Build your quit fund. The mechanics.

The generic "3-6 months emergency fund" advice is noise. You don't need 3-6 months of salary. You need 6 months of actual burn. That includes COBRA.

This is not financial advice. This is the math that prevents panic. Here's how to calculate it and actually hit the target.

Step 1: Calculate real burn rate

Forget salary. What do you actually spend every month. Rent, utilities, food, transportation, subscriptions, phone. Total it.

Then add COBRA. Your employer subsidized your health insurance. COBRA is 100-120% of what they paid, plus 2% admin fee. Employer paid $600/month in premiums. COBRA costs $720-800/month. Budget $1,200-1,500/month if your family is on the plan.

Real number: $3,500 housing and living, plus $1,200 COBRA, equals $4,700 monthly burn.

Step 2: Work backward

When do you quit. Quit in 18 months: $28,200 spread over 18 months is $1,567/month. Quit in 12 months: $2,350/month. Quit in 6 months: $4,700/month.

Step 3: Reality check

Federal Reserve data: Americans save about 5% of income. On $75k/year, that's $312/month. To save $1,567/month on $75k, you need a 25% savings rate. Cut lifestyle hard. 4,700/month is a 75% savings rate. You're living on $1,500/month. Doable but brutal.

Truth: most people can't build a quit fund in 6 months unless they have second income, inheritance, or severe lifestyle cuts. 12-18 months is the realistic timeline.

Step 4: Account choice

High-yield savings account. This is where the fund lives. 4.5-5.0% APY in 2024. Ally, Marcus, American Express. Liquid. Safe. Earning. No volatility.

Not stocks. Not crypto. You need access on demand, no drawdowns. A market crash in week 4 of your job search is catastrophic.

Keep it separate from retirement. 401k and IRA have early withdrawal penalties. Your quit fund is 100% liquid access only.

HSA if you have high-deductible health plan. Triple tax advantage: deductible in, grows tax-free, tax-free for medical. Use it to pay COBRA. $4,150/year individual limit.

Step 5: Automate

Set up automatic transfers on payday. If you're saving $1,567/month, the money moves the same day you're paid. Automation kills friction and stops lifestyle inflation before it starts.

Track quarterly. Update your quit date as the balance climbs. Watching the number rise is real motivation.

Tactics that compound

Kill subscriptions. You pay for 3-5 services you don't use. Audit quarterly. That's $100-200/month recovered.

Side work. Freelance, overtime, seasonal gigs. 10 hours/month at $50/hour is $500/month. Over 18 months, $9,000 to your fund.

Liquidate. Sell unused furniture, clothes, electronics. One-time $2,000 is useful. Don't count on repeat money here.

Capture raises. Get a 3% raise. Put 100% of it into the quit fund for 12-18 months. $100-150/month painless.

Renegotiate rent. During lease renewal, negotiate lower. Or move to cheaper place. $200/month lower is $3,600 over 18 months.

The deadline

Not "I should save more." That fails. Instead: "I need $28,200 by June 1, 2027." Specific. Testable. Work backward to the required monthly savings. Is it realistic. If no, extend the timeline or cut burn rate.