Job loss, redundancy, career change, or sabbatical all benefit from financial cushion. 'Career fund' (12-18 months of expenses, separate from emergency fund) enables freedom to act when career opportunities or pressures arise.
Why separate from emergency fund
Emergency fund is for unexpected expenses (medical, repairs, brief job loss). Career fund is for proactive career moves — leaving bad job, taking time to find right next role, sabbatical, retraining.
Build deliberately over 3-5 years. The freedom it provides — to leave bad jobs, take career risks, retire to consulting — is among the most valuable financial outcomes.