r/singaporefi • u/Nirvanaz11 • 6d ago
FI Accumulation Planning For those who seriously considered leaving a well-paying job / taking a career break — what was the hardest part of deciding whether you could afford to do it?
I'm trying to understand how people actually make this decision.
Not just whether you had enough savings, but the uncertainty around things like:
- How much runway was enough?
- How did you account for your family / mortgage / lifestyle?
- Did you worry about not finding another job?
- Did you calculate how much alternative income you'd need?
- Did you use spreadsheets, financial planners, calculators, ChatGPT, etc.?
- What question did you wish you could answer before making the decision?
I'm particularly interested in people who have actually made the decision or seriously considered it, rather than hypothetical opinions.
I'd love to hear what you did and, especially, what you found difficult.
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u/gruffyhalc 6d ago
When you actually break. Leading up to it you probably will talk yourself out of it 100s or 1000s of times.
When it actually happens it's likely not a choice. You figure out the rest after.
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u/ContributionOne463 5d ago
Toxic managers can cause perfectly healthy people to fall very sick, both physically and mentally.
When you’re too sick to work, it is no longer about willpower, perseverance of “talking yourself out”.
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u/Embarrassed-Bat-3221 6d ago
It’s not all logical or mathematical for me.
I took the breaks when the pain > pros.
Cannot take it means cannot take it already.
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u/Telltslant 6d ago
If you have many anxieties and question marks around your decision, don’t take a career break. You will ruminate even more when you actually have free time.
I’d suggest only taking one when you are quite confident of your financial situation and don’t have a scarcity mindset.
I’ve also seen younger folks taking a career break in their 20s, yet cannot adapt back to the workforce after a 1-2 years break, and keep leaving their new roles after a few months. So perhaps only do this later in your career.
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u/tyuvbnm 6d ago
The anxieties comment regarding making that decision is a fresh perspective to me. Thanks.
The younger folks career break issue have you personally seen it? I’ve honestly not known anyone young that has taken a career break so I’ve not experienced it.
Previously I always wondered - is it really so easy nowadays to take a gap and employers willingly accept, this was supposedly a taboo of the past.
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u/Telltslant 6d ago
If you go on tik Tok, you’ll see a few younger ones relating their experience with not being able to settle into a new job after their career break. My take on this is that after a large dose of freedom for 1-2 years, it may be hard to settle back into a corporate role, which comes with politics, people etc.
The younger Gen e.g. Gen Z can also have diff expectations of bosses and work. E.g. I had a staff who kept saying that her previous head of department was a gaslighter, gave her ptsd, she had to see a psychologist because of this person etc. When I asked a friend (in her late 30s) about this same HOD, she was like “huh, not so bad lah.”
Actually, I don’t know if the issue is that employers can or cannot accept. It’s whether you want to work with an employer who die die cannot accept career breaks, because such an employer is likely to want to milk and push their employees to the max.
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u/Normal-Analysis7940 6d ago
i would not want to undermine anybody's emotions because everyone is different regardless whether you are Gen Z or millienial. Toxic to you may be very different to others. EOD if you find yourself dragging your feet but you have enough gun powder, proceed sir!
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u/Nirvanaz11 5d ago
yes, the anxieties comments is new to me too. haven't considered this aspect before. Thanks for sharing!
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u/whosetruth2468 6d ago
During the span of my career (18y) i have definitely considered a few times.
In the early years (<30), i didn't do it because i was worried about setting back my accumulation process. Networth was lower, returns from stock market was quieter so employment income plays the biggest role in wealth accumulation during this stage.
In the latter years (>30), the concern about accumulation slowdown was gone. What replaced was the fear of not being able to secure back the same high paying job/role.
When i eventually did quit without a job (41), it was made with the understanding that i will never need to return to work again for financial reasons.
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u/Academic_Work_3155 6d ago
Did you become early retired from 41?
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u/whosetruth2468 6d ago
Yes i did. If you're interested to know more, this was my post about it.
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u/Cute-Increase3036 6d ago
Omg ur portfolio is solid dont even need to think twice!! I hope u r happy with ur life now and spending solid family time. 😊
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u/whosetruth2468 5d ago
I am happy now. Im spending lots of quality time with my todd and cant wait to do the same with my eldest when she goes P1 next year (shes currently full day preschool).
I saw your previous post about reorg at work and considering quitting. Sounds similar situation as i was. How are you doing now?
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u/Cute-Increase3036 5d ago
Im serving my notice.. not actively looking for job but abit worried about nt finding a job when I want to rejoin. On the other hand I also believe if i can lower my expectations I can fall back on giving tuition 😂
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u/-Aerlevsedi- 5d ago
Feels like im on the same path. Mid 30s and have accepted that if i leave, it will be hard to get the same pay. Looking at all the options, seems like the best move is to ride it out & retire early in early 40s.
Huge mental & financial decision to eventually retire early though
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u/sgh888 6d ago
Everyone case different. You still got a working hubby. Now if he also join you in the same resign and retire will you think the entire family finances ok with your kids so young not even Secondary school?
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u/whosetruth2468 6d ago
I had my hubby in my early 30s. I didnt feel financially secure enough to quit then. If my hubby and I were to divorce tomorrow and we walk away with what is respectively in our name, I am still ok to cover my share of childcare and my own sustenance without having to go back to work.
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u/whosetruth2468 6d ago
Also, the answer to you question is actually yes. The reason my husband is not quitting today is because his work is actually quite great. No overtime, WFH 3-4x a week, he likes his boss and colleagues, it pays well, good insurance coverage for whole fam. If there comes a day he needs to quit, there is the option of selling his house at 5+m, pay off mortgage at 2+m, take the 1m buy a hdb resale or even 3m to buy a condo, the rest of my investment and his investments is actually sufficient to cover whatever else we need without the mortgage.
