Taking Time Off & PTO

When you’re an employee working for a company, there are several laws and regulations put in place to protect you. The laws ensure you’re not overworking yourself, working in a safe environment, making a livable wage, and so on.

When you work for yourself, you might not treat yourself as fairly as you should. You govern yourself, and you make the rules as you go along. Taking time off may seem like a luxury that you cannot afford, and I get it. When I first started taking a day off here or a day off there, I felt like I was cheating my company. I needed to work around the clock to run the organization properly. I came to realize that work would always be there, and work would always accrue, whether I’m working or I’m not.

Initially, I was justifying and haggling about how I could afford or find the time to take time off. My revenue correlates to how many hours I work and how much time I put in. Missing a work day hits me significantly, and I can’t lose the income. I placed strict rules for myself and neglected hanging out with friends and family because I worked extremely hard for a set period, working up to a 3-day trip.

Do you take time off as needed?

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• No! I can't remember my last vacation.
• No, but I'm trying to incorporate time off.
• No, I like to work. I don't need time off!
• Yes, but not as much as I should.

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PTO

A perk most companies offer their employees is PTO (paid time off). Hours accrue as you work, and you can use the time (which equals money) when you’re taking time off.

If you worry that taking time off will affect your pockets, I can understand – I was nervous too. Taking time off and taking vacations often go hand and hand.

EXAMPLE: Do the Math!

You’re taking some time off and taking a mini vacation in a neighboring state. You’re spending 4 days and 3 nights at an AirBnB.

Expenses:

Gas & Tolls: $100

Airbnb: $550

Food: $100

Activities: $200

Total Expenses: $950

You work 7 days a week, you pay yourself on average $1,400 a week (varies based on output).

4 Day Vacation – Missed Income: $800

Total Cost of Your Trip: $1,750

A trip that is budgeted at $950, will cost you $1,750 because if you’re not working, you’re not bringing in income (if hours work is directly positively correlated to income).

Setting Up a PTO Account

I recommend setting up a new business savings or checking account solely for PTO. Of course, it will work a bit differently than if you worked for someone else, but it creates a fund for when you are ready to take off.

When setting up how much to pay yourself, calculate the sum of your bills, monthly expenditures, and how much you want to put into savings. Budget how much you need (per week/biweekly/monthly) and put the remainder in your PTO Account.

EXAMPLE: Do the Math!

You can afford to pay yourself $1,400/week.

Your weekly budget is as follows:

Bills: $500

Personal Spending: $300

Savings: $300

Budget/Week: $1,100

This leaves an additional $300 that you can place in your PTO account. When you’re ready for a trip, you’ll have a clear conscious, knowing that you’ll be able to afford it and you won’t be set back.