Glossary
Monthly Runway
A plain-English explanation of Monthly Runway, why it matters in hiring, a concrete example, common misuse, related terms, and next steps.
Definition
The amount of time your monthly cash flow supports your lifestyle after essential expenses and targets.
Detailed Explanation
Runway cushion is calculated by subtracting rent, savings targets, and remittances from monthly base pay.
Why It Matters in Hiring
Crucial for evaluating relocate/remote offers to ensure they support your financial runway goals.
Concrete Example
An offer of $5k/mo leaves a $1.5k/mo cushion after rent ($2k) and savings/living expenses ($1.5k).
Common Misconception
A large salary does not guarantee runway; high local expenses can quickly deplete your cushion.
When It Does Not Apply
Personal budgeting; useful for relocation checks.
Related Glossary Terms
Model monthly runway cushion in the Calculator.
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