PocketProofThe best time to figure out your job-loss plan is before you need one — decisions made calmly in advance are better than decisions made under pressure in week one. Two things matter most: knowing exactly how long your money actually lasts, and knowing which first steps are genuinely time-sensitive versus which ones can wait.
Your financial runway
"Runway" is simply how many months your current savings covers your essential expenses, accounting for any other income that would continue (unemployment benefits, severance, a partner's income). Enter your numbers to see yours.
Financial runway calculator
Defaults match the case study below.
Not sure your fund is the right size to begin with? See our personalized emergency fund target calculator.
What to do first
A few answers change what's actually urgent for you. Answer honestly to see your priority order.
What should I do first?
Not a calculator — this walks through the same triage a financial counselor would ask about.
Is a mortgage, rent, or car payment due in the next two weeks that you're not sure you can cover?
Does your health insurance come through the job that just ended, for you or a dependent?
Have you already filed for unemployment benefits?
Hardship forbearance and modified payment plans are far easier to get if you contact the lender or landlord before missing a payment — a missed payment often removes options that a proactive call would have kept open. Ask specifically about hardship programs by name.
You typically have 60 days to elect COBRA, but it's rarely the cheapest option — a marketplace plan, especially with a subsidy triggered by your now-lower income, is often significantly less expensive for the same gap. Compare both before defaulting to COBRA just because the paperwork arrives first.
In most states, benefits are calculated from when you file, not your last day of work — delaying the filing can mean permanently losing weeks of benefits rather than just delaying them. File as soon as you're eligible, even while still sorting out the rest of your plan.
With the time-sensitive calls made, shift to the expense priority order below — cut discretionary spending first, and don't touch retirement accounts or take on high-interest debt until the cheaper options are exhausted.
The priority order for cutting expenses
- Discretionary spending first. Subscriptions, dining out, non-essential shopping — cut these fully and immediately. See our guide to cutting monthly expenses for the fastest wins.
- Pause, don't cancel, what you can restart later. Gym memberships and some subscriptions allow a pause instead of a full cancellation — cheaper to resume than to re-sign-up for later.
- Call every lender proactively, even ones not yet due. Many offer hardship programs — reduced payments, temporary interest pauses — that are only available if you ask before falling behind.
- Only then consider pausing retirement contributions. This should come after cutting discretionary spending, not before — retirement contributions are easier to resume than a 401(k) loan or early withdrawal is to undo.
- Avoid new high-interest debt if at all possible. A credit card covering a true gap is far better than missing a mortgage payment, but it's a last resort, not a first one — exhaust the cheaper options above first.
If a gap does mean taking on some debt to get through it, our debt snowball vs. avalanche comparison covers paying it back down once income resumes, and our realist's payoff plan worksheet is built for exactly this kind of unplanned setback — not for the version of you that never had one.
Once things stabilize, rebuilding the fund itself uses the same tools as building it the first time — see our guide to saving your first $1,000 quickly and our automation checklist to make sure it happens without relying on willpower alone.