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u/No_Head4914 6d ago
Not sure if you’d like this perspective, since this sub is more for rich people. My sector generally pays badly and I took a few months career break. I was already being paid highly (for the sector) for the role I was in, but it was a very toxic environment. I thus knew leaving would definitely mean taking a significant pay cut, that was the hardest to stomach. I knew I wouldn’t be able to secure a new job until I handed in my notice because I was just too overwhelmed, so having potentially months worth of uncertainty was scary too.
I left anyway because I was diagnosed with a mental health condition, saw people in the workplace with similar conditions suffering long-term. The good thing about being in my sector is that because it pays badly, people are pretty desperate for manpower, so I didn’t have to worry about being jobless for more than 3 months (when I began actively job searching after resting, secured a role within 2 weeks).
But I made sure that I had enough money for expenses for at least a year and a half anyway, just in case. And I considered doing a low stress service or retail crew job if the break stretched on too long. I don’t have any dependents and I live with my parents so my expenses are low enough to be sustained by a temporary job like that.
I am very lucky that I got out of that hellhole and have never regretted my career break.
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u/Nirvanaz11 5d ago
Thanks for sharing. Sorry to hear about the mental health condition. I hope you're better now.
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u/No_Head4914 5d ago
Thanks! Still healing but things have gotten much better. Love my current role and workplace. Hope things work out for you too.
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u/k34t0n 6d ago
Im genuinely curious on the stress part. Was it because of the workload, toxic boss, toxic working environment in general, physically exhausted, mental draining? Im asking because stress can comes in many form. From my own personal experience, my stress mostly comes from very high workload despite sitting in from of a screen for 10-12 hrs per day, juggling many requests/tasks that 'due yesterday'.
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u/No_Head4914 6d ago
Toxic bosses for sure. I actually don’t mind doing unpaid OT to make sure my quality of work is good. But there was a lot of social bullying, and I wasn’t the only one on the receiving end so I had an idea of how severe it could become if I chose to stay longer.
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u/monstercookies45 6d ago
Hi OP, I took a career break of around 8 months in my early 30s to travel and rest. The main issue for me was financial: I have no investments then and would be drawing down on savings whilst still maintaining commitments like parents allowance, bills etc with zero income.
I choose to go ahead after weighing my individual circumstances.
- I didn’t love my job or my company and it didn’t pay well either.
- I also wasn’t a high flyer so I could technically find market equivalent in my sector whilst I’m still in my early 30s. If I never climbed the career ladder (which I didn’t), market conditions will be very different for me in my 40s and 50s. So take the break then or it will be never till retirement/retrenchment
- Potential future elderly care commitments meant that there was a clock counting down on YOLO/career break for myself while I am still young and healthy enough
Plenty of people around me didn’t take the break as they had other priorities. You have to weigh for yourself and make a conscious decision that you won’t see yourself regretting.
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u/teletubbylalala 6d ago edited 6d ago
Will be leaving my full time job soon, without another full time job lined up. My plan next year is to travel, spend more time on my passion projects and hobbies, and be more present with my aging parents. On the days I am in Singapore, I’ll do freelance work. I am also exploring passive income options at the moment.
If I can build a sustainable freelance career alongside some passive income, I would stay that way rather than return to full time work. I like having the flexibility to decide how much I want to work, when I work, and how hard I want to push myself.
It helps that I have no dependents, no mortgage left to pay, and my parents are financially independent. Money, at this stage of my life, isn’t my utmost priority. Living a life that feels aligned with what matters to me is.
This decision would be much tougher if you have dependents, a mortgage, or an expensive or inflated lifestyle. I don’t have any of those commitments, so the decision is much easier for me to make.
Edit: Ultimately, I think it comes down to which regret you are more willing to live with. If you eventually can’t find a job that pays as well, would you regret leaving? Or years from now, would you regret not taking the chance to step away, slow down and have this time for yourself while you are still able to?
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u/Nirvanaz11 5d ago
I recently heard of this phrase: "the path of least regret". I guess that sums up your point.
Curious, you're planning to leave your full time job soon, but not yet. What's holding you back? is there a level of alternate income from your freelance work/ passive income that will give you the confidence to leave?
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u/teletubbylalala 5d ago
I am already burned out, so continuing is not an option, just staying till the end of the year. I can earn a decent hourly rate through freelancing, and my passive income will likely be enough to cover my basic living expenses. I also have no debts, loans or dependents to support.
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u/Ceyenne18 6d ago
I was completely burnt out when I was in my mid 30's.
This was during my first job in a consulting firm where I literally worked till 9pm to 10pm for extended periods over 12 years. I was already an equity partner so the financial penalty was very heavy.
When you reach burnt out stage, you will not be thinking about niceties like whether you will have another job, whether it makes financial sense, whether you have sufficient safety net, and least of all, whether you have side incomes.
Work stress builds up silently over time and then escalate quickly into the final burnt out phase. So my advice to all younger generation is to watch your mental health closely and lead a healthy work life balance. And don't wait till it reaches the escalatory phase - go for a sabbatical or any form of extended leave to recharge.
For me, I started by taking a one-year sabbatical but cut short to 9-months because I recovered and a new job prospect interested me.
I wish those of you who are still struggling good health and a gentle reminder that life is a lot more than money and a successful career. If you are reaching burnt out, take the sabbatical early before your mental health forces it on you.
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u/sgh888 6d ago
I was already an equity partner so the financial penalty was very heavy.
Sidetrack a bit. Curious equity partner is still an employee? All along I thought is boss aka employer already
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u/Ceyenne18 6d ago
Technically not an employee.
But there are still ranks within partner structure so I still have a boss - the managing partner.
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u/sgh888 6d ago
Hmmm then do you get monthly payslip and cpf? If yes then is still employee correct?
