Adjusting to Suddenly Reduced Income

Summary

Reactions to an unplanned, sudden decrease in income are not simple. The situation probably involves circumstances over which you have had little control. Many people tend to blame themselves and end up "beating themselves up" or hurting others. What happens in such situations involves a complex web of emotional, economic, and social interactions. It is important to recognize that there are various stages of grief that you will experience as you adjust to the income loss. Reach out to others rather than blaming yourself or others. Involve the whole family including children in reassessing how money will be used. Take stock of current expenses, discuss how spending can be adjusted, communicate with creditors, and look again at your financial goals for the next few months. Personal goals can be assessed individually. However, when you spend the time and effort to set mutual, agreed-upon family or family business goals, the decreased amount of money available will be used more effectively and efficiently. Recognize and be ready to manage the inevitable disagreement or conflict over how the reduced amount of money will be used. Doing so will help you and your family live with the consequences of the unplanned income change, develop new options, and begin to move on.

Table of Contents

Produced by Communication and Educational Technology Services, University of Minnesota Extension.

In accordance with the Americans with Disabilities Act, this material is available in alternative formats upon request. Please contact your University of Minnesota Extension office or the Distribution Center at (800) 876-8636.

University of Minnesota Extension is committed to the policy that all persons shall have equal access to its programs, facilities, and employment without regard to race, color, creed, religion, national origin, sex, age, marital status, disability, public assistance status, veteran status, or sexual orientation.