How To Deal With A Sudden Loss Of Income

Sometimes, the unexpected happens. Situations change and become precarious. And, in the current climate, there are lots of reasons for that sudden loss of income. And, it can be a scary place! With so many things looking uncertain, there are things you can do  to deal with a sudden loss of income.

 

Assess your current situation.

Hopefully you already have a budget in place, so now is the time to check it. Have a look and see what direct debits go out and when. Add up how much they add up to. You need to ensure that you have the necessities paid for. So, your mortgage or rent, council tax, water and gas/electric. Plus food and perhaps transport. There are certain circumstances where you can ring up and request a payment holiday, so check with your bank. It does mean that you will have to pay it back at a later date, but it can help in the short term.

 

Cut back if possible.

Again, there are certain aspects of life that you can not cut back, even with a sudden loss of income. Things need to be paid for, unfortunately. But, if you go through your budget, you will see things you can [hopefully] cut back on. Things like gym memberships, reducing phone contracts, cancelling tv services (such as Sky or Netflix) if you can. Things that can save money quickly. This isn’t meaning cutting out tiny amounts; this is to try and cut out bigger numbers from your budget. This is a reaction to a sudden loss of income. Reducing your outgoings is imperative.

 

Track every penny.

Those of you who are not new here will know that I’m a fan of tracking spending. Using a budget planner, app or a spreadsheet. Now is that time to track every penny that goes out and assess where you could make further cut backs. Tracking and knowing everything will help, now and in the future. It takes a little time to get in the habit but once setup, it should not take longer than ten minutes.

 

Try and find a way to make some money.

With a sudden drop of income, you might need to find creative ways to bring in some extra money. Now is the time to start that side hustle you’ve been thinking about! But, if you’ve got anything you can sell, on either Facebook or eBay, then get it listed. Start doing surveys on an evening to bring in some. It won’t be a lot but everything will help. Especially with surveys where you could get vouchers to help pay for groceries, for example. Lots of us have items in our home that we no longer need. A sudden drop of income means you have to try and make it elsewhere. Selling things you no longer need is a quick win!

 

Related post: 10 Profitable Side Hustles You Can Start Today

 

Make things from home.

One of the easiest ways to cut back is to look what you have in your cupboards! There might be multiple meals you can make from the things you already have in your stockpile. Now is the time to use it. Get your meal plan sorted and get creative with things you already have in. Try and reduce your grocery costs; this is one area that can be very easy to make cut backs in.

 

Related post: How To Start A Stockpile

 

Finally, don’t panic!

It’s very easy for me to say don’t panic, but try not to. Keep a level head and get a plan in place. Ask for help from family and friends, if you can. People are more than willing to help, most of the time 🙂 get a plan in place and take it week by week. Get searching for new jobs, if there are any in your area. And remember, this might seem dire but hopefully it’s only temporary. Also, take care of yourself. It’s bound to be a stressful time so you need to make sure that you make yourself a priority in there as well.

 

Do you have any other tips to add? Leave them below!

 

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