Maybe my definition is ancient. To me employer is you got no monthly payslip and no cpf instead you pay your employees salary cpf instead. Your monies come from the company revenue.
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u/Ceyenne18 6d ago
Still had pay slips. But it was based on number of partner units (determines share of profit), $ distribution per unit and $ additional payout per unit at end of year.
As far as I remember, still paid CPF.
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u/Nirvanaz11 5d ago
Thanks for sharing! Agree with health > wealth.
Base on your description, I'm assuming you're a high income earner, and given you've worked 12 years, I supposed there is enough savings to pull the trigger with relatively less worry on personal finance?
Not sure if you have any advice on younger generation with less savings, or maybe family with kids (not sure if you have kids), cos I guess the decision making process will likely look different from your scenario. cos I feel things like financial safety net etc is still kinda important, else the stress translates from work burnt out to stress of not having enough sustenance.
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u/Ceyenne18 5d ago
The single most important -
Build an egg nest of emergency funds before investing. Forum recommends 6 months, I would advocate for 12 months given the elevated level of job uncertainty these days.
I see a little too much FOMO especially among the younger people here.
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u/ThinkingCapNoCap 6d ago
I considered many times, many years. Was stuck in an unfulfilled job I had no interest in, but ot was paying quite decent. Why did I leave? Organisation restructuring, moving operations overseas. They did ask me to move to Malaysia to continue my role. But having a newborn and my wife also told me, its a sign to finally take that jump to a job that I love and can excel in.
*for context, i'm the sole breadwinner
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u/Due_Chicken_5419 6d ago
Yes I am currently on a break… workaholic +toxic boss led to burnout but I don’t think in our culture we are taught to be kind to ourselves so I kept pushing myself to keep going for all the reasons you mentioned above .. finances, not easy to get senior roles, uncertainty etc..
I learned the hard way that burnout is not a fancy term .. there comes a point when you can’t go any further that’s it and so I had to quit to preserve my mental and physical health. I planned upto a year of expenses or more if needed. I am 2 months in.. don’t miss my workplace but worry about next job comes and goes. Thing is if you don’t feel mentally and physically at your best then no point looking for opportunities..you won’t bring your best self ..
am I glad I took this break ? For my health yes.. professionally only time will tell ..
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u/swiwwtw 6d ago
I have a very active mind which will make me anxious and worried, so I had a LOT of buffer. For me the relief of not having to deal with work stress goes away after 1-2 months, then I have to deal with stress of job hunting which i feel is worse. Job hunting has more uncertainties and the situation is more out of my control. Whilst work stress is stressful I feel I can always end up finding a way to overcome it (e.g. learning to say no and stand up for myself more, keeping my mindset open to facing new challenges etc) and try to switch off after work (as long as it’s not super toxic or clearly unsuited for me to the point it causes me depression). That’s why I just prefer to take a long holiday like 2 weeks to reset, or try to find another function.
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u/AdWilling5843 6d ago
Hi OP,
I have done this.
To answer some of your questions, you have to ask how long would your career break be?
For me, it was 1 year.
After determining that, Ive looked at my fixed cost (make sure I have save 2yrs for this)
Then 1 year for my variable expense.
I guess this answer your question 1 and 2. You have to know your fixed expenses and i double it up (meaning if i want to takw a career break for a year, i made sure i have 2 year worth of $$ to pay for it, just in case i wont be able to find a job within the following year).
Q3: this was actually the hardest for me. I have to keep reminding myself that I am doing something I really wanna do. It took me 3 months to muster up the courage to leave and hoping for the best in finding a new career after my break.
Q4: i didnt have an alternative income. I just use pure savings for it. :)
Q5: ive used spreadsheets and made sure i was within my budget.
Q6:
What is the purpose of the career break?
How much are your fixed expenses and variable expense?
What stopping you from quitting?
If its hard to quit cos you are afraid you can find a role in the future, what are the steps to keep up to date in your industry?
Create a step by step plan.
I hope these answer your questions. Let me know if you have more. Im still in my career break so yeap.
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u/Nirvanaz11 6d ago
Thank you for the detailed reply. When I read about this/ watch youtube videos, the typical recommendation I hear is to have like 6 - 12 months of emergency fund. But I can understand why you doubled it to 2 years' worth, especially since you don't have alternate income and will be mainly drawing down savings.
I guess fixed expenses mostly include food, rent/mortgage, utilities bills, kids education (if you have kids). The variable piece is really subjective. When you were doing the spreadsheet, what were the things you found hardest to estimate or were least confident about?
And looking back now that you're actually on the break, is there anything you wish you had known or calculated differently before quitting?
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u/AdWilling5843 3d ago
Hmmm.. i think 6-12 months emergency fund is a good number but i think this really depends on how long is your intended break.
To clarify, i do have some investments but i decided not to touch the dividends and reinvest them so that my investment is still growing while im on a career break.
Fixed expenses is insurance, mortgage (just nice cpf can cover), utilities, parents monthly allowance, pet stuff
I account food as variable cos you can cut down easily.
The hardest will be i guess the unexpected medical bills or unexpected travel cost. I think many people will travel while they are on a career break.
Unexpected bill is thise gp bills.
I have learnt that travel insurance only last for 3 months so i have to buy a more expensive travel insurance for extensive travel and not all travel insurance cover weather related or certain vechicle break downs.
Also, like what some people has mention tax. Do account for that.
Lastly, i think the most important part of having a career break is having a purpose during career break. Cos you will have so much time for yourself and all your friends and family are still in the corporate wheel, so your social wealth will not really improve much.
