Discussing Life Changes
Managing money after a job loss
Talking about money is hard enough when you have a steady flow of income to work with. It can be even harder when, in the face of a job loss, that income stream ends.
Very few of us are wealthy enough to carry on as if nothing happened should we lose a job. The loss of, or significant reduction in, your primary income can have a devastating effect on the family and requires some honest, up-front conversation, right away.
What makes this more difficult is that job loss is stressful enough on its own. Talking about money, or how to make what resources you have work for an unknown period, can cause a swell of emotions as you and those close to you embrace the reality of your situation. It’s easy to see why anyone might want to put it off.
The faster you come to terms with what’s going on and develop a plan to face it, the less likely you’re going to get yourself into deep financial trouble.
Consider these tips to get the conversation going:
- Move beyond fault and address the situation directly. We rarely know why things happen the way they do. Trying to blame someone, or yourself, is not likely to resolve your current issue, which is managing your resources. Set aside thoughts of blame and address the problem head-on.
- Talk – don’t attack. Money is a touchy subject, especially for couples. You may not find any value in what your partner gets great enjoyment from, so you might find it easier to cut one thing or another from the budget. Your partner may feel the same way about some of the things you enjoy. Concentrate on the issue at hand and avoid turning it into a debate about who spends money how.
- Be open and honest. Take a good, hard look at your finances, bills, income, savings and any other resources you have. Don’t hold back. Get everything on the table so you know exactly what there is to work with. Talk about your goals. Talk realistically about your situation. Discuss how you can approach and achieve those goals under these new circumstances.
- Make concessions. If you’re facing the loss of income for a short period of time or for the long haul, you have to be willing to give and take on what you have to work with in order to meet your obligations and avoid spiraling into debt. If it takes giving up on some luxury items, putting off a vacation or passing up the daily Grande Latte Supreme to make ends meet, you need to make that commitment. Make that commitment part of your conversation.
While talking it out and making a plan will do wonders for you during this difficult time, so will good listening, patience and understanding. We all face challenges as we work toward achieving the things we want in life. Keeping effective lines of communication open helps ensure we get, and give the support needed to make it over the bumps.
This article is provided for general, informational purposes only and is not intended as advice specific to your situation.
