How To Take an Adult Gap Year Without Breaking the Bank

A new trend among young adults who are recent college graduates or who want to take a break early on in their careers is emerging. This trend, known as an “adult gap year,” has become increasingly popular among young people — particularly Gen Zers — who decide to take extended breaks from their studies or careers to pursue travel, try out passion projects or simply reset.

While gap years among older age groups — often called “golden gap years” for seniors — are common, the concept has been growing steadily among Gen Zers.

There are various ways of pursuing a gap year, alternatively referred to as mini-sabbaticals or mini-retirements. Some people stop working completely, while others might switch to a remote work schedule or pursue freelance work instead of holding a full-time job.

However, Gen Zers are often college students or recent graduates, and might not be in a secure enough financial standing to take a break from work or pursue extensive travel. Fortunately, there are several things they can do to ensure they don’t hurt their finances while pursuing a gap year.

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Here are several ways young people can pursue a gap year without straining their budgets .

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Start Budgeting For a Gap Year Well in Advance

A good way to save for a gap year is to contribute toward your gap year every month as an expense. By including a gap year fund in your monthly budget, you can ensure that you save enough money way before going on leave. Budgeting for a gap year might mean cutting back on other monthly expenses.

“Evaluating your spending habits can significantly boost your savings,” said Barbara Quan, manager of financial education at Golden 1 Credit Union . “Small changes like dining out less often can really add up over time.”

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Figure Out How You Will Pay For Your Expenses

Utilizing credit card rewards or cards with cash-back benefits can help with some expenses during your gap year.

“However, ensure that you don’t accumulate debt that cannot be promptly repaid, especially if you do not have a steady income source after your time off,” Quan said.

You should also be mindful of what credit or debit cards you use if you will be traveling internationally.

“Remember to check with your financial institution regarding transaction fees when withdrawing funds or making purchases abroad,” Quan said.

Apply For Jobs Before You Return

If you plan to take off work completely, it’s best to start applying for jobs way before you plan on coming back from your gap year. Landing a job might take a long time, so it would be beneficial to have a job lined up before you return.

That way, once your trip is over, you won’t have to go additional weeks to months without a source of income.

Find Ways To Earn Income

Alternatively, many people who pursue a gap year continue to work while on leave so that they can maintain a steady income. Fortunately, online platforms like Upwork and Fiverr provide a wide variety of remote and freelance job listings.

“You don’t have to avoid work completely even if you’ve committed to an adult gap year,” said Dean Van Es, founder and CEO of Fast Cover Travel Insurance . “There’s an almost endless variety of remote work and volunteer opportunities to explore should you feel the need to make a little money or develop your skills during your time away.”

Practice Frugality and Flexibility

To avoid financial stress, one should remain as frugal as possible both before and during their adult gap year.

“Taking an adult gap year is a great way to avoid or overcome burnout,” Van Es said. “But if you have a limited budget to spend on your adventure, remaining flexible with your plans is a great way to reduce your expenses. For example, traveling to destinations during the shoulder season rather than peak tourist periods means you’ll usually find cheaper accommodations and activities.”

Similarly, booking flights in the middle of the week or during the off-season can help you get cheaper airfares. However, this might require you to take a different route or airport than what you originally planned.

Obtain Travel Insurance

While one might not think travel insurance is a necessity, there are many things it covers when you travel. Should you get sick or injured during your gap year if you choose to travel outside of the country, travel insurance can cover any medical bills that your health insurance might not cover.

While travel insurance might be an additional expense, it isn’t as great of one as overseas medical bills.

Know Your Options at Work

When taking a gap year, your workplace is most likely not the first thing on your mind. However, it’s important to talk with your workplace about your extended leave, especially since an increasing number of workplaces are encouraging their employees to take extended breaks.

“As people become more aware of the harms of burnout, sabbaticals are one of the fastest-growing workplace trends,” Van Es said. “This is a great option for workers who can’t just quit their jobs. Instead, some workplaces might provide access to paid sabbatical leave, ranging from a few weeks to several months. Some businesses also offer unpaid leave, where you can enjoy a much-needed rest knowing your position is safe until your return date.”

This article originally appeared on GOBankingRates.com : How To Take an Adult Gap Year Without Breaking the Bank