// Runway
Build a runway you can update.
Runway is not one number. It changes with spending, severance timing, taxes, benefits, and the date income resumes. A useful view shows the assumptions.
01
Define the starting balance
List cash that is genuinely available, then separate money already committed to taxes, near term bills, or another purpose. Retirement accounts and unvested equity are not the same as available cash.
Add known inflows by date: final pay, severance, paid time off, benefits reimbursements, and any reliable household income.
02
Use more than one spending case
Build a core monthly number for housing, food, insurance, health care, debt, and required family support. Keep flexible spending visible rather than burying it in an average.
Use at least three scenarios. A base case, a lower spending case, and a longer search or build case show which assumptions matter most.
03
Add the decisions that change the curve
Put large one time decisions on the same calendar. Health premiums, option exercise costs, moving costs, estimated taxes, and a new business expense can change the curve quickly.
Keep a separate tax reserve where practical. A larger bank balance can be misleading when part of it may already belong to a future tax payment.
04
Questions behind the number
A runway view is an illustration built from assumptions, not a prediction. Update it as real numbers arrive.
- What cash is available today?
- What amount is already reserved?
- Which inflows are certain and on what dates?
- What is the core monthly spend?
- Which costs change after benefits end?
- What decision would cause the plan to be revisited?
Primary sources