How to deal with sudden income loss

Listen to this Podcast


How to deal with sudden income loss

If COVID-19 and its aftermath have left you without work — or without enough work — it’s time to hit the reset button on all things money-related. Here’s a cheat sheet for dealing with the new normal when the outlook is less than rosy.

Act now!

When times get tough, many people stop opening bills and bank statements and carry on like everything’s fine. The key to dealing with sudden income loss is to act immediately so you can preserve every dollar.

Use the “B” word

No one, except for that kid who sat in the front row in math class, likes budgeting. Then again, no one likes going to the dentist either. But in both cases, avoiding it for too long can have some pretty painful consequences.

In a war room situation like sudden income loss, getting a grip on how much is really coming in and how much is really going out is mission critical. It’s also important to look at the timing of income and expenses to avoid relying on credit cards.

Fortunately, we live in the twenty-first century, when pencils have been replaced by apps. A few to try:

  • Mint can help you keep track of money spread across different accounts and stay on top of bill payments.
  • Pocketguard links your accounts and keeps you from overspending by telling you how much you have left in your budget.
  • Goodbudget uses the tried and true envelope system to help you manage monthly spending; couples can use it jointly.

Sub your salary

Have you applied for any government programs you qualify for?

Have you considered ways to generate money to replace some of your lost income? Could you rent out a room, pick up some gig work, offer online tutoring or become a virtual personal assistant?

Get a handle on debt

This is also the time to get real about how much debt is piling up from all sources and take steps to stay on top of it:

  • Be sure to make at least the minimum payments each month to protect your credit rating.
  • If you’re carrying a lot of high-interest debt, consider applying for a consolidation loan. The lower interest rate will help you either pay it down faster or leave you with a little more in your budget to cover other expenses.
  • If you’re really struggling, you might be able to arrange a debt (or mortgage) deferral from your bank.

Trimming isn’t just for hair

That weekly trip to the barber’s or the nail bar felt like a necessity when you had a real office to go to. But now it’s time to be brutal and slash everything except essentials. If you’ve gotten out of the habit of distinguishing needs from wants, here’s a refresher:

  • Needs are expenses that are necessary to keep a roof over your head, food on the table, maintain health and safety and contribute to finding the next (or better) job. And ok, an occasional treat to help you stay the course.
  • Wants include purchases related to vanity, entertainment, time wasters, upgrades, gifts, subscription services and any expense that you can safely put off until later.

Say something

The biggest mistake made by people with income and debt issues: not asking for help. There are many places to turn, including government programs, debt counselling, your financial institution, family. And, when you need help from someone who can offer solutions tailored to your situation, your Carte Financial Group Advisor is also here for you.

44 thoughts on “How to deal with sudden income loss

  1. head shop says:

    I am the proprietor of JustCBD Store company (justcbdstore.com) and I’m presently trying to grow my wholesale side of business. I am hoping someone at targetdomain can help me ! I considered that the most suitable way to do this would be to connect to vape companies and cbd stores. I was really hoping if anybody at all could suggest a reliable website where I can buy Vape Shop B2B Sales Leads I am currently looking at creativebeartech.com, theeliquidboutique.co.uk and wowitloveithaveit.com. Not exactly sure which one would be the most ideal option and would appreciate any assistance on this. Or would it be much simpler for me to scrape my own leads? Suggestions?

  2. Umut Alpaslan says:

    The very next time I read a blog, I hope that it does not disappoint me just as much as this one. After all, Yes, it was my choice to read through, nonetheless I truly thought you’d have something useful to say. All I hear is a bunch of moaning about something that you could possibly fix if you were not too busy looking for attention.

  3. Kratom Capsules says:

    Howdy! This post couldn’t be written much better! Looking at this article reminds me of my previous roommate! He always kept talking about this. I am going to forward this information to him. Fairly certain he’ll have a good read. Thanks for sharing!

