Episode 68: What to do when your income drops, July 12, 2011.
Today Kevin Suddick joins me again to discuss how to handle a reduction in your monthly income. This can come from loss of overtime hours, a change in jobs, layoffs and more. Here in Wisconsin, the new state budget signed by governor Scott Walker will cause state employees to contribute to their own retirement and benefits plans instead of the state paying for all of it. That means state employees will see their net income drop by roughly 6%. We wanted to talk about how to deal with a financial change like this to help people in similar situations turn a mountain into a molehill.
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Show notes:
- Kevin explains the steps he walks his clients through when they’re in this situation.
- The first step is writing your situation out on paper. Identify where you are and establish a baseline.
- Next, kevin recommends putting some control mechanisms in place to prevent overspending.
- Third, it’s helpful to identify some areas where you can cut back as a family in your spending.
- We then shared some thoughts on saving money in your everyday spending before getting back on task.
- If you have a variable interest rate on your mortgage, now is the time to lock in a fixed rate!
- It’s also very important to have an emergency fund in place to protect you from long term unexpected expenses.
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