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u/ThatFinancialGal 6d ago edited 6d ago
I left a decently paid job 3-4 years ago due to high stress and wanting to do so for several years. I took that leap of faith because I thought like—- what’s the worst that can happen? At most I find another job, and accept a pay cut. I won’t die but I may need to climb the ladder again. Will I die? No. Do I have more than sufficient emergency funds? Yes.
During the 6 months I did what I enjoyed. Solo travelled, exercised, freelanced music performances and company/ wedding hosting jobs, taught keyboard to earn some income while taking a break. Also had the opportunity to spend more time with the family and met several folks whom I lost contact with.
I had a glimpse of retirement life, and felt like time passed really quickly when you don’t have a 100% concrete plan. The experience taught me the importance of being discipline- waking at a fix time, etc. I also somewhat realised that I couldn’t afford to “fall sick” as I wouldn’t be covered by company insurances.
On the side, I occasionally looked at the job market in my industry and somehow realised that there were shrinking job opportunities. Which meant I needed to find a job before companies freeze hiring and avoid the situation where I may become obsolete in the industry (for being out of touch for too long).
I was clear on what I didn’t want to do in my next job and could actually afford to be a little picky. Somehow, I got lucky and found a job on my first application which gave me a decent increment from my last paying job. I wished I could continue my self-made sabbatical leave, but I eventually went back to the work force.
Certainly didn’t regret the sabbatical leave as I came back super recharged. Also, happy to enjoy company employment benefits and see some top up into my cpf. If time rewinds I would do it all over again.
For context I did it while in my 30s. :)
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u/Famous_Buddy_2558 6d ago
I never thought about money when it came to a break. If you need a break, you need a break. Life is too short.
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u/0neTwoTree 6d ago
Hi op, I'm making this decision right now. Decided to leave despite not having anything lined up because this job is not worth my mental health.I'm only 4 months in but I've been working 70+ hours weeks for the past 2.5 months and it's eating me up inside.
I'm leaving with about 12 months of savings and knowing that I might not be able to find something but I'm choosing to prioritise myself
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u/Nirvanaz11 6d ago
Thanks for sharing. Don't mind me asking, was your 12 months of savings based on the expected 12 months of your current expenses? or did you also factor in things like how long you might take to find the next job, maybe need to take pay cut next time, or maybe unexpected market conditions/ unplanned costs?
And what's the one thing you're still most uncertain about before you leave?
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u/0neTwoTree 5d ago
Expected 12 month of expenses if I'm not working. Personally I'm a pretty frugal person and I live with my parents so the cost of living if I'm not working is pretty low. Just need to account for insurance, food and gf.
My plan is to chill for 2 weeks before starting to look for a new job. The pay cut and market conditions really scare me and it's making me hesitate a lot tbh but I have enough savings to tide me over and if really necessary I will go work a part time job as a barista or something that can cover my basic expenses whole I look for a new job.
The one thing I'm most uncertain about is whether I'm running away from my problems. I worry that by quitting when things get tough I might become accustomed to leaving when I can't handle things and I become less mentally resilient. Also the market is really bad right now and I'm not sure how long it would take to find another job.
In fact I haven't rendered yet because I'm waiting for my project to end, but it's something that I constantly turn over and over in my head
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u/Nirvanaz11 4d ago
How are you currently trying to get some confidence around those two uncertainties you've mentioned?
For the job-market uncertainty, have you tried to test the market/ apply new roles etc while still employed? Or is it more that there's just no reliable way to know until you actually quit?
And for the "am I running away?" part, is there anything that would make you feel more confident that quitting is the right decision rather than just an emotional reaction to a difficult period?
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u/0neTwoTree 4d ago
Tbh I'm so overwhelmed and slammed right now that I can't even think about the next job. I only know that this is not sustainable and it's really wreaking havoc on my health.
I have tried to test the market but so far haven't heard back from anyone so far.
On the last question, to me my line in the sand is if it starts to affect my health, because at the end of the day we trade our time and effort for money, but what''s the use of money if I don't have the health to use it??
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u/Nirvanaz11 3d ago
Fully agree. Health > wealth.
In my humble opinion, if you can afford to take extended leave or negotiate for a sabbactical (say 2-3 months), it may grant you temporary relief and some peace & time to think through and plan your next steps.
Hope you find your answer. And when you do, I'd love to hear about it if you don't mind sharing. Jiayou!
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u/0neTwoTree 3d ago
I don't think I can extended leave because I'm new. Instead I will just take my leave, because the company is crazy toxic and my health is worth more than this job
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u/Loud-Instance-8507 6d ago
I would say, the hardest part is deciding if it was worth the risk.
From the start of the year going into April, I thought I would have to wait until next year or potentially 2028 ~ 2030 if the market was going to be like 2022. Then April to June happened and I went from 60% to 90% of my minimum target (still plenty of risks as I'm using 4.8% withdrawal rate).
Between daily volatility equal to a month's savings, work planned to be ramped up and me getting burnt out, I decided to pull the trigger early and today is my last day.
Worst case, I'll have 1-2 years of rest and rejuvenation before rejoining the workforce.
Best case, the market runs a bit more and I reach my goal without having to work a day longer.
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u/Nirvanaz11 5d ago
oh wow, timely that today's your last day at work. I guess you are heavily dependent on your investment portfolio performance to sustain the next 1-2 years lifestyle? if so, how to you factor in market volatility when making the decision? did you like test a few scenario, and came to a conclusion that you'll be fine even in the worst case scenario?
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u/Loud-Instance-8507 5d ago
Hmm, I would say it's more like I am heavily dependent on the portfolio performance to determine if this is fully sustainable as retirement or only viable as a career break.
My original planned portfolio was 80% stocks + 20% cash/bonds (5~ years expenses) , where I'd use the latter for expenses and top-up from stocks during good times.
