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Navigating Income Loss

 

Feeling lost?

 

The stress of losing a job not only affects your finances—it can also take a toll on your mind and body. The path to recovery includes stops along the way to scrutinize your options, downsize your spending and energize your spirit. 

 

Scrutinize

 

Assess the immediate impact of your income loss and seek out helpful resources

 

Review Your Budget

No budget? Then start one! Log your income and expenses for the past three months to see exactly where your money goes each month.

 

Reach Out To Your Network

You do not have to navigate your setback alone. Brainstorm a list of family, friends and organizations that you can turn to for support and then contact them.

 

Research Unemployment Benefits

Check to see if you qualify for unemployment benefits or government assistance programs.

 

Downsize

 

Increase cash flow while you work on a plan to replace your lost income

 

Eliminate Optional Expenses

After scrutinizing your budget, you’ll be able to identify which expenses you can spare. Cut as much as you can to contain the long-term impact of your income loss.

 

Substitute Affordable Options

Use cost-saving options for the expenses you simply cannot cut out. These may include couponing, buying generic or adopting some frugal habits.

 

Liquidate Your Investments

It is appropriate to dip into your savings and emergency funds after sudden income loss. Consider cashing out investment accounts in order to have access to more savings.

 

Sell Your Stuff

Selling items online has a low barrier to entry and can keep some money coming in while you look for a more permanent solution to your lost income.

 

Energize

 

Avoid desperate decisions in desperate times by keeping motivation levels high

 

Invest In Yourself

Turn a setback into an opportunity to develop a new skill, to learn a new program or to explore a new industry. There are many free courses and tutorials available online.

 

Polish Up Your Resumé

Sudden income loss can negatively impact self-esteem. Updating your resumé gives you a chance to focus on and appreciate your accomplishments.

 

Practice Self-Care

Maintaining a healthy mind and body helps you deal with stress. Look for simple ways to support yourself physically, emotionally and spiritually.

 

Sources: BBC, Forbes, HelpGuide.org, Investopedia