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One more thing. Remember that the cost of doing this is not just your cost of living for the duration. You also lose all of the salary+benefits that you would h

One more thing. Remember that the cost of doing this is not just your cost of living for the duration. You also lose all of the salary+benefits that you would have made. Loss of continued earnings can have a big impact on retirement investment accounts long term. Prepare yourself psychologically for that reality with a quick lifetime opportunity cost calculation now.

daveguy 10y ago
A quick "lifetime" opportunity cost is a bit misleading. A quick 1-2 year opportunity cost (but realize part of that difference is being able to invest that 1-2 years of savings). You will want to re-evaluate in a year anyway to see if you are accomplishing what you set out to accomplish. If not, you can get back into the workforce with a good story to tell. Edit: Just realized you only have a few $k Do not do this on only a few $k. You need enough to live on while you try. Also the opportunity cost includes using your savings so what that would have been invested really is a lifetime opportunity cost. If you are going to do it with just a few $k at least get rid of as many subscriptions as you can (gym, or better running shoes, and low bandwidth internet are probably needed, but netflix, hulu, cable are not). Then calculate how many months you can live on savings. If you don't already keep good books it will probably take a few months to figure this out.
sanderjd 10y ago
A few years ago, I left a really good job where I worked with people I really loved, because I had gotten too tied up in it too early in life and burnt myself out with work and worry. I took about 3 months completely off and spent another month or two looking for good new companies where I felt I could have a positive impact on society. I found a good one, but unsurprisingly (in hindsight), companies like that are difficult and not the most financially rewarding. All told, I estimate the lifetime opportunity cost of that period of my life was a bit more than $100k. With that money, I could have been fully debt free, or have had a really good downpayment for a house, or my wife could have gone to grad school, or I could have saved a few percent of my total retirement, etc. etc. I don't regret the decision, but I frequently wonder whether taking the easier path financially would have left me happier today than the path I chose. I usually conclude: no. This is all to say: think about this lifetime opportunity cost question, but don't only think about it.
LifeQuestioner 10y ago
With that line of thinking "how much can I loose" You're never gonna just do something for the sake of fun/enjoying it/making memories/experiencing failure. Always play safe...? Might work for some - but this terrifies me!

daveguy 10y ago

A quick "lifetime" opportunity cost is a bit misleading. A quick 1-2 year opportunity cost (but realize part of that difference is being able to invest that 1-2 years of savings). You will want to re-evaluate in a year anyway to see if you are accomplishing what you set out to accomplish. If not, you can get back into the workforce with a good story to tell. Edit: Just realized you only have a few $k Do not do this on only a few $k. You need enough to live on while you try. Also the opportunity cost includes using your savings so what that would have been invested really is a lifetime opportunity cost. If you are going to do it with just a few $k at least get rid of as many subscriptions as you can (gym, or better running shoes, and low bandwidth internet are probably needed, but netflix, hulu, cable are not). Then calculate how many months you can live on savings. If you don't already keep good books it will probably take a few months to figure this out.

sanderjd 10y ago

A few years ago, I left a really good job where I worked with people I really loved, because I had gotten too tied up in it too early in life and burnt myself out with work and worry. I took about 3 months completely off and spent another month or two looking for good new companies where I felt I could have a positive impact on society. I found a good one, but unsurprisingly (in hindsight), companies like that are difficult and not the most financially rewarding. All told, I estimate the lifetime opportunity cost of that period of my life was a bit more than $100k. With that money, I could have been fully debt free, or have had a really good downpayment for a house, or my wife could have gone to grad school, or I could have saved a few percent of my total retirement, etc. etc. I don't regret the decision, but I frequently wonder whether taking the easier path financially would have left me happier today than the path I chose. I usually conclude: no. This is all to say: think about this lifetime opportunity cost question, but don't only think about it.

LifeQuestioner 10y ago

With that line of thinking "how much can I loose" You're never gonna just do something for the sake of fun/enjoying it/making memories/experiencing failure. Always play safe...? Might work for some - but this terrifies me!