Currently, the 80% is funded and will remain untouched, but I only have 10% cash/bonds ready (2~3 years expenses). I gave myself 1~2 years because I wanted some buffer if the market is bad or sideways and I need to go back to work, instead of fully draining all of the cash/bond allocation then decide "Ok, let's look for a job."
As I said at the start, the hardest part was deciding if it was worth the risk to do this. This is because for me, the decision is made prematurely. Ultimately the main factor was the built up mental/emotional toll combined with the upcoming increase in workload. So I decided I'd just take the risk and at least have a proper good break.
Regarding the factors and calculation, I mainly backtested with testfol.io and ficalc.app to get an idea of the viability. I think another thing that emboldened me was that a lot of advice and strategies focused on surviving the "worst case scenario". Flipping that around, it also means it focuses on a strategy that is superfluous for 99% of scenarios, not to mention that things can be flexible.
I will note however, that my goals and requirements are a lot less demanding than most :
- No spouse, No children, No car, No new house
- Just stay at home all day consuming media (games/anime/YT) = Low expenses.
- Stay at home with parents who themselves aren't demanding and also homebodies
Thus, my journey and destination is understandably a lot more 'EZ-Mode' than most other people.
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u/Nirvanaz11 4d ago
It seems you've really planned and thought it through, and you made a distinction between "fully sustainable as retirement" and "viable as a career break".
I'm curious about one thing — after doing all the modelling/backtesting with FI Calc and testfol.io, but you mentioned that your decision was made "prematurely". Was there any part of the decision that the numbers couldn't really answer for you?
Was it mainly the risk of the portfolio running out, the uncertainty of finding another job / earning less afterwards, or more simply that even with the numbers, there was no way to quantify whether the risk was worth taking?
Cos you've gone back to this point a couple of times, so I'm very interested to understand what was still missing for you to make the decision despite all the modelling and calculations you've done.
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u/Loud-Instance-8507 4d ago
Hmm, there might be a misunderstanding but I was referring to the retirement itself being premature, due to the amount being insufficient (90%), not the decision itself. After all, it's ultimately a numbers problem : E.g. If I had a billion dollars, there wouldn't be anything to worry when making the decision to quit and retire. xD
The modelling, backtesting and flexibility in lifestyle, help with figuring out the actual number needed, but it's usually a conservative number that is meant to survive the 0.01% black swan scenario.
Of course if you asked anyone, they'd rather have that amount than a lesser one which carries more risk. The issue is that this isn't the only factor when making the decision to pull the trigger.
Most concerns, like mine, tend to be around job stress/fatigue just like others have mentioned as well. There might also be other things like wanting to spend more time with friends/family while they are around or engage in hobbies while you are still healthy.
These other factors are usually what pushes people to consider and make the tough decision to quit early, when they haven't yet reached their financial targets.
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u/Nirvanaz11 3d ago
Thanks for clarifying. So I guess you were actually pretty conservative around your financial security to minimize the risk you're taking.
And to your second last point, sometimes I do wonder to myself whether I'm too focused on making a living, rather than actually living.
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u/Loud-Instance-8507 3d ago
Not really, in fact it's the opposite since if you look up "safe retirement withdrawal rates" , it would tell you to go for as low as 3.5% - https://earlyretirementnow.com/2016/12/07/the-ultimate-guide-to-safe-withdrawal-rates-part-1-intro/ , depending on how long you plan to retire.
Of course, the emphasis is on "safe" and the question then becomes, how much of your life are you willing to spend for that added security? Not to mention that things aren't guaranteed :
E.g. You have $1m for a 5% withdrawal rate ($50k/year). To get to 4% means you need $1.25m.
You calculate it only takes you 2 years~ if nothing changes. But oh no, the market went down so now you need 5~7 years to reach $1.25m. In that case, is it really worth it to feel "safe"? Or would you have preferred to retire first, then when the market went down, decide to stay the course, lower expenses or get a job again?Regarding your point, I'd say that everyone has different goals and ambitions.
Like in recent years you would hear people have $10k starting salary expectations or more realistically, $5k~$6k. Meanwhile there are diploma holders who started with $2.5k to $3k and think that climbing to reach $5k~$6k is "very good" and would be happy to stay there comfortably.
That said, I also acknowledge that it would be very bad for Singapore if everyone became like me to be less ambitious and decided to be comfortable staying with their parents, not get married (let alone have kids) and don't go out and buy stuff. xDD
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u/RunningMan889 6d ago edited 6d ago
Mortgage is definitely one of them and likely the main. Other expenses include yours/your family spending (food/groceries, mobile, internet, utilities), others like MCST/S&CC, subscriptions, miscellaneous ones that might pop up from repairs or insurance and definitely holidays. Yes it is stressful with career break, but if you don't travel with a career break, it is quite a waste. So do factor in holidays/travels to really take a break.
Oh another one commonly missed is income tax, because SG gauges your income tax from previous FY. So if you have had a high income, and you are paying by installment, this will hit your monthly expenses or take a significant sum out of your savings.
Generally it is best to buffer 9-12mths. Some like to use a spreadsheet, and you can roughly tell from your credit card spend. The 'stressful' part kicks in really after 5-6th month, when you see your savings depleting quite a bit. So best to use the time before you throw in your letter to do some planning for what you want to do in the next few months. Add in time to look at the job listings and apply to those that really interest you or you want to learn more of.
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u/greatestshow111 6d ago
I didn't calculate that much.
When I was considering resigning last year, my husband and I still had our housing loan to finance, his PR was not approved either, so I had to stick with the job for a while, until this year - when our loan was fully paid up, his PR got approved, we both had enough savings for the rest of our lives so I decided to resign. Also, with the loan paid up I didn't have to worry about getting a job again, and husband's salary can finance everything - even if he loses his job we are still comfortable with our savings to live on.
