Savvy Women Earning

How to take time off and not be stressed out financially

It’s hot out here in Seattle! I don’t feel like working, but I’m making myself do some writing and prep for my clients this week. I’m really looking forward to taking off the second half of August.

Wait! Did I just say I’m taking TWO WEEKS off next month? How is that possible? How will I survive financially? I’m self-employed, for crying out loud. The bills still need to be paid in my business, and I still need to take my same paycheck. And as a single mother, I don’t have other income sources to support me when I take time off. So what is my secret?

Let me tell you about a conversation I had years ago with my friend and colleague Joan Casey—an awesome psychotherapist who teaches you how to find and hold onto your boundaries. One day after we had become friends she started talking about going off to India for the entire month of August. She was really looking forward to her trip. I had gotten to know her well enough to realize she was fully self-employed and lived on what she earned. I asked her if this was the trip of a lifetime. “No, not really. I take every August off—the whole month”.

I looked at her dumbfounded. “How?!”

“Oh, I just have my August fund.” She replied. She explained to me that she simply had a dedicated savings account that she called her “August fund” and she transferred money into it regulary. This was how she funded her time off.

It seems so simple. Why had I not seen it? So I decided to set up my own “August fund”. I set up a dedicated savings account linked to my business checking account. I calculated the amount I would need to fund my business in August, including the amount I would pay myself. Then I cut it in half and decided to try to take half of August off. I took this amount and divided it by eleven. (Eleven months not including August.) I went into my business budget and created a new line item expense called “August Fund” and put down the monthly savings amount. In September, I started funding it.

The following August, I took off almost two weeks. It was beautiful. That was six years ago.

For me, it makes sense for several other reasons. August was always a difficult business month. Many of my clients were on their own vacations, and I noticed that my cancellations were higher than normal. My income was always down anyways, and I was frustrated on top of it. I was trying to work while everyone else seemed like they were playing.

Now that I take off half the month, I stack my clients into the first half of August. It’s a busy time for me. The first week of September is heavier than normal too. I’m happy for both of these. Everyone knows I’m out the last two weeks of August, so we all plan according.

Beautiful, isn’t it? I wish I could say I’m going somewhere this August. But since I just bought a house, I think I’ll stay put and unpack. Maybe I’ll even decorate. I’ll watch a lot of movies and take my son to the beach. Maybe every day.

September is coming. Can you set up a dedicated savings account and transfer some money into it in September? Even a small amount will feel great. You can do it! You deserve it.

Related posts:

• Ode to Five Percent—Coping with Client Cancellations
• Here is a method that helps self-employed people avoid financial stress: The Five Percent Fund.
• Stressed about the economy? Five things to do to help yourself and your business
• Escape the Money Fog and Earn More (article from Mikelann’s newsletter)
• Time to make a plan for 2009 income—and open up to prosperity