Be smart about planning your sabbatical. Use resources strategically, and feel financially confident about taking time off. These eight unexpected strategies will help you unlock hidden resources, use your money more intentionally, and explore ways to fund your sabbatical without sacrificing your long-term goals. From optimizing credit card points to renting your home or timing your break strategically, you’ll learn how to make your sabbatical a financially smart decision.
With more professionals in the U.S. considering career breaks in 2025 (but only about 7% of employers offering paid sabbaticals in 2023), planning how to fund a sabbatical is just as important as planning what you’ll do during it.
The good news is that there are plenty of smart, strategic ways to make your sabbatical financially sustainable that you may not have considered yet… all without derailing your long-term goals.
As financial planners who’ve taken sabbaticals ourselves, we’ve seen how powerful this kind of break can be. Whether it’s pursuing a dream, resting after years of constant busyness, or creating space to rediscover yourself outside of your regular day-to-day job, a sabbatical truly is an opportunity to reset, reflect, and reconnect with what matters most.
But yet, one of the most common barriers to taking a sabbatical isn’t money, but rather giving yourself the permission to step off the hamster wheel.
We all seem to do what’s expected of us: keep climbing, keep saving, keep contributing to retirement. But what if pressing pause actually helped you come back healthier, with a clearer purpose, and even more financially grounded?
Many of our clients return from their sabbatical in a stronger financial position - having taken the time to understand where their money was going, get really clear on priorities, and align their financial plan with their real life goals. The experience often sparks deeper, more intentional financial habits that last well beyond their time away.
Below are eight unexpected (and smart) ways to fund your sabbatical – strategies you can apply both before and during your break. These steps can help you unlock how to use the savings you already have and move past the mental blocks that make a sabbatical feel “irresponsible.”
You’ve worked hard to save and build your financial foundation. It’s normal to feel hesitant about spending it. These ideas will help you approach your sabbatical with confidence, knowing you’re making your money work for you.
Table of Contents
1. Get Honest About Your Current Spending Habits
Finding creative ways to fund your sabbatical starts with unlocking the money you already have but is currently being spent on things that you may no longer need. Once you become aware of where your money is going, you can redirect those dollars toward your sabbatical. Awareness & intentionality creates opportunity.
The first thing we do with our clients is to take a close and honest look at where their money is going right now.
This is something we encourage you to start doing as soon as possible to build awareness about your money habits, whether you take a sabbatical or not!
1️⃣ Start by listing all your expenses and sorting them into two simple categories:
- Necessary expenses: the essentials like rent, groceries, and electricity.
- Discretionary expenses: the “nice-to-haves” like gym memberships, streaming services, and entertainment.
This first step may seem obvious, but ask yourself: When was the last time you actually really looked at your autopay credit card expenses? Getting honest about your spending habits is key!
Once you have that overview, focus on a few key areas where hidden opportunities often appear:
- Big-ticket decisions: What’s one change that could make a meaningful difference? Swapping a $150/month gym membership for a cheaper option could free up $1,800 in a year, a nice start to your sabbatical fund.
👉 Action step: Identify one big-ticket decision you could make to put towards your sabbatical fund.
- Future savings shifts: Some expenses are temporary. If daycare or tuition costs are ending soon, redirect that freed-up cash flow instead of letting it disappear into new spending (more on this in point #7).
👉 Action step: List any expenses that are expected to stop in the future
- Insurance: Revisit your coverage. A quick chat with your agent, especially after a home update, can sometimes lower premiums and save hundreds a year.
👉 Action step: Schedule an appointment with your insurance broker
- Savings: Review your different savings accounts to understand how much you’re saving and what you’re saving for. Are your funds allocated in the right places? Are you using the right types of accounts for your goals?
You might even discover unexpected opportunities by talking with family members about shared expenses. For instance, if grandparents are already contributing to college savings, you might not need to set aside as much as you thought.
👉 Action step: Have open conversations with family members and your financial advisor about your savings strategy and account setup.
- Subscriptions and memberships: Are you still using them all? Many of us keep subscriptions “for later.” If you’ve got more Audible credits than you’ll ever use, pause the subscription and simply buy books when you want them.
