Welcome to the latest series on JosephSangl.com – I Lost My Job – Now What?
In a time of increasing unemployment and job loss, I thought it might be helpful to write this series. It is my hope that it is a help to those who have experienced a job loss.
Part Two – Understand And Fill The Gap
I have met a lot of people who are so overwhelmed with making their financial ends meet that they have given up hope. They have despaired of making it work at all.
This is not the case! It CAN work. It CAN be dealt with! It is NOT hopeless! However, you must understand the gap and fill it.
What is the gap? The gap is how the amount of additional money needed to make the budget balance. While the US Government might print more money to "fix" the situation, we cannot do that (although it does come with free room and board if you do print your own money).
Prepare a written spending plan using the priorities discussed in Part One. This will allow you to understand the gap.
How do you fill the gap? Well, using our equation, INCOME – OUTGO = EXACTLY ZERO, there are two ways – reduce OUTGO or increase INCOME.
- Eliminate unnecessary expenses (cable, internet, home phone, cell phone)
- Requote homeowners (or renter's) and auto insurance
- Modify entertainment to no-cost and low-cost options (movies from library, hiking, swimming at the lake, fishing, Hulu.com)
- Eliminate health club membership (run outside)
- Sell the car and purchase a paid-for beater
- Groceries: Buy off-brands, use coupon services, prepare more food at home
- Car pool
- Work from home
- Apply for jobs like crazy – monster.com, hotjobs.com, careerbuilder.com
- Get a job – any job will do for the short term – contract/temporary positions, deliver pizza, clean houses, fast food, work for a family member, commercial cleaning, deliver newspapers, polish shoes, wait tables
- Sell stuff – yard sale, Ebay, Craigslist.org
What other ways would you or have you increased INCOME or decreased OUTGO?