How To Plan For Maternity Leave When Self-Employed

Estimated Reading Time: 7 minutes

How do you fund maternity leave when you’re self-employed, and no one’s paying you to take time off? I saved three months of living expenses, took 4.5 months off, and didn’t lose momentum in my business. Here’s exactly how I planned it and what I’d do differently next time.

Continue reading or listen to the podcast episode!

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How To Plan Maternity Leave For Self-Employed Families

As a podcaster, blogger, and podcasting coach, I quit my job in September 2021 after six years of side hustling.

We found out we were expecting our first child right before I resigned. Not only was I planning for maternity leave, but I was also a brand-new entrepreneur. The pressure was on!

If you plan ahead, taking maternity leave doesn’t have to stop the flow of your business and doesn’t have to disrupt your career.

When I searched for information on planning maternity leave as a business owner, I was surprised that there wasn’t much available.

I know what it’s like to have many unanswered questions, so I hope this article and podcast episode help more families confidently set a maternity plan (or parental leave plan) and fund parental leave.

I funded my self-employed maternity leave by saving three months of living expenses and extended my leave to 4.5 months to give myself more time to adjust to life as a new mom.

If I could do things differently, I would have saved four months of living expenses (business and personal) instead of three.

Here’s an overview of how to plan for parental leave:

What maternity benefits do you qualify for?
How long would you like to take maternity leave?
Create a maternity leave savings plan – how much will you save?
Determine income streams
Hire and train team members
Communicate with clients
Set email autoresponder
Plan a return date
Enjoy your leave!

Why take maternity leave?

Our decision to take parental leave came down to spending quality time with our son.

Maternity leave was a non-negotiable for me. At a minimum, I wanted to walk away from my business for three months to care for my son, rest and recover, and spend time as a family.

Our time together was precious, and I knew we would regret it if we didn’t make space to welcome our baby.

If you’re on the fence about taking time off, consider if you’ll regret this decision later — whether you’re having a baby or adopting.

Also, remember that you do not have to leave your business altogether. Reduce your hours or only work on projects that light you up.

Here are the pros and cons of taking maternity leave as a business owner.

Self-Employed Maternity Leave Pros:

No prior approvals since you’re your own boss.
Have the flexibility to take as much time as you want with your baby.
The freedom to work part-time during maternity leave if you choose.
Progressively come back to work, decide what you work on, and how much you work.
Take control of your motherhood journey.

Self-Employed Maternity Leave Cons:

Fully or partially responsible for funding your leave of absence.
You may have to hustle to bring in enough income to cover your salary.
You may not be financially prepared, so you may have to cut your leave short.

1. Setting Intentions

Planning for maternity leave starts with setting intentions. How do you imagine parental leave?

How long will you take off from work? A few weeks, a couple of months, or indefinitely?

Do you plan to completely step away from your business, including not answering any emails or client calls? Or do you plan on working behind the scenes for a few hours a week?

How will you continue to serve your clients? What tasks will you automate or delegate, and what team members will you onboard?

In summary, the time you take off depends on your capacity, wants and needs, and financial situation.

The beauty of being your own boss is that you get to choose what works for you (and you can change your mind).

When should I plan for maternity leave?

I started planning for maternity leave as soon as I found out I was expecting. The earlier, the better!

As we prepared for Baby K’s arrival, we evaluated our financial priorities and set intentions for work and life.

Listen to the podcast episode to build an actionable maternity leave checklist for entrepreneurs.

Listen on Apple Podcasts | Spotify | Amazon Music | Pandora | Any podcast player

How long is maternity leave when self-employed?

There’s no fixed length. It depends on how much you can afford to save, how long your business can run without you, and what support you have in place.

Are maternity leaves paid?

No, in the U.S., self-employed people don’t qualify for paid maternity leave through any federal program. A handful of states offer partial compensation through paid family leave programs, but most self-employed workers have to self-fund their leave.

Who pays for maternity leave?

