When Your Income Drops

Losing a job or otherwise experiencing a loss of income is a challenge in the best of times. In the current economy, it is essential to MAP OUT a plan to get back on your feet again. The PowerPoint presentation, fact sheets, and activities below are designed to help you MAP OUT your plan.

When Your Income Drops

Freeing Up Money from Services

Worried man and woman.

Utility Budget Plans

You can work with your service provider so that your monthly bill is based on an average of the previous year’s monthly bills. This is usually called “level billing.”

However, if you exceed the budgeted amount, you could end up owing money at the end of the current year or your fixed payment will increase next year. In some cases, a utility company may make an adjustment during the year, if useage is greatly exceeding the estimated …

What is Your Net Worth?

A net worth statement, sometimes called a financial statement, measures wealth or how much we are worth – at one point in time.

 

calculator

 

What are your assets? Assets include cash and other items of value that can be converted to cash. Some assets are more difficult than others to convert to cash. Be careful not to overvalue personal belongings, such as televisions and furniture as these often lose value over time.

 

• How much do you have in cash or …

Things You Can Do When Money Is Short

THINGS YOU CAN DO WHEN MONEY IS SHORT

older couple biking


  • Think about things you have been spending money on that you can do without – movies,magazines, music, gas, sodas, etc.
  • Think about ways to earn money – baby-sitting, pet sitting, mowing lawns, delivering papers, etc.
  • Think about ways to stretch the money your family does have – sew or mend clothing,garden, baby-sit for younger brothers and sisters, prepare meals, etc.
  • Turn off the lights, television, stereo, and other small appliances.
  • Take shorter

Keeping a Roof Overhead

KEEPING A ROOF OVERHEAD

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 …

Controlling Spending

CONTROLLING SPENDING

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 …

Stretching Your Food Dollar

STRETCHING YOUR FOOD DOLLAR

Grocery shopping can be a real challenge,
especially if you are on a limited budget. However,
food is a flexible budget expense which can be
reduced when money is tight. By planning ahead
and managing your money wisely, you can still serve
meals which are appetizing, easily prepared, and
nutritious.

shopping

Food Shopping Starts at Home

Most of us can change our food spending habits in
ways that make each food dollar go further and still
improve …

Sizing Up Your Financial Situation

Image:Woman with bills feature.jpgSometimes 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 …

Making the Most of What You Have

MAKING THE MOST OF WHAT YOU HAVE

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.

man at table

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 …

Managing Stress in Financial Crisis

Sources of Stress

  • Prices rise but your income stays the same
  • Cut‐backs, layoffs, or other restructuring creates job instability
  • You feel frustration with family members’ spending or debt
  • You have medical, automobile or household expenses that pile up
  • An unexpected event or crisis creates money problems for the family (illness, death, divorce, etc.)

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 …