  4. Server Pro North says:

    When I initially left a comment I seem to have clicked the -Notify me when new comments are added- checkbox and now every time a comment is added I recieve four emails with the exact same comment. Is there a means you are able to remove me from that service? Many thanks!

  5. Extreme Green says:

    An intriguing discussion is definitely worth comment. I think that you need to publish more about this subject, it might not be a taboo subject but generally people don’t speak about these issues. To the next! Best wishes!!

  6. Glr Fasteners says:

    I blog often and I really appreciate your content. This great article has truly peaked my interest. I am going to book mark your blog and keep checking for new details about once a week. I opted in for your RSS feed too.

  7. Tic Tac says:

    I’m amazed, I have to admit. Seldom do I come across a blog that’s both equally educative and amusing, and without a doubt, you have hit the nail on the head. The problem is something too few folks are speaking intelligently about. I’m very happy I stumbled across this during my search for something regarding this.

  8. Dvm Bali says:

    Good post. I learn something new and challenging on sites I stumbleupon everyday. It will always be helpful to read through content from other writers and use something from other web sites.

  9. Fat Fish says:

    Hi, I do think this is a great website. I stumbledupon it 😉 I may return once again since I book marked it. Money and freedom is the best way to change, may you be rich and continue to help others.

  10. Golden Talon Construction says:

    The very next time I read a blog, I hope that it does not disappoint me as much as this particular one. After all, Yes, it was my choice to read through, nonetheless I really thought you would have something interesting to say. All I hear is a bunch of moaning about something you could possibly fix if you were not too busy seeking attention.

  11. Ideal Fix says:

    You are so awesome! I don’t suppose I’ve truly read anything like this before. So nice to find someone with a few unique thoughts on this subject. Seriously.. thank you for starting this up. This site is something that is required on the web, someone with a bit of originality!

  12. 1800 Granola says:

    Hi, I do believe this is a great website. I stumbledupon it 😉 I will return once again since i have book-marked it. Money and freedom is the best way to change, may you be rich and continue to guide other people.

  13. Nutrition Central USA says:

    Hi, I do think this is an excellent site. I stumbledupon it 😉 I am going to come back yet again since I bookmarked it. Money and freedom is the greatest way to change, may you be rich and continue to guide other people.

  14. Student Loan Forgiveness says:

    Having read this I believed it was very enlightening. I appreciate you taking the time and effort to put this informative article together. I once again find myself personally spending way too much time both reading and leaving comments. But so what, it was still worth it!

  15. Home Grass says:

    This is the right webpage for everyone who really wants to understand this topic. You know a whole lot its almost hard to argue with you (not that I really would want to…HaHa). You certainly put a new spin on a subject that has been discussed for decades. Wonderful stuff, just wonderful!

  16. how to edit videos for instagram says:

    I’m impressed, I have to admit. Rarely do I come across a blog that’s both equally educative and interesting, and let me tell you, you have hit the nail on the head. The problem is something that not enough folks are speaking intelligently about. I’m very happy I found this during my search for something concerning this.

  17. AFB Dog says:

    Aw, this was an exceptionally nice post. Taking a few minutes and actual effort to produce a top notch article… but what can I say… I hesitate a whole lot and don’t seem to get anything done.

  18. jonathan manzi says:

    An impressive share! I have just forwarded this onto a co-worker who had been conducting a little research on this. And he in fact ordered me dinner because I discovered it for him… lol. So let me reword this…. Thank YOU for the meal!! But yeah, thanks for spending some time to discuss this topic here on your web page.

  19. Simple Skin Wc says:

    An outstanding share! I’ve just forwarded this onto a friend who has been doing a little homework on this. And he in fact ordered me breakfast because I found it for him… lol. So allow me to reword this…. Thanks for the meal!! But yeah, thanx for spending some time to discuss this issue here on your site.

Leave a Reply

Your email address will not be published. Required fields are marked *