After being laid off, spending is put on hold.
Before going on budget lockdown, I would recommend creating a job search fund.
This fund will serve 2 purposes.
First, the money will remove guilt for investments. Things like a LinkedIn subscription.
Coffee purchases during networking meetings. Paid resume reviews or interview support.
On the flip side, the second purpose is to put a cap on your spending.
Do you really need a $3500 certification?
While the answers to the larger expenses might be yes, the fund will make you think twice.
How Big Should the Fund Be?
This is not a “one size fits all” question.
Depending on your pre-layoff salary and size of severance, not all funds are created equal.
A good ballpark could be 2-3% of your prior annual salary.
For someone making $100,000, that would be $2,000 – $3,000.
If you consider you were likely to put 5-10% of that salary into investments, 2-3% feels right.
What Might You Spend the Money On?
This will also be an individual question. Here are a few of my recommendations:
LinkedIn Premium Career – For $29.99 a month, you get a lot of features including LinkedIn Learning. Instead of paying for courses to advance knowledge, leverage the free resources.
Resume Writing – I wouldn’t do this one right away, but after you know your target roles and industry, having a professional look at your resume could make a big difference.
Networking Fund – Meeting with people in-person vs. online can be a good way to connect and get out of the house. However, this isn’t free. Setting aside a couple hundred dollars will remove guilt.
Career Coach – Exploring individual or group coaching can help you stay disciplined and accountable to your job search initiatives. Here is a link to understand if coaching is right for you, another link for what to consider, and a final link on types of coaching and pricing ranges.
My Services
I would be remiss if I didn’t mention that I have job loss workbooks.
And 1on1 coaching that goes beyond resumes and applications.
We get underneath the confidence, emotional, and financial challenges you are facing.
Free 30-minute sessions can be booked here.
Your Turn
Have you considered creating a job search fund?
What spending would be a priority for you on the search?
Is there an important expense missing from the list?