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How To Deal With A Loss Of Income

For many over the past year, there has been the need to reassess and readjust to a new lifestyle. The lockdowns enforced during the pandemic have seen many suffer financially. Livelihoods are eroded, and you must rethink how to spend what income you have. We thought it apt therefore to consider how to deal with a loss of income. 

How To Deal With A Loss Of Income – Assess Your Financial Situation.

The first thing you must do is assess exactly where you stand financially. Do you have savings, what is the new household income, and what are your outgoings? You need to make an important decision if you have savings as to what portion of it you are prepared to live off to survive. At least in the short term. It is time to budget, if you were not already. Check what is going out each month, and whether everything is a necessity. Cut back if not. Prioritise the important payments, which naturally are utility bills, rent/mortgage and putting food on the table. You may still be able to take advantage of holiday payments from certain creditors. This is a last resort though, as you should remember that interest will not be frozen during these holidays.

Lower The Outgoings.

As mentioned, there are essentials in life that must be paid for, but for most people there are non-essential costs in each month too. So you need to decide which expenditure you can cut out, at least in the short term. Things like gym memberships (especially in current climate), streaming services, expensive phone contracts, and a variety of other subscriptions. For example this month I saved £15 for every month in the future by cancelling my two Playstation subscriptions. I can easily survive without them, they are not a necessity.

How To Deal With A Loss Of Income -Account For Everything

It may help you to do this by using technology. This could be in the form of a spreadsheet or more likely an app that details your financial situation saving you the hard work. This helps you to plan for the future and cut out certain costs. It may also alert you to areas you are not receiving value for money for your expenditure. Once you are in the habit of listing your expenditure, it will become less of a chore.

Replace The Lost Income

The easiest solution naturally, but easier said than done! There may well not be the opportunity to gain employment in the same industry or role as you were in before. Thus, you may have to be more creative. In the current climate you may have to lower expectations too, and source employment wherever you can find it. You are in the same boat as a lot of other people right now. There are a thousand ways to make extra money, and a thousand and more articles online giving you guidance. Have a search now. You can do matched betting, fill in surveys, buy and sell items, write, proof read and much more.

Look To The Future

As long as you have a roof over your head, and food on the table, then that is all that matters really. Accept that in life you have ups and downs. Sometimes it may be a struggle and you cannot have everything you desire. But realise that though times are tough now, and it is tough to deal with, things can change in the future. Plan for better times, and be proactive and strive to improve your situation. But above all, remember that life is not a competition. Do not get down by the lives of others, many who like to project a certain image online. What anyone else does is irrelevant. Just ensure you and your family are happy.

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