I always assumed severance was at least a couple months, but I just saw people walked out with less than two weeks. It made me realize how little cushion there is if things go south. Honestly scares the crap out of me. What do you do to protect yourself from scenarios like this?

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Never depend on severance - in this market you need to have a 3-6 month emergency fund with levers in mind on how to access more cash (i.e., brokerage, selling assets, etc.) should you be out of a job for longer.

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To protect myself, I follow Dave Ramsey’s advice of keeping a 3-6 emergency fund in savings

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This isn’t something you need to guess at… if you are entitled to a severance payout (and that’s a pretty big if), the amount and all relevant details and stipulations will be laid out and signed off on by you and your new employer upon your hiring with the rest of your benefit and employment contracts.

In reality, most people count themselves lucky if their contract includes a two week severance payment. The operating assumption for the majority is that they will not have any severance payment included in their employment contracts at all- a months-long severance is rather unheard of… and most certainly not the norm or general expectation.

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For most Americans, severance is totally at the whim of the employer, so unless it is in writing, don't plan on receiving anything.
As SA1 mentioned, build up an emergency fund.

helpful

The only guaranteed severance is whatever notice is in your contract. Not sure what your consulting firm is, but typically smaller, more selective firms tend to treat those laid off better (a happy alumn is a future client). Firms with lower fees like big4, ACN and the tech implementation firms are stingy and care less about keeping in good terms with "involuntary alumni". I am now at a bank and a coworker with about 1 year seniority got laid off for performance, and he got 4 months + a lump sum for healthcare

Our severance policy is only one pay period/2 weeks. :(

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