Laid Off After Making $100K? Here’s the Emergency Money Plan Experts Recommend
Being laid off can be a terrifying experience, regardless of your income. Even if you were earning a six-figure salary, you’re not immune to the perils faced by anyone who’s lost a regular paycheck. While you might have a larger cushion than someone earning less, you still need a clear emergency plan.
Developing that plan while you’re understandably upset is difficult enough. The challenge is often knowing where to start. MoneyLion spoke with experts who shared practical guidance for building a smart money management plan to protect your financial footing during a layoff.
1. Assess Your Current Situation — and Be Honest
Trent Von Ahsen, CFP, managing partner at Cedar Point Capital Partners, is accustomed to working with clients who earn a high salary. He’s seen them at their highs and their lows — and he’s made a surprising observation.
“One thing I frequently see in this cohort is poor liquidity management,” he said. “Whether it’s an underfunded or overfunded emergency fund, most folks struggle to feel confident about their current cash needs.”
For You: 5 Lucrative Side Hustles That Can Make You Six Figures
Learn More: Meet Your Complete Financial Toolkit. Budget, Build Credit and Track Your Money — All In One Place
The culprit? Lifestyle creep. According to Von Ahsen, higher earners often allow spending to rise alongside income, decreasing the amount they could be saving or investing.
“If they haven't done a good enough job planning around their reserves, one major life event — like a layoff — can expose this,” he said.
Before you make any decisions, you need a clear picture of what you actually have. That means knowing your cash balance, emergency savings, severance, and any income still coming in.
2. Take Care of Short-Term Expenses
Once you have taken a breath, turn your attention to the bills coming due in the next 30 to 90 days. Von Ahsen recommends matching these expenses to your immediate liquidity.
This step buys you time to plan for longer-term obligations. He also advises using this window to investigate repayment terms to see where you might find flexibility — even if that means contacting creditors directly. Many lenders offer hardship options, but you often have to ask.
3. Review Key Documents From Your Former Employer
If you haven't received all necessary paperwork from your former employer after being laid off, reach out now. In particular, confirm you have:
Severance agreements,
Stock option or equity documentation
Records of bonuses or commissions you’re owed
Information about continuing health benefits
“Be consistent in pursuit of understanding the bridge for any health benefits, such as COBRA for medical insurance, or other financial benefits due to you,” Von Ahsen said.
Review these documents sooner rather than later. Some severance packages come with deadlines, and your stock options may expire shortly after termination. You might also face a strict window for making your benefit continuation decisions.
4. Calculate Your Burn Rate and Cut Strategically
For Julien Brault, founder of MooseMoney, one of the smartest moves high earners can make after a job loss is calculating their burn rate. People are often surprised by how much cash they burn just to maintain their baseline lifestyle.
If that’s you, it’s time to adjust common expenses.
“Prioritize essentials first — housing, utilities, food, insurance and minimum debt payments,” Brault said. “Everything else can be paused or downgraded.”
“Everything else” includes nonessential expenses like subscription services, dining out and travel. Brault acknowledges that cutting these creature comforts can involve a grieving process.
“It's emotionally hard and requires accepting that some comforts were tied to income and need to go for now,” he said. “Even a 20% to 30% reduction in burn can make a difference.”
5. Don’t Assume You’ll Get Another Job Right Away
You know you’re talented and would be an asset to a new company. But the job market is tough. That’s why Brault encourages getting serious about cutting unnecessary expenses — you can’t assume you’ll land a new role quickly.
“The biggest mistake is that many high earners assume they'll find another role quickly and don’t make the necessary adjustments or pause unnecessary spending,” he said. “The emergency runway for high earners is closer to three months unless they actively reduce expenses or have significant emergency savings.”
In other words, planning conservatively now can prevent far more painful decisions later.
The Bottom Line
A job loss can be emotionally and financially destabilizing at any income level. It’s not a reflection of your talent or professional worth — but it does require embracing an emergency money plan until you find your next role.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
More From MoneyLion: