In September, the private sector in the US shed 32,000 jobs, highlighting the importance of understanding your “burn rate” – how quickly you spend your cash reserves before becoming profitable. A burn rate is different from an emergency fund, as it measures monthly spending, not unforeseen events. To slow your burn rate, cut back on unnecessary expenses and consider pausing financial goals. Having an emergency fund is crucial, as many Americans struggle to cover even a $400 emergency expense. Without one, you may have to rely on credit cards or loans, accumulating more debt. Experts recommend having three to six months’ worth of living expenses in an emergency fund, set aside in a dedicated account that earns interest. Consider slowing your burn rate, even if you have an emergency fund, to make it stretch further during tough times.

Read more at Yahoo Finance: Laid off? Slowing your ‘burn rate’ can help, but won’t keep you afloat for long. Here’s how to extend your survivability