Losing Income Does Not Mean the End of Your Savings
Losing a job can happen to anyone. Or needing to change jobs because of a family situation is also very common.
Dealing with a loss of income is frightening, but there are ways to manage a sudden change. The team at Broussard Poché, LLP has a few tips to make the transition less of a drain on your savings.
This is what your emergency fund is for and it’s time to dip in. If you’re reading this and realize you do not have an emergency fund, it’s time to start one. This account should be separate from your savings account where you are saving towards a purchase. This emergency fund should contain 3 months to 6 months of living expenses. Having an emergency fund ensures all of your bills will be covered.
Trim Your Budget
If you facing bringing home less money, it’s time to cut back on what you are spending. Cancel your cable and sign up for a cheaper online streaming service. Place your lawn care service on hold and do the yard work yourself. Cook more and limit eating at restaurants. There are lots of ways to save money here and there without sacrificing quality of life.
File for Unemployment
If you are eligible, file for unemployment right away. Don’t wait on this one. An unemployment check might be small, but it will help cover some living expenses until your outlook is more certain.
Call Your Creditors
Instead of missing payments without notice, call your credit card company and lenders. You may be able to freeze payments for a while if you explain your situation. You may also be able to renegotiate the terms of your loan.
Don’t panic, there are many ways to get through a loss of income without draining your savings! The best motto is to be prepared. Even if you think your job is secure, make sure you have an emergency fund in place.