The Benefits and Drawbacks of Taking a Sabbatical

Sabbatical Benefits

• In the short term, a sabbatical provides time and space to:
  • recover from burnout
  • explore your interests
  • learn new skills
  • build new habits
  • spend time with friends and family
  • frontload or practice retirement
• In the long term, a sabbatical provides time and space to reflect on what is important to you and pursue work that aligns with those values. It can help you design a more sustainable and fulfilling life.
• A sabbatical is available much sooner than early retirement; you only need cash to cover expenses for a limited time instead of indefinitely.
• Sabbaticals are better suited to time-sensitive goals like recovering from burnout, traveling, or raising a family that you'd like to do at a particular time in your life.

Sabbatical Drawbacks

• A sabbatical requires a high savings rate, frugality, and relatively large cash reserves to cover expenses while you're not working.
• There is an opportunity cost of income and compounding investment gains from that income.
• Stepping back from work means losing some of the non-financial benefits of that work, which can include a loss of meaning, power, and social connections from your job.
• There is potential to lose career momentum, including expertise and professional network.
• If you're not financially independent, there will be some pressure from having a defined runway and knowing that you will need to return to work eventually.