
In 2012, a few of my colleagues were laid off.
We were working on a project for one of the largest insurance companies in Canada, and the client decided to scale down their individual health insurance business. Overnight, a team that had spent years maintaining and updating the software for this product line — adding new features, compliance changes, and bug fixes — found itself redundant.
One of them had taken a home loan just six months earlier. His wife was expecting their first child. The fear on his face that day still stays with me — not just the fear of losing income, but the fear of uncertainty. What will I tell my family? How long will it take to get another job? What if the EMI bounces?
I remember telling him something that I myself had heard a few years before:
“There’s a chair for everyone.”
At that time, I didn’t realize how deeply that phrase would stick. It was something my cousin — about ten years older than me — had told me when I was struggling to find my first foothold in the software industry after completing my M.Tech. He said, “Don’t worry so much. There’s a chair for everyone. Yours is just not empty yet.”
Over the years, I’ve come to see how true that is — and how important it is to be financially ready while waiting for your chair.
The Chair and the Pink Slip
The chair is your rightful place in the professional world — a role that suits your skills, temperament, and time. The pink slip, though painful, is just a reminder that your current chair is temporary.
Between two chairs, there’s often a gap. Sometimes it’s a few weeks. Sometimes a few months. And in some cases, a year or more. That’s the gap where financial anxiety peaks — not because people suddenly forget their skills, but because money starts shrinking faster than confidence.
Money doesn’t buy you your next chair, but it buys you time — time to wait for the right one, without panic, without compromise.
The “3–6 Months” Emergency Fund is Just a Starting Point
Most personal finance advice says — keep 3–6 months of expenses as an emergency fund. It’s well-meaning, but not precise. Life and careers aren’t all built alike.
A fresh graduate who can land another job in a few weeks doesn’t need the same cushion as a senior professional who’s leading teams and drawing a large pay package. Similarly, a household with two earning members can survive longer on partial income compared to a single-earner family.
So instead of one-size-fits-all, here’s a more nuanced way to think about it.
The “Chair Cushion” Framework
Factor | Ideal Cushion | Reasoning |
---|---|---|
Career Experience | 0–5 years: 3–6 months of expenses 6+ years: 6–12 months of expenses |
Younger professionals usually find jobs faster and are more flexible with pay. Senior roles take longer to match experience and salary. |
Dual-Income Families | Reduce cushion by ~25% | One income can typically cover essentials, reducing full dependence on savings. |
Job Type (Common vs Niche) | Niche roles: 9–12 months Common roles: 3–6 months |
Niche jobs pay well but openings are fewer; generic skills may face more layoffs but rehiring is faster. |
Industry Stability | Stable sectors: 3–6 months Volatile/startup sectors: 6–12 months |
The re-employment window differs based on industry dynamics. |
Personal Risk Appetite | Add 1–2 months if risk-averse | Some people sleep better with a larger cushion — and that matters too. |
How to Build and Park Your Cushion
The emergency fund is not an investment for returns — it’s insurance against panic.
A few simple rules help:
- Start small, but start today.
Build it gradually — one month of expenses every quarter, for example. - Keep it accessible, but not tempting.
Liquid mutual funds or sweep-in FDs are ideal. They offer quick access and some return, without the temptation of easy swiping. - Don’t count it in your portfolio returns.
The emergency fund isn’t meant to “perform.” Its job is to protect. - Review once a year.
Update your number if your monthly expenses or job situation changes.
Why This Cushion Matters
The difference between people who handle layoffs calmly and those who spiral into panic is rarely just capability — it’s liquidity.
When you know your essentials are covered for the next 6–12 months, you make better decisions:
You don’t rush into the first low-paying job that comes your way.
You can take a career pause to upskill or shift direction.
You protect your long-term investments by not redeeming them in distress.
Financially, it’s a shield. Emotionally, it’s freedom.
The Real Wisdom
Back in 2012, my colleague did find another chair. It took him four months.
By then, he had already learned the hardest lesson — not to leave his financial safety to chance.
Today, whenever I talk to people facing job uncertainty, I tell them the same thing:
The pink slip isn’t the end of your career. It’s just the space between two chairs.
Your next chair will come — maybe better, maybe different — but while you wait, make sure you have the cushion to stand comfortably.
Because yes, there’s a chair for everyone.
But the wise ones are those who keep a cushion ready for when it disappears.
👉 If you’re unsure how much emergency fund you need or where to park it, book a quick call at WealthWisher.in — I’ll help you plan your financial cushion smartly.
👉 Every family deserves to handle life’s tough moments with confidence and support — and a sound financial plan makes that possible.
Book your free 1:1 financial planning session here → https://wealthwisher.in/book-a-call/
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