Calculate Personal Runway

A framework for assessing personal runway before making major career transitions, based on Shaan Puri's advice to employees considering career changes.

Key Financial Assessment Points

• Calculate monthly living expenses first
  • Example given: $4,000/month baseline
  • Use this to determine total runway needed

Runway Requirements

• Minimum recommended runway:
  • 6 months liquid savings
  • Additional 6-12 months in accessible backup funds
• Conservative recommendation (Sam Parr):
  • 24 months of runway
  • Approximately $100k in savings

Decision Framework

• Three key questions to ask yourself:
  1. "If I wasn't afraid of failing, which path would I pick?"
  2. "Do I believe I'll succeed if I put my mind to it?"
  3. "If yes to both above, what's stopping me?"

Strategic Considerations

• Don't wait unnecessarily
  • Waiting has a high opportunity cost
  • Be specific about what information you're trying to gather
  • Set clear learning objectives if choosing to wait

Path Options

1. Safe Path

   • Keep current clients/job
   • Maintain some free time
   • Collect more data for 6 months

2. All-in Path

   • Quit current commitments
   • Highest risk but highest potential
   • Choose if you have clear conviction

3. Hybrid Path (Not Recommended)

   • Taking on more clients/work
   • Loses free time
   • Prevents focus on new opportunities

The framework emphasizes having enough runway to make decisions from a position of security while not letting excessive caution prevent taking calculated risks.