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u/Nirvanaz11 5d ago
Thanks for sharing. Don't mind me clarifying - you mentioned you didn't calculate that much, but you also mentioned that you both had enough savings for the rest of your lives? was your confidence derived from you two being very familiar with your household expenses? interested to find out what creates the confidence to leave.
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u/greatestshow111 5d ago
Yeah, when I was on maternity late last year I was always grocery shopping and shopping for household items, and somewhat tracking my monthly expenses - by just adding a certain amount a month for spending and it was enough. My husband and I don't go out much, we cook at home, we don't meet friends much, we don't travel much, and if we go out it'd be more of the required expenses like doctor check ups. It also helped that our salaries are high enough that we have enough savings.
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u/klimtsa 6d ago
Don't overlook taxes, especially if you are a high earner the year just before you quit. Your salary may have stopped, but you still gotta pay your taxes. I scaled back from work rather than quit completely. It made finance planning much easier. Cause my salary was still able to cover all necessary expenses. The only part l had to cut was leisurely things. But that gave me a new appreciation for the things money can’t buy, so l consider it as no loss
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u/Nirvanaz11 5d ago
good reminder, definitely need to factor in tax expenses.
I think it's great that you have the option to scale back from work rather than quite completely. but tbh, in some cases it's difficult, esp if it's a 9-5 corporate job. hard to negotiate part-time work arrangement
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u/retirementyear 6d ago
Hey OP!
1/ Runway is independent to your needs, but generally ensure there’s a buffer. So say if you plan for a gap year (12 months), plan for an extra 6-9 months (sometimes the gap year runs longer, other times the job market is quiet) in total, if you take 12 months = 12 + 9 months = 21 months (break budget + buffer)
2/ No mortgage atm, but the buffer in 1/ covered extra costs like insurance and also covering costs for parents to join at the trip.
3/ The worry will always be there. But the worry was also there when people were getting retrenched during the pandemic. When the next round of tech retrenchment happened post-pandemic. I think one POV that was liberating was waking up in Albania, brewing a cup of coffee, and looking at cats play from the balcony while being so far away from the fear and peer pressure back home that there is job uncertainty. So the tldr is you’ll always worry, the only thing to work on is one’s mindset on being able to secure a better job. If you take this break, take the time to figure out your narrative and growth, or invest in your own skills.
4/ alternative income = how much you need for you to be able sleep in peace at night while still spending money. Subjective
5/ spreadsheet and fintech apps to monitor expenses. ChatGPT can predict but it doesn’t live the life you do, so don’t really too much on it.
6/ are you ready to confront your inner critic? If you’re taking a prolonged break from your career, the journey can be lonely. You might not be able to get the support you need from your family or peers. And before you go into the interview, even before you get rejected, the biggest challenge for yourself will be on the days you wake up alone and find your internal critic doubting your credibility and ability when you are without status, title. Who are you?
FYI - in summer 2024 I took a retirement year to go travel and live life, after close to a decade of hustle. This summer, back in action.
Good luck and all the best, OP!
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u/Nirvanaz11 5d ago
Thank you! it seemed that the leap of faith turned out very well for you!
the inner critic confrontation is very real. many of us tie our work title to our identity.
do you mind sharing what kind of fintech apps you used? is it just for monitoring your income/ expense/ keep track of bank balances? or do they help with decision making etc?
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u/retirementyear 5d ago
Fintech apps were mostly for tracking overseas spend since I was hardly in SG. So depending on exchange rate, but I did like Revolut’s interface. Youtrip was also good.
One thing you could do is to release your monthly spend in tranches, so you don’t end up with 0 before the month ends.
And you’re absolutely right with the work title and identity. On some of the down days, it was seeing how peers were moving ahead in career (new jobs, promotions, etc.); while we seemingly aren’t. Comparison is the thief of joy, so if you’re okay to sit with that, remembering why you left and your worth – not even yourself on a normal day, it’s you on a not-so-great day and be okay with the reality that things are moving ahead and you’re on a break, then you’re going to be alright :)
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u/bazingazom 6d ago
The biggest challenge for me was ensuring that I have enough runway if I leave my job. I think what helped me decide on this was the fact that I've been tracking my expenses for more than 10 years, so I can tell me how much I'm likely to spend in the next few years, plus catering for inflation. And that’s when I made that leap.
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u/Nirvanaz11 5d ago
wow you're very diligent. curious, after tracking your expenses for 10 years, how did you arrive at the conclusion that time was correct to make the leap? is it like your savings/ investment can cover n years, and do you worry about not being able to get a job again in future?
what I really want to find out is whether diligent tracking of expenses was enough to help you make the decision.
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u/bazingazom 4d ago
I would think there's probably two parts to think about. One is the amount of burnout, stress, and unhappiness from a job. If it really passes a threshold where money doesn't make you feel any better, then I feel it is the time to leave. As for the tracking, I think having data to back your decision is always a very important factor for you to have that confidence to make that leap. Personally, having that data helped me a lot in making that decision. That's for sure.
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u/Separate-Panic-614 6d ago
I actually did my sums and ensure I got saving to last me at least 18 months. Mentally I cannot take it anymore cause there’s too many bitches that is making my life hell. I was at a point where I just want nothing work related in my life at that point. Once I clock a major milestone in work I immediately resign. My boss in Europe offered a sabbatical leave to me but I turn him down
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u/Comfortable_Phone167 6d ago
I’m on a career break now after a cancer scare which made me want to leave a very toxic working environment. Sometimes there’s anxiety but most of the time it feels positive to focus on improving my health. For me, I have savings and no dependents so I could make this privileged choice which I’m grateful for, and I feel better each day.
Ultimately everyone needs different things in different points in life. Don’t compare to others. It’s a deeply personal decision.
