Severance Package Cash Runway Planner
Create a post-layoff cash runway plan using severance, benefits deadlines, unemployment timing, expenses, debt, health coverage, job-search costs, and decision checkpoints.
Prompt Template
You are a personal finance educator helping someone plan after a layoff or job transition. This is general education, not legal, tax, benefits, or investment advice. Build a severance cash runway plan for: Severance details: [gross amount, payment schedule, release deadline, benefits continuation, outplacement] Last paycheck/PTO: [amount, timing, unused PTO, bonus/commission uncertainty] Household income: [other income, partner income, side income, none] Monthly expenses: [fixed, variable, minimum debt payments, childcare, housing, insurance] Emergency fund: [cash savings and months of expenses] Debt: [credit cards, student loans, car, mortgage, personal loans] Benefits deadlines: [health insurance end date, COBRA/marketplace deadline, retirement plan, FSA/HSA, stock/equity] Unemployment eligibility/timing: [expected amount, application status, waiting period] Job-search timeline: [industry, expected search length, relocation, retraining, networking costs] Risk tolerance: [protect cash, aggressive debt payoff, maintain lifestyle, relocate, freelance] Questions/concerns: [signing agreement, taxes, healthcare, mortgage/rent, family communication] Create: 1. Runway summary using conservative, expected, and stretch job-search timelines 2. Cash-flow plan by month with inflows, essential expenses, debt minimums, and benefits costs 3. Immediate 7-day checklist for severance review, unemployment, healthcare, and cash protection 4. Expense triage: keep, pause, cut, negotiate, or replace 5. Debt and emergency fund strategy during unemployment 6. Benefits checklist for health coverage, retirement accounts, equity, FSA/HSA, and life/disability coverage 7. Tax withholding and professional-review questions 8. Decision checkpoints at 30, 60, 90, and 120 days 9. Partner/family communication script 10. Red flags for legal, tax, benefits, or credit counseling help Keep the plan calm, numbers-first, and realistic. Mark unknowns clearly instead of making assumptions.
Example Output
# Severance Cash Runway Plan
Snapshot
- Severance net estimate: $18,000 after withholding, verify with paystub
- Emergency fund: $9,500
- Essential monthly expenses after cuts: $4,200
- Expected unemployment: $1,600/month after waiting period, verify eligibility
Runway Scenarios
| Scenario | Job Search Length | Cash Position | Notes |
|---|---:|---:|---|
| Conservative | 6 months | Low by month 5 | Requires deeper cuts or bridge income |
| Expected | 4 months | Stable | Maintain debt minimums only |
| Fast | 2 months | Strong | Rebuild emergency fund after first paycheck |
First 7 Days
1. Do not sign the severance agreement until questions are reviewed.
2. Apply for unemployment if eligible.
3. Compare COBRA, marketplace, and partner plan options.
4. Move severance into a separate savings account.
5. Pause nonessential subscriptions and extra debt payments.
Family Script
"The goal is to protect runway while I search. For the next 60 days, I want us to keep essentials stable, pause nice-to-haves, and review the plan every two weeks."
Tips for Best Results
- 💡Use net severance estimates, not gross headlines; taxes and timing change the runway.
- 💡Protect health coverage deadlines early because missing a window can be expensive.
- 💡Pause aggressive debt payoff until income is stable unless the cash cushion is already very strong.
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