Financial Glossary

Plain-English definitions of the layoff, severance, and personal finance terms that matter most when your income is at risk. Each entry explains how the term connects to your financial runway — and links directly to the calculator.

Burn Rate Your total monthly expenses — the number that divides your savings into runway months.

COBRA Insurance Continuation coverage that lets you keep employer health insurance after a job loss — at full premium cost.

Emergency Fund A dedicated cash reserve — typically 3–6 months of expenses — held to survive income disruption.

Financial Runway The number of months you can sustain your lifestyle on savings alone, with zero income.

Furlough A mandatory temporary leave — unpaid or partially paid — where you retain your job but stop working.

Garden Leave A paid notice period where a departing employee stays home while still receiving salary and benefits.

Involuntary Termination An employer-initiated end of employment — layoff, reduction in force, or firing — that starts your runway clock.

Severance Pay A one-time payment from an employer upon involuntary termination that extends your runway fund.

Unemployment Insurance A federal-state program that replaces a portion of lost wages after an involuntary job loss.

WARN Act A federal law requiring 60 days notice before mass layoffs — or pay in lieu — at large employers.