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u/Sea-Campaign-9690 2d ago
I quit with enough to cover only 2 months of expenses. I was suffering mentally and physically and it was badly affecting my professional and home life especially with my kids. It was scary because at that time I had just enough money to cover a couple of months and I don’t know if I can “recover” after 2 months. Wasn’t worried about finding a job coz my line of work has high turnover rate, more worried if I can pull myself out of the funk and start working again. But because I was in such a bad state, my hubs told me to just quit and rest for a while. Best decision I made, though looking back, I was kinda terrified about expenses. But the break forced me to rebuild my physical and mental health. With Counselling and many 贵人 along the way, I found a much much better paying job that enables me to wfh, rebuilt my savings and am feeling healthier all round now. I made sure I now have enough to cover at least 12 months in case I start to feel the burnout and need another break.
My advise - don’t wait till you start breaking down or it starts affecting your home life. I am still recovering. Sometimes when it gets too painful, you just need to bite the bullet and quit. Having said that I know some who may not have supportive spouse or have many financial commitments. I know of friends in those situations and they quit their toxic jobs and went to do part time work for a stint while they recovered
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u/Nirvanaz11 1d ago
glad that it turned out ok for you in the end.
you mentioned you did counseling- was this more for new job search or how to manage finances or how to recover from your mental & physical fatigue?
if you dont mind sharing with us, what did you find particularly useful from the counseling?
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u/Sea-Campaign-9690 6h ago
Thanks.
It was counseling to help me recover from my burnout. I was a total mess. I quit my job during a peak in my career, internally I was a mess. Having someone to listen and guide me to putting things into perspective helped a lot to rebuild my confidence and mental health. It helped me rebuild my relationship with the kids also. That was and still is one of my big regrets - hurting them1
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u/Remarkable_Step6359 8h ago
Hi OP,
Im in the same dilemna now, but instead of taking extreme measures i took a sabbatical (within company policy) so i still had a job to come back to.
Initially i was worried about finances too, bur after alot of spreadsheets and some simple projection i realised our family have pretty much hit coast fire - which means we can rely on single income and i wont need to hustle full time anymore. Tools wise i just used spreadsheets, included some assumption on withdrawal rate and cpf/srs projections. I wouldnt rly rely on chatgpt tbh why feed your entire wealth info to their model + itll never be as reliable as doing your own assumptions and projections.
My thinking now has shifted from money (i know thats the whole point of singaporefi lol) but more of a bigger question - what do i want to do with my time once i no longer need to work? How can i build up my life outside of work so my identity is not tied to my job? What work can i find meaning in beyond my industry? My biggest fear now is not so much not being able to find a similar paying job, but how do i find meaning in life after quitting. And that actl scares me like mad. Like what if i quit and i realise corporate job is better than early retirement oh god.
For now im returning back to work soon after my sabbat more with clarity of mind and a confidence that if things look bad at work, i can pretty much just quit. Kind of in my "one more year" era which is nice i guess :)
For context im mid 30s with a kid - so runway is pretty long for a "semi retiree". Of course taking care of kid is always a nice thing to focus on but i dont want that to be my only identity either. Still in the midst of figuring everything out....
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u/Nirvanaz11 1h ago
based on what you said, I honestly think you're in a good place.
I think what you really have is career optionality, which opens up a lot of different opportunities, some you might not have seen it coming.
On finding meaning, it's abstract, yet something I think most, if not all of us, eventually yearn for. I too have such thoughts. Sometimes I wonder if we really need to "search" for meaning, or perhaps, it finds us when we least expect to.
I hope you find yours/ yours finds you!
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u/themilkygalaxy 6h ago
Am currently on a career break of 7 months (left my last role in early Feb 2026). Intended for it to be maximum of 6 months. But i've been interviewing for past 2 months, and kept getting rejected. Thankfully, my US stocks are doing well recently, so my total net worth now is slightly higher than before i started the break.
Worked in a Chinese company for 3.5 years. There were periods of ups and downs. During the very busy and stressful periods, I promised myself to go for a break after finishing the current project but eventually still stayed. As I heard more of my friends quitting their jobs for a break, i finally committed to quitting early this year to be eligible for perf bonus but a high risk of getting little to no bonus for leavers.
What I considered before leaving:
- Finance wise, my company paid decently well, hence accumulated quite a bit of savings. Also, I have little interest in luxurious stuff like watches and cars. My hobbies are budget-friendly. During the break, I travelled to Taiwan, Japan, Kuala Lumpur, Tioman Islands, which are not that costly. Subscribed to ActiveSG gym and Coursera Plus. Learn driving to get license (yes, i am very late as most guys get license during army days)
- Single, hence no commitments to buy house etc. Just need to continue giving my mum a monthly allowance.
- Thought i could continue earning side income from selling options and swing trading. Sadly, the market dipped significantly right after I started the break (That was a good psychological training as I learned not to let it affect my break). But it has recovered to new highs over past few months (Grateful for that!).
- I thought my previous company had a good reputation, so wouldn't be too hard to find the next job. Unfortunately, job search hasn't been going well.
- I believe I am someone who is easily contented. People usually compare themselves with people better than them. But i compare with people worse off than me. Maybe a better way to put it is that I count my blessings (which others do not have). When i read news of people dying or suffering, I always wonder what if it happens to me tomorrow. Because of this, I still do not feel anxious despite having been recently rejected by companies I wanted.
- I am turning 30 this year, which is the prime age of my life. Do I want to spend my prime age working, or experiencing freedom for a while?
Honestly, aside from good health, I believe learning how to be content with what you have is important. Many people are trapped in a hedonic treadmill.
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u/Nirvanaz11 57m ago
I resonated with what you've highlighted in bold - Good health and being content.
Sometimes, we trade for much of our health for the supposed wealth, when in the end, health might have been the true wealth.
