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.

6 thoughts on “How to take time off and not be stressed out financially

  1. Terrific points Mikelann. It’s the way we as the self-employed can have that paid vacation!

  2. This is exactly what I need to stumble across right now! Talk about the universe delivering, especially when I started reading your blog post that you are in Seattle (I’ve lived in Seattle since 2000, although we recently moved our offices down to Phoenix).

    And then the part about India–I just went to India for 3 weeks in June/July. What synchronicity!

    I have taken good chunks of time off earlier this yr, but now I feel like I am catching up on a lot…and working way too much, even though I have a team to support me. But I just had a few things happen recently that are hitting me on the head with slowing down again. Yesterday, I fell flat on my face when I slipped while wearing socks on shiny hardwood floors & carrying two big things in my hands. I feel achy all over today, like I’m 90. That plus reading your blog post is inspiring me to slow down, so thank you!

  3. Ooh, what a great idea! I’m not yet self-employed (although I hope to be someday) but I’m going to save this article and do this when I am.

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