7 Things To Do With 60% Income Loss – Part 2

This is the 2nd part of a 2-part post on budgeting, severe budgeting after income loss.  If you did not read 7 Things To Do With 60% Income Loss – Part 1, do so now as you’ll have missed the first 4 steps toward budget success.
money just flies out of your wallet, income loss

This listing is so helpful, this is the method that we have used and still use to this day so that we can plan for our future instead of our future planning for us.

So, let’s continue with the rest of …

7 Things To Do With 60% Income Loss – Part 2

Read Part 1

  • Create a budget (sign up to receive our free Budget worksheet)
    • Not one in the way you are used to spending, but a new one
    • Make sure you pay your bills on time, this is no excuse to destroy your credit or destroy the trust you were given
    • Include a Savings category
      • This is so critical! And, it will make you feel good that you are creating an emergency fund.
        • You can also budget more, if you can, for a special cash purchase or a trip.  Don’t go overboard or abuse your savings strategy. Be smart!
    • Medical expenses happen
      • We do not have traditional insurance, not even through Roadrunner’s job.  We pay $90/month for the both of us to have Inpatient Hospitalization only
        • We are pretty healthy and try to eat right, no smoking, no drinking. While I am diabetic, I watch carefully what I eat, and according to doctor I am very healthy.
        • Check out Christian Healthcare for more information and use our Referral ID#161360 Edwin & Tammy Covey – we thank you.  We love it! They also have 100% coverage for $150/month and if you have a large family, you will only pay $450/month for that coverage even if there are 10 in family. Check it out!
    • Don’t forget to include buying gas for vehicles
      • Your gas consumption should dramatically decrease. Make sure to reduce unnecessary trips, even if they are short ones
    • Remember, that you will still need to pay for your license tags, property and real estate taxes
    • Look at your electrical and heating bills to see where you can cut back
      • For us, this was using the electric heaters alot less in the winter as well as turning off all unnecessary lighting
      • Turn down the heat on water heater. Most people have this set extremely hot and that uses more energy
      • There is also a neglected area for electrical and heating: changing and cleaning the filters and hosing down the central unit
    • Groceries & Personal Care
      • We can all admit that we buy some things that are unnecessary. Seriously look at your cupboards and refrigerator, any freezers and take inventory – write it down
      • There are many ways to make stuff instead of buying it and Pinterest has alot of ideas
        • Visit my Pinterest to see all of the homemade food choices there are. These are some things I make:
          • Spice mixes
          • Yogurt
          • Butter
          • Mayonnaise and Mustard
          • Velveeta
          • Bread
          • Biscuits
          • Cakes
          • Pudding
          • Salsa
          • Lotion, makeup
            • I’ve been making skin-care for 20 years, this lotion is the bomb! And, very healing.
          • Laundry Detergent
            • 200 loads for less than $5 and it cleans great
          • Dryer sheets
            • Easy method with wash cloth and essential oil!
          • Gardening, freezing and canning
          • Raising own animals, even chickens
          • So much more, and I will be adding more of my recipes, so sign up and keep informed!
    • Clothing and Self-Care expenses
      • You can find great deals at yard sales
      • If you have Facebook, most towns have online yard sales
        • Type into Facebook Search your town (or other surrounding community) and ‘Yard’
      • If your family is used to buying name-brand clothing, shoes or personal care
        • Drastically cut this expense
        • Getting your nails done or pedicure? Stop and learn to do it yourself
        • What about your hair? Of course, trims are good but all of the other can go bye-bye
      • I will say that sewing your own clothing can be very expensive. Shop wisely and use store coupons and sales.
    • Remember, there are vehicle maintenance expenses, so make sure to budget for the oil and filters.
      • Learn to rotate your tires
      • Learn to change your own oil and filters
        • Youtube has many videos
      • Wash and detail your own vehicle
      • Change your own air filter
  • Stick to the Budget: Get everyone on board
    • This is not going to be easy
    • There may be backlash – encourage, encourage, encourage
      • Do not let emotions get out-of-control
  • Simplify Your Life
    • We get so used to doing stuff over and over that we don’t realize how complicated we have allowed our lives to get
    • Learn how to make things, be more self-sufficient.  You will make mistakes, but you’ll learn and you will feel so much better

The most important of all of these to keep doing is praying and trusting God!

Where are we now, a year later?

Much happier, simpler life and still on a tight budget.  And, yes, all bills paid and we have put back money into savings.

What about Christmas? We spent $100 for everyone. S-I-M-P-L-I-F-Y

While I do work a part-time job now, it is far less than I was making. It pays for the gas, groceries and tithe.  By the way, we spend less than $150 a month on personal items, groceries and vehicle maintenance for two of us. We used to spend $400 or more per month.

So, yes, you can do this!

Even if you do not have a drastic decrease in income like we did, it is so very important to simplify anyway and cut back.  Build a budget and stick to it, because nothing is guaranteed on this earth.

If you haven’t noticed, God answered my prayer!

Let me know how you have weathered the storms of financial loss and any ideas you can add to help the other readers by commenting below.

 

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