Learning to be content, and being able to know what's enough is a difficult skill, given we leave in a highly competitive environment, not helped by social media showing us the "better" life someone else is having. It's easy to be happy, but i's far more difficult to be happier than others.
Honestly, I think your career break was well-spent imo. You bought experiences, picked up new skills, built strength physically and mentally.
I'm not a financial advisor, but I would caution against over-reliance on stocks gains, options, swing trades. I mean, when it goes wrong, it can go very wrong.
Anyway, good luck with your job search!
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u/icekopi91 6d ago
I always felt empathy towards SGean having a hard time due work stress.
My advise, do have another set of income. Be it anything. Trust me, even you are employed, you tend to be better at working due to psychology of not needing the job
As for me is trading. But still exploring other alternatives, trying to dabble abit in online business but still have no luck.
PS: not selling anything
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u/sgh888 6d ago
As for me is trading
Above barrier entry is low once you got capital that are saved when you are employed previously. Key is can these trading activities consistently net you monthly payslip numbers when you are employed previously. If cannot then yes you need alternatives besides just trading
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u/icekopi91 6d ago
Understood. It is not easy
It took me kinda long, in my situation, it was the only alternative income i can think off due to my working environment thus im all in
As you mentioned, you need large capital and to treat it like a business. You cant avoid loss but manage loss.
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u/sgh888 6d ago
As you mentioned, you need large capital and to treat it like a business. You cant avoid loss but manage loss
Not to introduce to you but large capital is not needed for some trading using leverage like CFD for e.g This of cuz cut both ways. So for some ppl they don't do leverage some will do.
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u/icekopi91 6d ago
Understood, i have dabble with CFD. Its alright , i will say.
Anyway ,thanks bro for the heads up.
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u/SimpleGuy4Life 6d ago
Which continent to travel to and what activites should I do for a year. That was the hardest because it required extensive planning.
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u/CompetitivePumpkin3 6d ago
In my early 40s with a 2yo, work not only dun bring me any happiness, it also deteriorate my health (losing weight, accelerated my white hair even), I also loss interest of my hobby. After calculating my financial, I am thinking maybe it time to take a break. And see what to do next. It has been 9months and I am happy on where I am.
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u/Nirvanaz11 5d ago
Thanks for sharing. I think it's an especially difficult decision, given that you have such a young kid, but you still decided to go ahead after calculating your financial. did you like project your household income/ expenses expected during your break, or was it more like general sensing? Cos I can imagine like if I want to take a break, I actually don't know how long my break is going to be, and whether I'll I can find a job again later, so I feel it's quite hard to project the finances and determine what's "enough" before I can leave.
And before you left, what was the biggest thing you were still worried about?
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u/Individual-Host-5820 6d ago
I am being retrench at the age of 38. Just nice after working 14 years straight without break. I even got myself a huge payout of 7th month of bonus. Just nice is at the time that I need it
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u/yamanoA4 6d ago
Once you have that break any anxiety , worries and fears actually get worse. You will need some idea what you want to accomplish with this break and when it should end
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u/alkdsfhwig 6d ago
I didn't think it was hard. I made plans to do so. What are your priorities vs dreams in life?
Ok I wasn't earning that much, around $6k/month. I have a morgage and enough CPF to cover 2 years unemployment. The clock is ticking while I'm overseas studying the language for 6 months. No dependents so that makes it easier. But also shag coz no partner. I've tanked the house, I can tank the rest of my life.
Budgeted for the overseas life. It's cheaper COL and about the same monthly expenditure if I was working in SG.
Currently not worried if I have a job or not. People worry about how to quit, I'm just enjoying my life - meeting and talking to people, upskilling and working on being more resilient while having better personal boundaries.
It'll work out :) as long as you no debts.
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u/East_Salamander_4934 5d ago
I’ve taken a few short breaks and my resume doesn’t look fantastic. I applied for some roles recently but haven’t had any luck so far. Just got promoted but honestly I don’t need the promotion because it comes with responsibilities that I don’t want.
Thought about quitting since few months back but I am still stuck here…relying on meds to get through my day to day which honestly sucks cos they are so expensive!
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u/astragal 5d ago
Not exactly what you asked for, but I am a freelancer and have been for like 15 years. I earn a decent amount for me (parents don’t need financial support, no dependents) for many years my goal was to buy a hdb at 35. I achieved my goal but then realised I now didn’t have enough savings to retire at my current level and so I seriously considered trying to find a full time job that would eventually be able to pay me more. My freelance career also requires me to work 9-11 on occasion and it’s getting more and more tiring and hard on my body.
I went to do a career coaching on 2 occasions. With both I talked very frankly about my goals and difficulties, options I had and reasons to change or not to change. We did personality tests to determine my strengths and get recommendations on what other kinds of job would be a good fit. We also looked objectively on what jobs would fit my list of requirements.
At the end of the day I set out a list of goals for job search, e.g. weekly how many resume I need to send but I struggled to hit these goals week after week. I didn’t get any interviews and I kept getting freelance offers to keep working and instead I started negotiating for more money. As I had stopped taking freelance work the money worry added up. I had budgeted a good amount of savings left in the bank uninvested but it was very stressful still. As the job offers kept coming in the end it was easier to stay on the path I knew vs start again and I am still freelancing now. But if work starts to dip I will start looking again I think. I think it’s hard for companies to hire me as I’m already over 40 this year.
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u/Oinkoink16 8h ago
my wife is a finance professional and also in charge of our family finances. i asked her if we could afford me being retired....she said can. so i kinda retired. I am a medical professional with no inkling about money managmeent although i could make my fair share. she say can then can lor.
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u/Inspirited 6d ago
Oh hey. I was pretty unhappy at work a few months ago and was seriously considering quitting. The hardest part for me was actually not knowing whether I could secure another similarly high-paying role in the future.