Recovering After a Disaster Using The Family Financial Toolkit


 

Putting Your Financial Recovery Puzzle Together After a Disaster

A natural disaster can strike anywhere, any time. Natural disasters often leave in their wake damage and destruction that have long-term impacts on the financial well-being of survivors. If you or a loved one has been affected by a natural disaster, it’s important to know that financial recovery takes time. There are no easy fixes and no guarantees.

This Recovery After Disaster: The Family Financial Toolkit discusses strategies and provides tools …

How Does Losing a Job Affect Your Income Taxes?

There are a number of ways that income taxes can be affected by the loss of a job. Below are descriptions of three common situations and information from the IRS about how they affect federal income taxes:

  1. You get a new job but earn less than you did before: If you had a high income previously, where certain tax deductions were limited, you may no longer be subject to income-based phase-outs. If your income was more moderate before and is

How are health and personal finances related?

Health and personal finances are related in many ways. Perhaps the simplest association is the high cost of unhealthy habits. Kick a $5-a-day smoking habit, for example, and you can save $1,825 annually. Invest this amount with an 8% annual return over 25 years and you’d accumulate more than $130,000. One study found that the typical nonsmokers’ net worth is roughly 50% higher than light smokers and roughly twice the level of heavy smokers.

With respect to another health problem, …

I recently lost my job. To adjust, what should I consider?

Unexpected loss of income can be one of the most stressful events in a lifetime. Here are some things to consider.

Reduce Expenses 
A job loss could potentially last for many months, so it is wise to track spending and tighten the family budget. Cooperative Extension offices in many states have information about living on a reduced income.

Apply for Unemployment Insurance
Each state has different eligibility requirements for unemployment insurance and benefits. Basically, if you’ve become unemployed through no …

I recently got laid off. How do I stay on top of things until I find employment?

 

  • Find out if you are eligible for unemployment and begin the process as soon as possible.
  • Contact your creditors as soon as you know that you’ll have a problem paying bills. Take the offensive. Call your lenders before they call you.
  • When you call a creditor, have the following information ready: account number, reasons why you would like to renegotiate your payment, and how much you propose to pay until you get back on your feet.
  • Keep the lines of

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

Debt Management in Tough Times

Debt management involves developing one or more strategies to help a debtor get that debt under control.

 

Should you shop for a lower interest rate on your debt?

• This can be a good option, if it substantially reduces your monthly payments and the refinancing is not too costly. Inquire whether other higher cost debts can be rolled into the lower cost loan.

What if you can’t pay your bills

• Prioritize your debt. Keeping a roof over your head …

What are Your Resources?

When the money gets tight, it is important to know what resources you have. Resources can be described as assets (time, money, energy), materials, or capital (other funds) which can be used to accomplish your goal.

 

What are your financial resources?

• Make a list of all of your assets, or everything that you own.

• Distinguish between financial assets (bank accounts, investments, retirement accounts, etc.) and physical assets such as cars, home, or personal possessions.

• Which financial assets …

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 …