How long could your money last after a job loss?

Start with accessible money

Use savings you could draw without breaking another obligation. Add the net severance amount only when its timing and tax treatment are understood. Keep tax reserves, protected funds and money committed to near-term bills outside the available balance.

If investments are part of the emergency plan, run a second case without them. That shows how long cash lasts before market conditions or account rules become part of the decision.

Turn benefits and temporary work into monthly income

Confirmed unemployment benefits, a partner’s contribution or reliable freelance work can be entered as monthly income. Avoid counting income that has not been approved or work that has not begun. A separate optimistic case can include it without making the baseline depend on it.

Rebuild monthly spending for the new situation

Start with housing, food, utilities, insurance, transport, debt minimums and healthcare. If employment paid for health insurance, include the replacement cost. Add costs created by the job search itself, such as travel, childcare, equipment or training.

Then make a second version with cuts you could sustain for several months. Removing every flexible expense may lengthen the number while making the plan unrealistic.

Keep a re-employment buffer

Do not treat the month the balance reaches zero as the target date for finding work. Hiring can slip, the first payday can arrive weeks after starting, and a new role can bring upfront costs. Decide on a minimum balance you will not spend, subtract it from savings, and calculate runway from what remains.

Run three cases

A practical set is: current spending with no new income; essential spending with confirmed benefits; and essential spending with a modest amount of temporary work. The difference between them reveals which action changes the deadline most.

This guide is general planning information, not advice about benefits, tax or withdrawing from a particular account. Those rules depend on where you live and what you hold.