You are responsible for self-funding parental leave as an entrepreneur, small business owner, or freelancer.

While the federal Family and Medical Leave Act (FMLA) doesn’t cover freelancers, there are a handful of states that provide some compensation for paid family leave for freelancers and contractors, including Connecticut, California, Colorado, Delaware, Maryland, Rhode Island, New York, Massachusetts, Washington D.C., Oregon, and Washington state.

State programs are funded through employee-paid payroll taxes, meaning you have to opt into the program before you draw down funds. Check your state laws to see if you qualify and if there are any waiting periods.

Want to get paid during parental leave?

There are a few ways to make money on maternity leave.

Can you start maternity leave before your due date?

Yes, you can start your leave days, weeks, or even months before your due date. In fact, many women give birth earlier than their estimated date anyway. Build flexibility into your plan rather than assuming you’ll work right up until delivery.

Is maternity leave like a vacation?

No, maternity leave means caring for a newborn around the clock. Expect frequent feedings, diaper changes, and interrupted sleep every 2-3 hours, even with support in place.

2. How To Make Money on Maternity Leave

Save monthly living expenses:
- For example, if you are taking (3) months of leave, save three months of living expenses.
Take on extra client work to make more money.
Access state-paid family leave benefits or disability benefits.
Generate passive income (takes longer to implement but can help bring in the bacon while you’re away).

To make money on maternity leave (or at least have a savings cushion), set a savings goal based on your living expenses (personal and business) and start saving immediately.

Create a bank account for your maternity leave funds as part of your maternity leave savings plan.

Bethany Atazadeh has a great video on what she considered as she prepared to go on maternity leave for three months.

3. Communicate Intentions

Next, communicate your intentions to your team members and clients early, so everyone is on the same page.

Dust off those operations and procedures manuals, start recording tutorials for your team members, and batch client assignments.

Listen to this podcast episode on Spotify.

4. Hire Team Members

Consider hiring team members to complete tasks that will move your business forward.

If you already have team members, consider delegating more tasks to them by adding more responsibilities for a limited time.

If you have a larger team, appoint a point person to manage and communicate with the rest of the team during your absence.

I hired a coordinator for my maternity leave to lead events inside my podcasting community. Since I wanted to keep this part of my business running, I hired help.

I also delegated more tasks to my other team members and empowered them to make decisions without me.

Think outside of your business. What help will you need to run your household? Babysitting, cleaning services, laundry services, or meal delivery?

Lastly, what type of family support do you have? Can your family or friends spend a few days or weeks with you to help you transition?

5. Prioritize Passive Income

Wondering how to make money on maternity leave? Or how to make extra money on maternity leave?

Having months to prepare for our bundle of joy, I set up passive and semi-passive income streams, including digital products and a paid newsletter, Grants For Creators.

Having passive income helped me pad my savings and extend my maternity leave by a month.

Although passive income requires upfront effort, having income rolling in while you rest and recover is extremely helpful.

Looking for passive income ideas? Watch this video by Traveling With Kristin.

Tips To Plan For Maternity Leave

How to save for parental leave — *Meet our sweet boy, Baby K!*

Will maternity leave hurt your career?

With proper planning and preparation, maternity leave will not hurt your career or business.

Give your clients advanced notice of your leave of absence. Notify them of your return date and communicate any changes.

Work ahead of schedule (do your best) and invoice clients before departure. Alternatively, set up clients on retainer to generate recurring income.

Set your away message so all correspondents know when you are away and your return dates.

Don’t feel ashamed or insecure about asking for help. It takes a village to raise a child.

As you near the end of your pregnancy, avoid taking on new big projects. Maybe even fire those stressful clients or low-paying gigs.

Wrap up outstanding projects, outsource, and be flexible throughout the planning process.

Follow up with leads and past clients upon your return.

Lastly, adjusting to life with a baby takes time, so give yourself grace (a lot of it). You’ve got this!

Are you an expecting parent? How did you plan for maternity leave?