A career disruption can make every decision feel urgent. A financial runway estimate helps you see which questions need attention first.
The Post-Layoff Financial Playbook manuscript uses a sequence: protect, rebuild, then make a deliberate longer-term choice. The early work is a clear inventory, not a rushed attempt to solve your entire future in one afternoon.
Start with what is available
List cash and other funds you can use without assuming an investment sale or retirement withdrawal. Distinguish money already available from money you expect but have not received.
Gather written information about severance, benefits, insurance, and any deadlines. Do not assume that one employer’s terms apply to another situation. A qualified professional may be needed to review specific legal or tax questions.
Separate the essential monthly gap
Identify the costs needed to keep the household functioning. Then subtract dependable income that will continue during the transition. The resulting gap gives a simple starting point for a cash-runway calculation.
Review irregular expenses separately. Insurance changes, medical costs, annual bills, and debt obligations can shorten a runway that looks comfortable on a monthly average.
Keep the estimate conservative and visible
The basic calculation is available cash divided by the monthly shortfall. A zero shortfall means modeled income covers modeled costs; it does not guarantee that every future need is covered.
Use the result to organize decisions. Which costs can be reduced? What has a deadline? How much flexibility is available for a job search, consulting test, or training program?
Make a small action list
- Gather benefit and severance documents.
- Write an essential-cost budget.
- Calculate a runway using funds already available.
- Identify near-term deadlines and professional questions.
- Choose one realistic income-rebuilding step.
Protecting clarity is part of protecting money. Try the cash-runway calculator, then revisit the estimate as information changes.
For retirement-account questions: IRS rollover guidance. Do not treat an account withdrawal as interchangeable with cash reserves.
