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