In the last few years, my family has endured several facets of income loss. By God’s grace, we’ve never missed a major payment or a meal. However, income loss through voluntary or involuntary means is no picnic.
The federal government sequestration, government shut down, and most recent recession brings to mind how quickly outside forces can impact one’s bottom line. It might be easy to disconnect across the board budget cuts from individual families with bills to pay. Whether you must endure income loss because of organizational belt tightening or job loss of your own choosing, consider the following tips to survive the transition.
1. Do Not Stress. Yes, this is easier said than done. Implement the following tips to regain a sense of control and minimize the stress associated with income loss or reduction.
2. Revise Your Budget. Adjust your budget to reflect any impending changes in income.
3. Prioritize Necessities. Ensure that your budget covers housing, utilities, transportation and food – in that order. Anything else should be managed with left over funds or postponed until you can better handle additional expenses.
4. Review Our Book. We’ve written a FREE book, Give Yourself a Raise in 21 Days, with common sense tips to save money on everyday expenses. We help you find ways to cut back without a major impact to your current lifestyle.
5. Adjust Your Debt Elimination Plan. With an income loss or reduction, you may want to press pause on any debt elimination plans. This should just be a temporary fix until you recover any lost income.
6. Supplement Your Income. Our book provides ideas to create multiple streams of income. You may have additional time to employ skill and bring in additional funds.
7. Look For New Opportunities. This setback may just be the opportunity you need to forge a new path.
8. Seek Help. Avoid the temptation to isolate yourself. Research resources that are available to people in your situation. Take advantage of any offers of help.
9. Evaluate Needs vs. Wants. Ensure that expenses are necessities and re-evaluate luxury expenses. Belt tightening is in order. While sacrifices may be unpleasant, you can look for ways to do more with less.
10. Enjoy the Moment. Look for ways to celebrate your many blessings.
Let us know if you have any more survival tips.
The following articles are additional help to pursue debt free living.