No more income — now what? – Get our quote online

For all of us, "normal" life disappeared during the blockade. But for some, this poses an additional challenge: suddenly losing your income. Business owners or consultants were suddenly canceled from scheduled work for their customers, while shop and restaurant owners were ordered to close.
Many wages have been asked to cut from 20% to 50% of wages and some are already facing reductions.
For each of us, this has a huge effect. But when we haven't had time to prepare mentally or financially (slowly reducing expenses), it looks like we've just been hit by a bus. Debt orders continue to arrive and we know that we are facing a serious problem.
The situation is aggravated by the feeling of not being able to control the result. So, here are some strategies to help you overcome this.
Step 1 – Put the family on board to cut your expenses
You and your family face your expenses together. If you are on a block, it is easier not to spend. But when the restrictions increase, you will have to resist the temptation to open up to your expenses, since this is only the beginning of the pandemic and its effects.
The faster you cut your expenses, the longer you will be able to last with less revenue. Quickly cut deep – if it's not essential, don't spend it.
We did it as a family when I decided to stop business work to start my own business. One of the greatest lessons I learned was the positive effect that the family approach had on my children. Now they are much more aware of the cost of things, much more sensitive to what they ask for and much more grateful for what they have and waste.
Step 2: renegotiate expenses
Call anyone who has a monthly debit order and tell them you're trying to cancel it since your income has run out and ask them if there is a better deal.
I have a subscription to the Financial Times. Three weeks ago, in anticipation of this blocking effect on my business income, I entered the online chat function with a representative and asked to cancel. They immediately gave me a 20% discount. I was pausing to answer because I really wanted to cancel, and they immediately gave me another 10% discount. It amazed me how easy it was to get a better deal for the exact same thing.
Short-term insurance – like auto and home insurance is another one that renegotiates at least every two or three years. The great thing is that you can submit your existing insurance program and get a similar quote.
One caveat though, make sure it's a quote similar to that of a reputable insurer because you need them to pay if you request.
Cellphone and data packs are another hidden money guzzler that you can get back as there are new offers at all times. Also, don't fall into the trap that when your contract is over, you need to get a new phone. If your phone still works, convert to a pay-as-you-go or low-cost monthly contract. Reduce your monthly repayment at least what you were paying for the loan for the phone (and the interest on it).
Step 3: access Plan B as soon as possible
You need to get other sources of income now. I have seen friends and clients in the past three weeks being completely paralyzed by the financial effect of losing their income. As I understand the emotional effect, every minute not spent trying and trying new things is time without revenue … and expenses keep on coming.
Again, don't underestimate the powerful lesson your kids will learn by seeing you do whatever it takes to earn an income. When I was in second grade, my father's business was bought by another company. There were two CEOs, so the CEO stayed and my father lost his job.
I saw him making an intermediate plan to get some money before his next CEO assignment came. As an adult, I can now appreciate how incredibly difficult it must have been to switch from CEO to side hustler. But he did what he had to do to keep the food on the table and limit the hole that no income puts in your savings. And in the meantime, he taught me what it means to take responsibility, make the best of whatever situation you are in.
There are many ways to make money online. For example, companies always do market research and will pay you to fill in online questionnaires. Many people who launch a new website will also pay for you to take the "usability test".
Step 4: diary
An additional challenge of losing your income is that it is loaded with emotions – disappointment, anger, disbelief and more; expectations that you have placed on yourself (or your partner) that you are no longer able to fulfill.
One of the problems if you go straight to survival mode is that you often don't take the time to get over it – you just bury the emotions.
The danger of this is that emotions re-emerge – both the next time it happens and when you retire (because the pension imitates this situation with no more income, but with expenses to pay).
There is significant power in journaling. There is a lot of proven brain science behind it because it helps solve problems, reduce stress and improve health, even in people who write only once a month. So take a pen and a book and write.
It won't be great when you need to fill out repetitive online surveys for small amounts of money or when you need to cut the things you usually like. You are worth much more, this is not in question.
Extraordinary times require extraordinary measures. And, like all times of life, this too will pass.
• Linfield is an independent Southern Pride Wealth financial advisor who owns the Certified Financial Planner accreditation and is the founder of Working Women & # 39; s Wealth, an initiative that allows women to earn, protect and invest money .