👉 Action step: Review and downgrade or cancel autopays based on your actual needs
Once you’ve done your review, open a separate savings account for your sabbatical. Give it a name, automate small deposits, and watch your progress grow.
One thing we like to ask our clients is: “What’s the one decision you can make that will make the biggest difference, make things easier, or will simplify?”
2. Strategically Accumulate Credit Card Points
Use financial systems like credit card points in your favor. This tip doesn’t ask you to cut anything out but instead to spend in a smarter way so your money can go further!
If you’re planning a sabbatical that involves travel, your credit card can become one of your best financial tools… if you use it strategically. The goal is to make your everyday spending work for you by earning rewards that can help fund your future adventures. Nothing like a free plane ticket or hotel rooms to bring peace of mind!
But be strategic, not all points are created equal. Some cards give better rewards for flights, others for hotels or everyday purchases like groceries and gas. Think about how you’ll spend during your sabbatical, and choose cards that match your lifestyle and goals.
A few tips to get started:
- Be intentional: If you’re dreaming of travel, look for cards that offer transferable travel points or strong airline/hotel partnerships.
- Know your benefits: Many cards include perks like travel insurance, rental car coverage, or airport lounge access, which can save real money when you’re on the road.
- Weigh the annual fees: Sometimes, a higher annual fee is worth it if the rewards and benefits outweigh the cost.
- Use your points smartly: Redeeming points for cash back or gift cards can be convenient, but using them for travel (especially flights and hotels) often gets you the most value.
- Consider expert help: If optimizing points feels overwhelming, consider talking to a credit card or travel rewards specialist who can help you pick the right cards, build a points strategy, and maximize your rewards before your sabbatical begins.
The key is to be strategic: earn your points and redeem with intention. When done well, your everyday purchases can help pay for a meaningful part of your time off.
Credit card points were one of the key strategies we used to help fund our 2.5-year sabbatical. They gave us the freedom and confidence to travel through Southeast Asia - it truly felt like free money! But that freedom came from four years of intentionally using the right cards and optimizing day-to-day spending. Over time, we also learned that redeeming points for hotel stays (instead of flights) stretched our travel budget much further.
3. Rent your home while you’re away or find low-cost housing abroad
Turn your existing asset into a financial advantage and help reduce the cost of one of the most expensive parts of the trip!
Your home can do more than sit empty while you’re away by helping you fund your sabbatical.
If you own your home, consider renting it out while you travel. Whether it’s a few weeks or several months, listing your space on platforms like Airbnb can bring in meaningful extra income. Some weeks (like holidays or local event weekends) can be especially lucrative.
Just remember to plan for any upfront costs, like cleaning, small upgrades, or hiring a local host to welcome guests.
Even if you don’t own property, reimagining where and how you stay can make a huge difference in the overall cost of your sabbatical.
- House swaps: Exchange homes with someone abroad who’s also looking for a change of scenery. Sites like HomeExchange make it simple.
- TrustedHousesitters: Stay in someone’s home (and care for their pets) while they’re away. It’s a win-win that drastically cuts accommodation costs.
- Global Family Home Rentals (GFHR): A network designed for travelers and professionals who want affordable, flexible housing during long-term stays.
Run the numbers and see what’s possible, you might find that your home (or someone else’s) plays a big role in funding your adventure.
4. Create a sabbatical ‘wishlist’
Reconsider how holidays or birthdays can help support your vision
Why not make your next birthday or holiday gift something that gets you closer to your sabbatical dream? Most people love giving meaningful gifts, but they often run out of ideas…
This is your chance to help them do just that.
Start by making a sabbatical wishlist that includes what you’ll truly need for your time away. Go beyond the usual travel gear like backpacks and hiking shoes.
Think bigger:
- Hotel nights or Airbnb stays
- Airline miles or travel points (some friends and family have miles they’d happily share!)
- Use of a second home, cabin, or timeshare
- Borrowing a vehicle or travel equipment
- Practical items that will make your adventure more comfortable or memorable
Here are some ideas of gifts you could add to your wishlist.
The key is to start the conversation. Let people in your life know what you’re working toward and how they can support you in ways that are truly helpful. When friends and family understand the purpose behind your sabbatical, they’ll often be excited to play a small part in making it happen.
