I would say that most of us have experienced
money problems at some point in our lives. This
could have been caused by the loss of a job,
injury or illness, over spending, and the list
goes on and on.
Right now in the US there are hundreds of companies
downsizing or going out of business. In some cases
this is due to the economy. In others we have
seen cases of very poor management and down right
fraud. No matter what the reason, people have
lost their jobs and their income.
In a lot of cases this can't be prevented. If
we can't prevent the hard times, then just what
can we do? Prepare! Prepare! Prepare!
I know you have all probably heard that you should
have at least six months income set aside in case
you lose your income. Yeah, right! With things
as expensive as they are today, you are lucky if
you have six days income set aside.
If you don't have money saved for when these problems
occur, then just what can you do? First and foremost,
you need to have a plan in the event this does happen.
Just sitting down with your budget and saying to
yourself "What If" will help you know what you need
to do to be prepared. Here are a few suggestions
that will make it a little easier:
It is always best for you can keep your bills to a
minimum at all times and try to save as much as you can.
Even if you are bringing in good money you need to
consider the loss of your income before you make any
major purchases.
Keep your freezer and food pantry stocked.
Determine what assets you could use in the event you
needed money to get by. Start with things like an
IRA, 401k or other savings. You can also consider
things that you can sell to bring in money or reduce
your debt.
If things get real bad, you will need to know where
you can get help. This could be from family and friends
or government aid. There are a lot of people that have
had to resort to this form of help that never believed
it could happen to them.
Know your priorities. Food and shelter will be your
main concerns if you lose your income. Whatever money
you have should go for these expenses first.
Contact all of your bill collectors as soon as the
problem arises. Let them know that you have lost your
income and are doing everything you can to get back
on track. Get the persons name and department you
spoke with and tell them you will keep them posted.
Trying to hide from these people will only make
matters worse.
Let the entire family in on the problem and tell them
that there will need to be some adjustments made. Enlist
their help with ideas to earn income or cut expenses.
Being prepared for the worst will make you sleep a little
better while times are good.
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About The Author
Terry Rigg is the author of Living Within Your Means - The Easy Way
and editor of The FREE Budget Stretcher Newsletter and Budget Stretcher web site.
He has 25 years of experience counseling individuals and
families concerning their personal finances.
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