Gimme a Break

Like most big-ticket items in your financial life, such breaks can be managed, but they do require planning.

Although it's a bigger topic than can be fully covered here, here are some career and financial planning tips.

Career planning requires a look at how to exit and re-enter the workplace and how to maintain or increase your employment value during the leave.

• Make a deal.

  I know going into the boss's office to ask for three years off sounds like a daunting proposition. If you're an accomplished employee -- and they've invested a lot in you -- you should be able to find a win-win. Remember, it's hard to get something you don't ask for.

• Stay connected.

  While away, stay connected to co-workers and your management. Show your loyalty and keep up with what's going on in the business. Go to lunch with the boss and colleagues. You can also turn your time into something of value for your original employer by doing competitive research, contributing to projects or helping to train employees.

• Keep the saw sharp.

  Similarly, it's important to keep up with what's going on in the business and industry: new products, new competitors, new ways of doing things.

• Keep working -- on something.

  Unless you're a total workaholic, it's easy to settle too far into the alternative lifestyle. Sure, raising two small children, as my friends are doing, is pretty close to a full-time chore.

  But the more you can stay in a work mode -- doing something on the side, maybe some contract work -- the more prepared you'll be for re-entry. And it helps pay some of the bills. (One friend is teaching a 10-week IT management course on Saturday mornings at a local community college.)

• Plan your re-entry carefully.

  Let your boss, colleagues or prospective alternate employers know your intentions long before coming back. As with most aspects of business, good communication is key.

Not surprisingly, financial planning means covering short-term expenses and maintaining progress toward long-term goals.

• Sharp-pencil your spending.

  Figure out how to make one income work. Don't forget changes in your tax situation -- lower brackets and eligibility for the child credit are biggies. Make pacts in advance, such as less eating out and no home improvement projects. Be realistic.

• Plan assets.

  Assets -- home, cars, boats -- drive expenses. So adjust your asset base before you leave. Figure out which cars will suffice at minimal cost, and make the transition before you leave, to reduce stress later.

• Shift priorities.

  It's OK to shift some priorities. Perhaps early parental care for your offspring is just as important as an expensive private-college education later on. Make these choices deliberately, and return to those financial commitments after the leave.

• Create a reserve.

  Most couples, and certainly all singles, will need a reserve to cover expenses, both planned and unplanned. Make sure you have enough.

• Stick to the plan.

  The best-laid plans don't work if not adhered to. I've seen couples make a plan and keep it for a while, only to drift back into old spending habits over time. The unhappy result: debt and stress. A backup plan also helps.

The upshot of all this? Extended leaves can definitely work with the right planning and strong commitments, within your household and with your employer. Done wrong, you'll return to work with more stress than before -- a recipe for disaster.

Still, a break is nice to ponder as we stare at the long year ahead.