delay buying a house or condo until later in life.
6. Calculate your current income and expenses
Figure out exactly how much money you make every year and figure out exactly how much money you spend every year. This will help decide when your Year Off can start. Know everything you spend money on and how much you spend. This will shed light on areas where you can cut back on spending.
7. Figure out how much money you need to save
The amount you need to save includes money needed for an emergency fund, to pay off debt, to get a good start on your retirement savings, and to save for your Year Off.
8. Calculate your Year Off Age
Your Year Off Age is the age you put your working life and career on temporary hold to pursue whatever dreams you have. You can calculate this using your current income and expenses and by knowing how much money you need to save. This is your goal age for beginning your Year Off.
9. Come up with a pre-Year Off budget
Know exactly how much money you can spend every month before your Year Off. Practice delayed gratification to help you adhere to your budget. Read my post about creating a budget for life before your Year Off.
10. Reduce your spending
Live as cheaply as possible. Look at the budget you came up with and find ways you can lower your expenses even more. The less you spend, the more you’re able to save and the quicker you’re able to start your Year Off. Read my posts about how to cut spending on your yearly expenses, monthly expenses, and daily expenses.
11. Establish an emergency fund
Have a good amount of money saved to cover any unexpected costs before, during, and after your Year Off. I recommend an emergency fund of $10,000.
12. Pay off debt
Start with your high interest debt first, like credit card debt. Then move on to your lower interest debt, like a car loan and student loans. All of this debt should be paid off in full before starting your Year Off.
13. Save for retirement
Getting a good start on retirement savings at an early age allows you take advantage of compounding interest over a longer period. Start a monthly contribution to your company sponsored 401k or an IRA. Take full advantage of any company match while paying off your debt. Once you pay off your debt, maximize your yearly contributions. I recommend 1 year’s salary saved in your 401k or IRA before starting your Year Off, but any amount is better than none.
14. Save for your Year Off
Figure out how much money you need for your Year Off. I recommend $40,000 for the year. This will cover all living expenses and leave you with plenty of money to pursue whatever dreams you may have.
15. Learn as much as you can
Read as many books as you can about a variety of subjects. Learn about personal finance and investing and the stock market. Read self-help books that help you improve your life. Read books and magazines and blogs about long-term travel. Dust off your library card and learn all of this stuff for free. If you have the time and extra money, take some small trips to learn what kind of traveling you like.
16. Maximize your earnings or get a side job
The more money you make, the quicker you’ll reach your Year Off savings goals. Ask your boss for a raise. Pick up over-time shifts. Become a Uber driver. Find any kind of side job to make extra money on nights and weekends.
17. Reach your target amount of money saved
Track your progress on your savings goals. Know how much more money you need to save. Keep recalculating your Year Off Age when you start making more money or find a way to cut an expense. Start a countdown on your calendar to the paycheck that will put you over your savings goal.
18. Set the Day 1 date of your Year Off
Set the exact date you will start your Year Off. Make it 6 months in advance to give yourself plenty of time to earn the last amount of money you need and for last-minute preparations. Plan and book a big activity for the first week of your Year Off, like climbing a mountain for charity.
19. Make personal decisions on your relationships
If you’re in a relationship, you need to decide whether it’s a relationship you want to continue to have. Can your significant other come with you? Are they OK with you leaving for a year? Do you see yourself spending the rest of your life with this person? If not, then you need to make one of the hardest decisions of all. Whether to continue the relationship or not.
20. Figure out a leave of absence or whether to quit your job
A leave of absence is preferable to quitting your job. You want to have at least some sort of guarantee of a job to come home to. This will keep you from worrying about a job search when you return home. But be ready to quit if need be. Talk to your employer and see what’s possible. It’s likely to be a negotiation. If you’re one of your company’s best employees, you’re more likely to work out some sort of a deal.
21. Figure out your Year Off plan
Develop an idea of where you want to go and what you want to do. Start looking into permits and plane tickets and visas. Develop a theme or themes for your Year Off. Plan some time at home with your friends and family to break up your travels. Start recruiting friends and family members to join you for a week or two.
22. Travel vaccinations and travel insurance
Don’t leave home without these two things. Know what travel vaccines you need. Obtain them while you still have health insurance with your employer. Pay for a whole year of travel insurance up front, and get the best travel insurance you can find. You’ll regret it if you need to use it.
23. Eliminate monthly bills
Stop your internet bill. Cancel your Netflix and HBO Now. Stop all monthly and yearly subscriptions. If you don’t need your car during your Year Off, find some place to park it for a year and cancel your car insurance. Eliminate all recurring payments you have except your cell phone bill and health insurance bill (if you choose to continue health insurance).
24. Move out of your apartment and reorganize your life
Ask a friend or family member to store your stuff in their basement for you. Get rid of whatever stuff you no longer want or need. Reorganize the lists you created in step #2. Notify your bank and credit card companies of your travel plans. Finalize any travel plans you have.
25. Work your last shift, say goodbye to friends and family, and START YOUR YEAR OFF!!!!!
You put in years of hard work and delayed gratification. You’ve dreamed of this moment for a long time, and it’s finally here. You might be feeling a bit nervous about what will happen over the course of your Year Off, but you are incredibly excited and giddy. There’s a world of possibility in front of you. You have nothing to worry about. No adult responsibilities or bills to pay. No bosses or customers or clients to answer to. Only the open road ahead of you.
Start working on the 25 Steps to a Year Off today. Which ones have you already started or accomplished? Can you start a step today? Which ones will be the most difficult?
Please reach out to me with any questions!
Check out my Year Off Planning page for more information on planning your Year Off.
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