Layed off with no income? Calculate your personal runway.

I recently met with someone who thought we’d be talking about her job search. Instead, the conversation shifted to something even more pressing: personal finances.

Being unemployed with no income can be scary. She even wondered if moving to cheaper housing might be necessary. This kind of situation can feel overwhelming — you don't know how severe things really are and what options you have to get through it.

The first thing I suggested came from my days running a startup: calculate your personal runway.

👉 Runway = total cash and liquid assets ÷ average monthly spending (with a buffer).
👉 The result = how many months you can survive before the money runs out.

Cash and assets might include savings, brokerage accounts, even Roth IRAs. Yes, dipping into these reduces your future earnings potential — but tough times call for tough measures.

The simple act of putting a number to your runway is powerful. It takes the fear out of the unknown, helps manage irrational emotions, and puts reality in front of you.

Here’s how you can do it yourself in a few steps:

1. Add up your liquid assets: cash, savings, brokerage accounts, anything you can reasonably access.
2. Look at your last 6 months of expenses, add a small buffer for unexpected costs, and average them.
3. Divide the first number by the second. That’s your runway in months.

Once you know your number, you can shift your mindset from panic to planning. For example:

• 6+ months of runway: You can afford to be selective and focus on the right long-term role. You might even be better off taking a week or two to relax and destress before jumping into your search.
• 3–5 months: You may need to balance applying to stretch jobs with solid “bridge” options that get income flowing. Look for contract or part-time gigs that might be a stepping stone to that long-term fit elsewhere.
• Less than 3 months: Your top priority might be short-term cash flow by finding low-barrier ways to make an income. Consider even applying to local retail or service jobs in order to keep you afloat.

This simple exercise helped me navigate my own times of income uncertainty. Back when I was bootstrapping my startup, I thought about company runway a lot — but I later on realized I needed to calculate my own runway too. When I finally put the number down on paper, it gave me the clarity I needed to make better decisions. It also gave me a firm deadline when I could no longer afford to run the company anymore without VC funding.

Sometimes the first step isn’t finding that next job, but instead finding some clarity on where you stand today.

Treat yourself like a business: know your runway, and you’ll make stronger decisions from a place of clarity, not fear.