I Quit My Job To Travel in My 30s — 4 Money Mistakes To Beware of Before Doing the Same
If you’re looking to recover from burnout or enjoy new experiences, taking a sabbatical can be appealing. Helen Zhao, a former CNBC video producer, decided at age 32 to leave her role and use her $34,000 in savings to spend time in 18 countries. When sharing her story on CNBC Make It, she explained that she enjoyed her adventures but did have some financial regrets. Here are her four money mistakes that you can avoid making.
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1. Don’t Be Too Inflexible
When recounting her South American travels, Zhao mentioned missing out on celebrating Argentina’s World Cup victory in Buenos Aires because she’d already bought a cheap flight to her next destination — Rio De Janeiro, in Brazil. The regret kicked in once she saw friends enjoying the festivities. She wrote, “I was so obsessed with planning ahead to feel in control that I missed out on major life experiences.”
Although planning can save you money during your travels, avoid regrets by keeping your plans flexible. Otherwise, you might miss out on making great memories simply out of fear of not getting a good deal unless you rush.
2. Don’t Lose Sight of Your Financial Goals
Zhao’s sabbatical left her with little money to buy a house or pursue other important financial goals. She explained, “While I don’t regret my sabbatical or even how much I spent on it, I do regret that a lack of preparation in my young adulthood landed me in the position of having to choose between personal fulfillment and financial security.”
Educating yourself about personal finances and making a financial plan long before your sabbatical can help you avoid this mistake. This includes saving as much as possible, budgeting during your travels, developing your career and considering important financial milestones. You don’t want your break to sacrifice your financial future.
3. Don’t Stop Investing
Although Zhao had a brokerage account and a Roth IRA, she became too scared to continue investing after losses in 2022. She ultimately regretted the missed returns she could have enjoyed. She wrote, “I wish I’d continued investing throughout my travels, putting $200 each month into a large-cap index fund.”
Don’t let market swings scare you out of investing and reaching your wealth goals. Even during your sabbatical, keep contributing regularly, even if it requires cutting some costs. If the risk scares you, seek a financial advisor who can help with diversifying and choosing investments.
4. Avoid Being Careless With Your Belongings
Zhao described needing to splurge $800 after someone pickpocketed her phone in Cambodia. She also mentioned experiencing other costly losses due to not being careful enough with her belongings during her travels.
Understanding common risks where you’re going and securing your belongings can help prevent thefts that both harm you financially and cause inconvenience. Keep your valuables locked or zipped up and out of reach of potential thieves. If you do lose something, a travel, renters or homeowners insurance policy could help you get reimbursed.
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This article originally appeared on GOBankingRates.com: I Quit My Job To Travel in My 30s — 4 Money Mistakes To Beware of Before Doing the Same