If you were to prep for a layoff, how big of an emergency fund would you need to build?
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Depends on your lifestyle and current debt. I'd say at least 3 months but ideally you'll want a year or more!
2 years.
6moths cash, 12. Moths liquid assets.
The stock market could crash 30% tomorrow, and your house 20% by Christmas.
Minimum 1 year at current standard of living
Depends on your level and what you are making - A VP - 12 months. I have enough for 3 years - and that is living at the same level. Don't want to burn all your cash, but it gives you options to think about and reduces stress level. Always have options when this happens, so you are not operating in fear! I learned this lesson after being laid off years ago. Nothing is forever... Change is inevitable in Tech.
Having just a month cushion is more than most. Once I was there, I worked on 3 months. What I have seen over my career is that the few times I was unemployed it was about a 2-3 month search so ideally 4-5 months, maybe 6 depending on what you have been doing. Get rid of all but two credit cards (not everyone takes amex), or one and your debit card. When you have been absolutely broke and can't even afford to pay attention you figure it out and you make it a point to change a few habits.
Plan for a year like stated above on a bare minimum budget. No major expenditures.
Also dont even plan on getting the severance because working here you might lose your mind dealing with all the bullsh-t and quit before making it to a layoff with severance package or a new job offer. In todays market you cant be sure to find a new role in 6 months either.
Personally i planned for 2 to 3 years , with an adjustment in lifestyle.
In this job market, calculate what you need for 12 months on a reduced monthly budget. Calculate what your severance will be and fill that gap. Businesses are just now seeing what can be eliminated with AI. So many positions can be eliminated and not replaced. Operations, Finance, QA, coding, etc are all areas that are seeing drastic changes to AI. It is unfotunately what will happen. Level 1 and Level 2 support are being handled by chatbots. Even at the professional levels. When we need support, it is the chatbot navigation until you finally prove you need a real technical team involved on resolving the defect.
bare min 6 months
1yr to be safer
2 years
Do not worry about the disease,work in Cisco can not help you avoid it.
How old are you? If you're young with no family to support and friends who might lend you a couch to stay on 3-6 months is fine. If you're old with a spouse and kids and have significant savings I'd be keeping quite a bit more in insured investments. In 1987 the Dow had a 22% drop in a day and in 2008 around 54% over a year and a half. There is a balance of keeping cash while missing growth and halving your biggest investments and having to draw down at twice the rate you were planning on.
1 year
5 years of savings to get through down economy, like the current one.
I had 10 years worth then I got cancer.
You can't plan for everything.
I agree with @mui - about 6 months
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I have 40 years
General rule of thumb is 4-6 months. And make sure you have a budget that tracks every penny.