It’s a simple shift: instead of collecting more “stuff,” you’re gathering experiences, opportunities, and resources that bring your sabbatical one step closer to reality.
5. Monetize your skills when traveling
One way to not tap too much into your savings is by finding other ways to make money while being abroad.
If you’d rather not rely solely on savings during your sabbatical, consider earning a little income along the way. It doesn’t have to look like your regular job – in fact, this can be a great opportunity to explore something completely different.
Think about the skills you already have and how they could translate abroad:
- Teaching English or tutoring kids or adults – 💡 Kailie became a certified English teacher through the TESOL program, which allowed her to get a job pretty much anywhere in the world!
- Photography: capturing travel experiences or offering portraits to fellow travelers
- Freelance writing, copywriting, or design: remote projects that let you work from anywhere
- Hospitality or service work, like bartending or working at a local café.
- Pet sitting or house sitting
- Cooking or baking: hosting a small dinner, baking for locals, or taking part in a community food project
Even a small income can make a big difference when you’re living somewhere with a lower cost of living. And more importantly, these opportunities can add depth and connection to your sabbatical experience, helping you meet people, learn new skills, and see your time away from a whole new perspective.
Some people utilize work-remote programs like Remote Year or Workaway to take trips across the globe.
I worked as a hotel receptionist at a bed and breakfast in Oaxaca. There, it gave me a sense of family since it was family-owned, and the hotel guests were super grateful to be able to communicate with someone who was a native English speaker, especially on the phone or when there was a medical emergency.
6. Explore Grants, Fellowships, and Other Paid Opportunities and Programs
With a little bit of preparation and digging, you might find ways to get paid to take that break.
Depending on your field and the purpose of your sabbatical, there may be funds, grants, or scholarships designed to support exactly what you’re planning. And if you’re currently employed, it’s worth exploring whether your company might be willing to “invest” in your time away.
Start by looking internally:
- Some employers offer paid or partially paid sabbaticals, or allow for extended unpaid leave without jeopardizing your position.
- Others provide benefits like unused vacation payouts, stock grants, or bonuses that could help create a natural financial cushion.
If you’re not sure what’s possible, ask! See if others in your company have taken sabbaticals and how they approached it, you might be surprised by what’s available when you make a case for how this experience contributes to your long-term professional growth.
Check out this post for tips on how to talk to your manager about taking a sabbatical.
Beyond your employer, there are many organizations and programs that fund purposeful breaks. These opportunities often support professionals who want to contribute to social good, research, leadership development, or creative projects, aligning perfectly with a values-driven sabbatical.
Here are a few examples to explore:
- Peace Corps – A structured, service-based way to live abroad while contributing to global communities (and in some cases, student loan benefits or stipends may apply).
- Fulbright Program – For professionals, researchers, and educators seeking to engage internationally in meaningful exchange.
- Rotary Global Scholarships – Support graduate-level study, humanitarian work, or professional development abroad.
- Obama Foundation Scholars Program – For civic leaders working toward social impact, hosted in Chicago or New York.
- Eisenhower Fellowships Global Program – A six-week leadership experience for mid-career professionals from around the world.
- MacDowell, Bellagio, or Radcliffe Fellowships – For creatives, researchers, and thought leaders who want to pursue a project in an inspiring environment.
- Rasmuson or O2 Sabbatical Programs – For nonprofit and community leaders seeking time to rest and reset.
(Note: deadlines vary year to year – check current application cycles for the most up-to-date opportunities and for criteria – this might inform you on what you need to do, even if you’re looking to take a break in a few years.)
These options show that you don’t have to fund your sabbatical alone. Sometimes, aligning your goals with a larger mission or organization can open doors to financial support, structure, and community that make your time away even more meaningful.
It also shows that sabbaticals can look very different from one person to another. What matters most isn’t having nothing to do for six months or more – it’s having the space to step away from your day-to-day routine and explore something new. Whether that means traveling, volunteering, studying, or simply slowing down, these opportunities give you room to reset, reflect, and return renewed.
7. Be strategic about timing your sabbatical
When you take your sabbatical can be just as important as how you fund it. Timing it right can make the experience feel seamless – financially and personally.
