Finding the balance between work and personal life isn’t easy. Many of us juggle many responsibilities–family, children, parents, and things can verge on the impossible if you are working on your venture.
Lately, there has been a flurry of pop culture workplace trends and the new limelight candidate has arrived– “Micro-retirement.”
While the name may come off as bizarre to you, the trend is a welcome relief for the younger millennials to find breathing space from their busy schedules.
What is a micro-retirement?
Micro-retirement, alternatively known as mini-retirement, signifies a brief sabbatical one takes from their career. It’s more like a sabbatical but with a flexible duration and a particular purpose. Micro-retirement is a tool to reset, repeat, refocus, and achieve fulfillment.
The concept of micro-retirement is flexible and can mean different things to different people, according to Jes Osrow, cofounder of The Rise Journey. Some see it as an opportunity to combat burnout and rejuvenate while pursuing hobbies and interests outside of work. Others see it as a chance to start a new side business or commercial endeavor, reported Business Insider.
Tips to micro-retire successfully
According to career counselor Michael Lopez, the key to determining if someone is ready for micro-retirement is to assess whether their financial situation can sustain them throughout the retirement period.
Make sure you are financially secure for a long term:
Tim Toterhi, a career consultant, advises people whose companies don’t offer sabbatical choices to make a long-term financial plan to make sure they stay stable and financially comfortable.
“When I evaluate a client’s readiness for micro-retirement, I look for at least 12 months of living expenses saved separately from their emergency fund,” Abid Salahi, finance expert and co-founder of FinlyWealth, told Nasdaq.
Your skills matter:
Career coach Salahi stresses the value of keeping up-to-date skills to facilitate a seamless transition back to work following a micro-retirement. He suggests spending 5–10 hours a month on professional skill updates, which can cut down on job-seeking time by 47%.
Your healthcare planning is on point:
“In my practice, clients who successfully navigate micro-retirement have mapped out their health insurance strategy,” said Salahi. It’s suggested to set aside $15,000 to $20,000 specifically for healthcare expenses in case you take a one-year break from work.
Some additional pointers to remember:
Financial Preparation: Before taking a vacation, cut monthly spending by 25–35%.
Staying Connected: To locate new jobs 58% faster, keep up with professional networks during the break.
Astute Investing: During the micro-retirement phase, allocate 15–25% of your investments to conservative options.
