Why Deferring Major Purchases After Being Laid Off Can Help You Secure the Best Job Possible

Here's the thing—when you're in the midst of the chaos of a layoff, the way you manage your finances can directly impact how quickly and effectively you can move forward and land your next job.

One of the most crucial financial strategies during this time is deferring major purchases. You might be asking, 'Why should I hold off on buying that new car, or upgrading my living situation, or getting the latest tech?' Well, in this article, we’re going to dive into exactly why this is so important, and how it can help you focus on securing the best job possible.

First, let’s go into what it really means to be laid off. Unlike being fired for cause, layoffs happen due to factors outside of your control—economic downturns, changes in business strategy, or company-wide cutbacks. Being laid off can bring a mix of emotions: relief, fear, confusion, and even anger. And while you might be tempted to dive into the next chapter of your life and start spending on things you feel you 'deserve' after a tough situation, it’s crucial to take a step back.

Because while you may not be thinking about it right now, securing a new job can take time. On average, it takes about 5 to 6 months to land a new role, but for some industries, it could be even longer. That means during this transition, your savings will need to carry you through, especially if you’re without a paycheck for an extended period.

Now, why deferring major purchases is essential during this time? Major purchases include things like buying a new car, upgrading your home, making expensive investments in hobbies, or even splurging on vacations. Sure, it might feel tempting, especially if you’re feeling the need for a ‘fresh start,’ but making these types of purchases can quickly deplete your savings—and we want you to be financially prepared for whatever comes next.

Think about it this way: If you don’t have a steady income coming in, you’re relying on your savings and your severance package, if applicable. Without that buffer, any major purchase you make could mean fewer resources to cover essentials like rent, utilities, food, or—most importantly—health insurance while you’re in between jobs.

By deferring big expenses, you’re allowing yourself the breathing room to focus on what matters most—finding the best possible job opportunity. The less you spend now, the less pressure you’ll feel to rush into any job simply to make ends meet.

Let’s dive a bit deeper into how deferring major purchases supports your job search. When you’re looking for a new position, you want to be in the best mental and emotional state possible. If you’re bogged down with financial stress because of a big purchase, it can affect your confidence and focus during interviews.

Think about how much better you’d feel if you knew you had a financial cushion to support you as you search for the right job—rather than jumping into a role that’s just okay because you need the paycheck. By holding off on those purchases, you give yourself more time to evaluate job offers based on what will truly make you happy, rather than what’s only going to keep you afloat.

And that’s the thing: taking your time to find the right job can often lead to better financial opportunities in the long run. Maybe you’ll find a role with better pay, better benefits, and more job satisfaction. This is especially important for people in high-demand industries, where taking the time to find a match for your skills and career goals can really pay off.

Now that we understand why deferring purchases is important, let’s talk about a few practical financial tips to help you stay on track during your job search.

Also, here’s a super wise tip, so pay special attention here: Put some or all of your spare funds in a money market fund or account. Often, these pay high rates of return, similar to CD’s but you usually don’t have to lock up the money for a long period of time. You can access it immediately and have the funds back in your bank checking the next day. Money-market funds are priced at $1 continuously so there is usually absolutely no volatility.

This is a great place for a lump sum severance payment also, just saying.

I spoke to a client the other day who put money into a CD, not knowing about the Money-market option. He locked it up for 6 months. He could have had access to it immediately. And the money market fund paid more than the CD.

Here’s something important that I want to touch on—deferring purchases can also have a huge psychological benefit. It’s easy to feel like buying something new will help you 'move on' or 'feel better' after a layoff, but the truth is, purchasing things won’t fill the void of uncertainty that comes with being out of work.

In fact, the opposite is often true. When we hold off on making big purchases, it forces us to take stock of our priorities. We start to see what really matters, and that can help you focus your energy on your job search and career goals, rather than distractions that won’t help you in the long run.

So, how do you stay focused on securing that best job without falling into the trap of unnecessary spending? It comes down to structure. Set daily or weekly goals for your job search—apply to a certain number of jobs, network with a specific number of people, and follow up on interviews. This can help you stay motivated and engaged.

And remember, the more strategic and patient you are in your job search, the more likely you are to find a role that truly suits your needs. And when you land that job, you’ll have the financial stability to make the best decisions moving forward, whether that’s upgrading your living situation or making investments in your future.

Let’s summarize the key points. Being laid off can be a stressful time, but with the right financial strategy, you can make the transition smoother. By deferring major purchases, you’re ensuring that your finances stay intact while you focus on securing the best job for your future.

Take a deep breath, take care of your financial health, and give yourself the time and space you need to land a great job. You’re investing in your future by being patient today.

Thank you so much for reading today’s article of Life By Design. If you find this information helpful, be sure to share it with anyone who might benefit from it.

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