Look ahead at your life and financial calendar. Is there a natural upcoming transition that you can piggyback on, like a big expense that is about to drop off (like daycare, tuition, or a car payment that’s nearly finished)? You’re already used to that money leaving your account each month, so when those costs end, consider redirecting that same amount into a “sabbatical fund.” Or, plan your break to begin right after those costs disappear – that way, it doesn’t create as big a financial gap.
You can also look at delaying big purchases or projects, maybe that home renovation or new car can wait a year. Ask yourself, what’s really the most important investment right now? Chances are, it’s your well-being, perspective, and quality time with your family – not a new kitchen.
Being intentional about timing helps your sabbatical fit naturally into your financial rhythm, turning it into a well-planned chapter of your life rather than a disruptive detour.
Read more about how to strategically set your sabbatical start date
8. Apply Smart Financial Planning Strategies
Smart financial planning is what turns your sabbatical dream into a confident, stress-free reality. It’s not just about saving but about making your money work for you before, during, and after your time away.
A well-thought-out financial plan ensures your sabbatical doesn’t derail your long-term goals. Instead, it can strengthen them. With the right strategy, many of our clients come back from their break with healthier finances – feeling clear about where their money goes, what truly matters, and how to align future spending with their values.
Here are a couple strategies to explore with your financial planner:
- Get tax smart.
A sabbatical year can bring changes to your income for a certain period of time, and with it, unique tax opportunities. You may qualify for 0% long-term capital gains rates, which could make it a perfect time to sell appreciated investments without the usual tax hit. Many people don’t do some of the things they dream of doing because of the taxes they have to pay. We help you rethink about this so you can tap in your money for what is important to you! - Use your HSA strategically.
If you have a Health Savings Account (HSA), it can serve as a valuable financial cushion during your sabbatical. Because it’s triple tax-advantaged (contributions are pre-tax, growth is tax-free, and withdrawals for medical expenses are tax-free), it can be one of the most efficient ways to fund eligible costs during your time off.
The Family Sabbatical – Learn how Katie & James plus their 2 kids took a 6-month sabbatical
Having a financial planner by your side is an asset to help you rethink your money for the short and long term.
As financial planners, we have the ability to be creative to help make your money work for your given your unique situation!
When you start to understand where your money is going and how to orchestrate it toward the experiences you value most, you’ll feel a powerful shift → from “Can I really afford this?” to “I’m intentionally creating the life I want.”
💡 When choosing a financial planner, make sure they understand the value of sabbaticals and career breaks! When you plan a sabbatical, you step away from the traditional lifestyle – which means traditional financial planning may not apply to you!
We’d love to help you make your sabbatical dream your reality. Get in touch to explore how a personalized financial plan can support your time away and beyond.
Key takeaways
- You probably already have more sabbatical funding than you think. Hidden opportunities often lie in your existing spending, subscriptions, or savings habits.
- Credit card points and travel rewards can cover major expenses like flights and hotels when used strategically.
- Your home can fund your sabbatical too. Renting or house swapping helps offset one of your biggest costs: housing.
- Gifts and wishlists can align with your sabbatical goals. Turn birthdays and holidays into meaningful support for your plans.
- Earn abroad or on the go. From teaching English to freelancing, even small income streams add up and enrich your experience.
- Grants, fellowships, and employer programs exist! With the right research, you might get partial or full financial support.
- Timing is everything. Align your sabbatical with life changes, like when childcare or tuition costs drop, to minimize financial gaps.
- Smart financial planning ties it all together. A sabbatical doesn’t have to derail your finances; it can actually strengthen them with the right plan and the right financial planners can help you figure it out and bring peace of mind and confidence to your journey.
FAQ
Can I still contribute to my investments or savings during my sabbatical?
Should I use my retirement savings to fund my sabbatical?
Are there grants or scholarships available for sabbaticals?
How can I talk to my company about taking a sabbatical?
Is it financially irresponsible to take a sabbatical?
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KAILIE ABASCAL
Kailie is a Certified Financial Planner (CFP®) with a passion for helping clients navigate their financial strategies with creativity and confidence. Having lived in Cuba and Mexico, she brings a global perspective to her work, combining her diverse experiences with a deep understanding of financial goals. Kailie is dedicated to helping clients plan for sabbaticals and career breaks, ensuring these life changes are enriching without compromising long-term financial security.