If you get fired today, how many months of runway you have?
To make it simple, easy to liquid net worth (cash in bank, mf, stock, own house) - loans/debt divided by current monthly expense.
Eg. my monthly expense is 1L and I have 7.5L in savings+stocks, so I have 7.5 months of runway.
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Mutual fund, stocks, house are not considered as runway. It should be plain cash lying in your bank and FDs.
About 2 yrs give or take. I live frugally at the moment, so if I really tried I could probably stretch it to 4
Mutual funds shouldn’t be considered in runway as the value can fluctuate quite a bit in case the market goes for a toss, for equity mutual funds at least.
I would rather suggest keeping the emergency fund (runway) in safer instruments
It’s depressing to see that peoples can live without a job for 3 years, 5 years, lifetime whereas I can’t survive more than 6 months. Something is very wrong with my career choices. 🥲
Damn. This is an eyeopener. While I can last 60+ months, when seem from yrs perspective, it's just 5+ yrs🥹😓.
Could retire and not do anything will be fine