Can We Still Afford to Take Career Breaks for Passion Projects?

Taking a career break to pursue a passion project is a dream for many. But with financial pressures mounting, is it still a feasible option? 

The Allure of the Passion Project

We all have that burning desire to pursue something we're truly passionate about. Whether it's writing a novel, starting a podcast, or learning a new skill, passion projects offer a chance to explore our creativity and personal growth. But the question remains: can we afford to put our careers on hold, even temporarily?

The Financial Reality Check

Let's be honest, career breaks come with a financial cost. Lost income is the most obvious hurdle. However, the transcript reveals several individuals who approached this challenge differently:

• The "Grant" Approach: One individual saved a substantial amount, viewing it as a self-funded grant for their passion project. This allowed them to dedicate time without immediate financial worry.
• The Phased Approach: Another individual transitioned gradually, initially balancing their passion project alongside their corporate job before eventually transitioning fully. This reduced the risk of sudden income loss.
• The Risk Assessment: The conversation highlights the importance of assessing the risks involved. Consider the worst-case scenario (e.g., the project failing) and have a plan B in place.

De-risking Your Passion Project Pursuit

Several strategies emerged from the discussion to mitigate financial risks:

• Detailed Financial Planning: Create a realistic budget, projecting income and expenses for the duration of the break. This helps to identify potential shortfalls and develop contingency plans.
• Part-Time Options: Explore the possibility of pursuing your passion project part-time, supplementing your income while gradually building your new venture.
• Building a Safety Net: Before taking the plunge, build a financial safety net. This could include emergency savings, investments, or other sources of income.
• Leveraging Skills: Consider how your existing skills can be used to generate income during your break. Freelancing, consulting, or online teaching are all possibilities.

The Timing Factor: Age and Responsibilities

The age at which you take a career break significantly impacts the feasibility. The discussion highlights:

• Younger Individuals: Those in their late 20s, without significant financial responsibilities (e.g., mortgages, children), have more flexibility.
• Mid-Career Professionals: Mid-career professionals with families and mortgages face greater financial constraints. A phased approach or careful financial planning becomes crucial.

Beyond the Finances: The Personal Equation

While financial planning is essential, the personal aspect is equally important. Ask yourself:

• What's your intention? Is it to build a sustainable business, or is it a temporary exploration?
• What are you willing to sacrifice? Be realistic about the lifestyle changes required.
• What's your definition of success? Success isn't always measured in financial terms. Personal growth and fulfillment are equally valuable.

Conclusion: Making the Break Work

Taking a career break for a passion project is possible, but it requires careful planning and a realistic assessment of your financial situation. By employing the strategies discussed, you can significantly reduce the risks and increase your chances of success, both professionally and personally. Remember to prioritise your well-being and define success on your own terms.

You can check their full interview on Wise and Shine, Episode 97 on Spotify, YouTube, Apple podcast for insights into one of Singapore’s most talked-about retirement schemes.