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Tag Archives: Losing a job

What to Do When Your Income Decreases

What to Do When Your Income Decreases

Have you ever experienced a sudden decrease in income? Perhaps your company went out of business without warning. Or, maybe you had an accident and had to take a temporary leave of absence with no short term disability pay. Of course, you may have planned to leave your job for a better opportunity to make even more in the long run. The facts are there can be a lot of reasons people experience a change in their income. But whether or not it is planned, a decrease in your income can wreak havoc on your budget and your finances. But what should you do when your income decreases? Here are some steps to take to make sure you income decrease doesn’t harm your finances too much. 1. Take Stock Even if the decrease in your income is planned, you will need to evaluate your finances to get a starting point. How do you know what steps to take or where you are headed if you don’t know where you are starting from? Determine what your outstanding debt is. Make a list or spreadsheet of all of your necessary bills including rent or mortgage, auto loan payments, food, utilities and any ...

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Preparing To Lose a Job

preparing for a career change

Losing a job has to be one of the most emotionally and financially difficult challenges someone can experience. I wish no one ever had to have such an upheaval, but no job is ever 100% safe. Technically, any one of us could lose a job. However, there are things you can do to prepare and make life easier if you find yourself on the other side of a pink slip. We Might Lose a Job Soon Long time readers might remember that Jim got a big promotion at the beginning of this school year. After completing a master’s degree in administration, he got a job implementing a new state law regarding teacher evaluations. The state decided that every teacher had to have a formal review to keep schools moving forward, however they gave few instructions on how to determine what constituted a good report. Jim’s position was created to figure it out and start the evaluations next year. Well, we found out this week that the state has decided to scrap most of the bill because it seems too hard and districts aren’t ready. So, what this means is that most of what Jim has been doing since August is ...

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Could You Survive Financially If You Lost a Job?

Some recent posts from Cash Rebel and Reach Financial Independence have really gotten me thinking about how much money we should be keeping in emergency savings and how fast we could go into survival mode if we had a sudden loss of income. Now that we have paid off all of our debt other than mortgages, I’m curious to see if we could get by on passive income alone. After all, isn’t that the ultimate goal of financial independence? Ultimate Goals Our ultimate goal would be to make enough passive income, mostly from rentals, to pay our necessary expenses. Anything we earned from salary or other endeavors would go into investments or retirement. While the timeline fluctuates based on the mood of the day, I think it’s reasonable to say we will have our mortgages paid off within the next 10 years. At that point, we can get by on very little. Because I sadistically like to look at worst case scenarios, what if we were suddenly faced with no salary income? Could we make it without resorting to panhandling?

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