How to Deal with a Sudden Loss in Income
There is no doubt that experiencing a sudden drop in your income is a highly stressful experience which can be very difficult to deal with. However, it doesn’t mean that your finances have to go into a terminal state of decline. But you do need to take action to ensure that you are dealing with the situation in the best way possible. Here, we will be discussing some of the best ways that you can weather the storm of a sudden drop in income and come out the other side stronger.
Which Expenses Can You Reduce?
Obviously, when you go through a loss of income, you need to start by thinking about which expenses you can look at tackling. To start off with, you should make a household budget which takes all your essentials and non-essentials into account. Obviously, it is the second column which you will want to try to deal with first. Your best course of action is try eliminate the biggest expenses first. Of course, cutting out your daily Starbucks will make a difference, but it will take a long time before you start to notice it.
Check That You Are Getting All Available Financial Support
There are all sorts of government programs which are designed to help people who go through a sudden loss of income. It is certainly worth double checking that you are getting all the support which is available to you. In more specific situations, you may need support like hired help to fight for your personal injury case. And just the simple act of talking through what has gone wrong with those closest to you can help to take some of the weight off your shoulders.
Look for Ways to Earn Extra Income
Thanks to the internet, it is easier than ever to find ways to earn extra income to replace what you have lost. To start off with, you could look for things in your household which you can sell online through a website such as eBay. You could also look into your other sharing economy options like renting out a room on Airbnb. There are also plenty of freelance opportunities out there or people who are willing to pay you to complete tasks and errands for them.
Deal with the Emotional Side
As well as all the practical steps that you need to take to deal with a sudden loss in income, there is bound to be a lot of emotional trauma which you go through as well. And it is important that you take steps to de-stress yourself. Not everything in life has to cost money. For example, you can still do activities which are good for your mental health like yoga and meditation. You can also keep yourself in good shape by running, cycling etc. Cope with the emotional side of your drop in income and you will put yourself in a better position to deal with the practical side.
While on the surface the situation just totally sucks – whatever the reason for the drop in your income – if you keep a positive frame of mind and think creatively about other avenues you can take to supplement the lost income, we think you’ll do just fine. You know the old saying, “When one door closes, another opens.” There may be a more lucrative opportunity just waiting around the corner for you.