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Budgeting for a break
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I've had a few things work out well for me this year, so I'm going to take a career break in 2022 (hopefully post-virus!) and spend a year or so adventuring. I was hoping the sub could trouble-shoot my financial prep and provide any guidance.

Background:

  • 34m work in IT
  • Selling house to move into rental
  • Being made redundant in November
  • Savings (post house sale) ~£100K

Plans

  • Prior to November start saving more effectively
  • Trim down belongings via sale or tip to generate a handful of £'s
  • Start of 2022 put my belongings into storage and cancel the rental (if I can't blag space in someone's garage...)
  • Either sell my car or pass on to a partner temporarily to care for

Budget Plans (2022)

  • Keeping up personal pension payments (£10,600)
  • NI contributions (£780)
  • Regular ISA savings (£3,000)
  • Storage costs (£1,500)
  • Adventure costs including living expenses (£20,000)

This will net would my savings to around £65K coming back from my break, though obviously the pension and savings part (£13,600) will not be 'spent'. A few direct questions to y'all

  • This £65K - what's the best place for it? I don't have much experience with this amount of cash so a safe place for it would be useful. Once I get back it will be a cushion to land on and in the long term part of a deposit if I decide to home own again
  • Is it smart to keep up my personal pension payments?

Cheers!

NB: I can't rent my house out and need to sell for personal reasons.
NBNB: If it looks like 2022 will not be a good year to take the break I should have a nice long time to see it coming, as I don't leave my job until Nov.

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Posted
3 years ago