In early August, 54-year-old Mary Kane from Minnesota resigned from her job after six months of feeling unmotivated. Previously, she led a marketing team at her company. Kane had no financial concerns, having saved about half her income for many years, enough to cover her living expenses for 12 months. She referred to this money as her "burnout fund."

Unlike an emergency fund used for job loss, illness, or unforeseen events, this fund allows employees to proactively take breaks, recover, or transition between jobs.

Julie Beckham, who oversees financial education at Rockland Trust bank in the US, stated that this is not a new savings method but rather a fund named for its specific purpose. The concept has gained traction amid rising living costs, a weakening job market, and artificial intelligence (AI) accelerating work paces. Consequently, many workers face pressure to complete tasks while also fearing replacement.

Tasmin Lofthouse. Photo: Business Insider

Burnout can occur at all levels. A survey by the National Alliance on Mental Illness and Ipsos found that 53% of individuals experience work-related burnout. Recently, many technology company leaders and founders have also stepped down due to work pressure and health issues.

The US labor market shed 23,000 jobs in July. The Bureau of Labor Statistics also revised down nearly 100,000 new jobs in the two preceding months compared to initial figures.

Tasmin Lofthouse, 33 years old, working in marketing, first experienced burnout in 2018. Without savings, she had to move to a new job immediately after leaving her previous one. "I had no energy left; I didn't want to do anything, meet anyone, or talk to friends," Lofthouse recounted.

In 2020, she opened a marketing consulting firm, but the previous situation recurred. Unwilling to let finances dictate her rest again, Lofthouse began saving in 2022 and established a separate account in 2024. Every few months, she transfers a portion of her company's profits into the fund.

The account currently holds about USD 65,000, enough to sustain her company for one year. Lofthouse also maintains an emergency fund equivalent to three months of living expenses. "People should view burnout as a foreseeable risk to prepare for financially, rather than waiting until it happens," she advised.

For 54-year-old Stacy North, savings also facilitated a job change. North established her fund in 2022 when she noticed her mental health declining. After selling her apartment and buying a new home, she had USD 80,000 in cash. Instead of using it to pay down her mortgage, she deposited this amount into a savings account.

At the time, North was a business manager at a fruit shipping company in Maryland. She resigned in 1/2025 because her condition had not improved. The fund helped North cover her living expenses until she launched a home organization service in early 2026. To date, she has used about USD 35,000.

Jon Zetlmaier, director of financial advisory firm Zetlmaier Wealth Management in Seattle, US, stated that the fund's size depends on the anticipated break duration. Someone planning to pause work for three months might need enough money to cover six to 12 months of expenses for recovery and to explore new directions.

Investment management company Vanguard notes a growing number of Americans allocating funds for career breaks or planned changes. However, many remain unprepared for periods of income loss due to burnout.

While a contingency fund provides the means for rest, it does not resolve workplace pressures. Beckham suggested that the necessity for workers to save for this risk reflects the burden of earning a living on mental health.

By Ngoc Ngan

(Source: Business Insider)