Plain numbers you can act on. Severance, COBRA, ACA, runway, side income.

Guides in this section

1. 01
   Financial planning the first 30 days after a layoff →

   The first 30 days after a layoff are about order of operations, not perfection. This week: stop variable spending, file for unemployment, and list every account. This month: pick between COBRA and the ACA marketplace, and lock a new monthly burn number. This quarter: review tax withholding on severance and decide what to do about retirement contributions.

2. 02
   Health insurance options after a layoff: the full guide →

   There are five real paths after a layoff: COBRA, the ACA marketplace, a spouse's plan, a short-term plan, and Medicaid. COBRA is the same coverage at full cost. The ACA marketplace is often cheaper with a subsidy now that your income has dropped. A spouse's plan is usually the best option if it is available. Short-term plans are limited. Medicaid is the path for very low income. Run the numbers before the deadline, not after.

3. 03
   How severance is taxed (and what to do about it) →

   Severance is taxable income. Federal withholding is typically a flat 22 percent on amounts under one million dollars, but your actual federal tax owed depends on your full-year income. State withholding varies. FICA still applies. Your first paycheck after severance ends can feel small because withholding rates shift back to ordinary wage rates while severance leftovers settle. A short conversation with a CPA usually catches the issues a tax-prep app misses.

4. 04
   How to calculate your financial runway after a layoff →

   The equation is simple. Add liquid savings, severance after tax, and an honest estimate of unemployment benefits. Divide by your real monthly burn. The result is your runway in months. Most people get the variables wrong in three ways — they forget taxes on severance, they underestimate COBRA, and they use a fantasy budget instead of last month's actual spending.

5. 05
   Should you tap your 401(k) after a layoff →

   Almost always no. An early withdrawal triggers ordinary income tax plus a 10 percent federal penalty if you are under 59 and a half. Combined with state tax where applicable, the haircut typically lands between 30 and 40 percent of the amount withdrawn. The narrow cases where it makes sense involve medical bills, eviction, or no real alternative. A 401(k) loan is sometimes less damaging, but only if the plan still allows it.

6. 06
   Side income ideas while you're job searching →

   The side income worth doing during a job search is income in your existing field — consulting in your prior specialty or contract work in your industry. Gig work pays badly relative to the time it takes from the search. Most laid-off professionals come out ahead by protecting the search and adding two or three focused consulting engagements, rather than driving rideshare or chasing low-paid freelance platforms.

7. 07
   What to cut first when money gets tight after a layoff →

   Cut in this order: subscriptions, variable spending like dining and rideshares, fixed-flexible costs like groceries and utilities, then fixed costs as a last resort. Do not cut term life insurance, your therapist if you have one, or the social anchor that keeps you sane. The order matters because the easy cuts add up faster than the hard ones, and the search is harder if you take the floor out from under yourself.

8. 08
   When to stop applying and start consulting →

   The honest signals are financial and emotional. Financially: runway under 90 days, no offer pipeline, and a steady source of contract demand in your field. Emotionally: the search itself is the problem, not the lack of work. The right move is rarely a full pivot. A bridge phase — keeping a half-time search while building consulting volume — protects both options until the numbers tell you which one to commit to.