Keeping a roof overhead is an important concern
when your income drops. If you rank your bills in
order of priority, chances are housing is at or near
the top of the list.
When you are under the financial stress of reduced
or lost income, one of the biggest expenses is
housing. Housing expenses include mortgage or
rent payments, insurance, taxes, household
maintenance and repair, utility bills, furnishings,
and cleaning supplies.
When income drops, careful planning can help you…
When your income or personal situation changes,
review your insurance coverage. If your income
decreases because of a layoff, illness, disability,
divorce, or death of a breadwinner, you may find it
extremely difficult to pay insurance premiums. If
this happens, you should first determine your
minimum needs for insurance. Then, call or write
your agent to check into a different payment plan
that allows you to keep your coverage. Or,
investigate plans with lower premiums.
Insurance …
Sometimes unforeseen events in life challenge us. Regardless of the reason, you need to take charge during these challenging times.
SIZING UP YOUR FINANCIAL SITUATION
Sometimes unforeseen events in life challenge us. They may include unemployment, downsizing, a disability, natural disasters, divorce, or widowhood. Regardless of the reason, you need to take charge during these challenging times. When faced with reduced income or increased expenses, you need to develop a spending plan to help pay your bills. If your income …
Unexpected income changes are among the most
stressful events a person can experience.
Unemployment, a disaster, divorce, or the death of
someone you love can be personally devastating
and can trigger the same reactions.
Personal Crises Are Stressful
In a personal crisis, you may feel tense and angry.
You may have mood swings and find yourself
lashing out at others. Feelings of frustration can
lead to family arguments. You may feel depressed
and discouraged. These feelings may …
When your family income drops suddenly or
expenses unexpectedly increase, your first concern
may be how to pay your bills and meet your day-today
expenses. It is also important to look at your
total financial picture and determine which assets
you might use to meet family obligations.
Determining Your Net Worth
A net worth statement is a financial balance sheet.
It is a calculation of your assets (what you own)
minus your liabilities (what you owe). Preparing a
net …
When the family faces reduced income, take
immediate action to stop all excess spending.
Whether your situation is temporary or extended,
you need to get the most for your money.
Studies have found that many families do not
adjust their lifestyle for about six months after
their income is reduced. That six months of
ignoring the situation can bring disaster. When
you take charge of your financial situation
immediately, you are making a positive
contribution to your family’s well-being …
Sources of Stress
Take Care of Your Body
Try to eat a healthy and balanced diet.
Take time for an enjoyable physical activity to relieve stress.
Get enough sleep. We …
When you do not have enough money to cover your family’s basic living expenses and pay all your creditors, you face some difficult financial decisions.
When family income is reduced, your spending habits must change. The sooner you change, the more likely your financial problems can be lessened. Your family should be part of the decision-making process, since their cooperation is essential to carry out the plans.
When your bills exceed the money available …
Odd Jobs
Think about the type of skills or equipment you have that others may need. Can you change the oil in their car? Make a birthday cake? Clean their gutters?Consider that your time may be helpful to others if you have free time when they do not. You can find odd jobs in the classifieds section of local newspapers or web sites like Craig’s List.
Bartering
Trading goods or services with others may not yield cash, but it …
