Worried About Money? Five Steps To Take Control

Whether you have a pay cut or a job loss, a cut in income, or are just concerned about money in this chaotic world crisis at this time, or any time, here are 5 steps to help you go from worried to peace.

1. Differentiate between feelings and facts. Feelings are temporary, but facts need work. The initial feelings that Joe felt when he was told that he would have a 10% pay cut for the next few years were, apprehension, trepidation and generalized angst. After we talked about it, he was able to allow those feelings to pass and work on the reality.

2. Check your budget. It turned out that he didn’t really have a set budget, so we created one based on his current income and how he allocated/spent his salary. The we looked at it from the perspective of where he might be able to cut back. I could see him breathe a sigh of relief, when he realized life as he knew it would be really just about the same. The only things he might miss were dinner deliveries that actually weren’t that delicious, but convenient. He was a good, simple cook who could save money AND have a more satisfying meal that his wife and kids appreciated.

3. Make a plan. When you have a pay cut or a job loss, there are two ways to adjust the budget. One is to cut back and the other is to make more money.

For industries who have been financially affected by COVID-19, there are many government programs that have been created to assist them. This assistance may not be enough to replace the lost income. If you have temporarily lost your job, look for other job opportunities such as food delivery, grocery stores, and health care.

When jobs are lost or salaries are decreased, some people try to continue to live at their current standard of living. I have tried it. My clients have tried it. It just does not work. If you are making less money, you need to spend less money. Just like Joe did with his dinner deliveries, you can reduce money out with simple things. I’ll be you have subscriptions you pay for regularly that you don’t use. COVID 19 has forced us to do less, get less exercise. So how about helping your health by doing things like mowing your own lawn or fixing up little things around your home yourself. It takes some work but it’s a nice achievement.

4. Reduce the plan into manageable steps. When facing a scary situation, its easier to break down a task into small parts to achieve a goal. If your goal is to look for employment, then the first step could be to decide what industry you want to work in.

The second step is to look on job sites to see who is hiring. The third is to dust off that resume, update it, create a series of cover pages that are relevant to each job possibility and send to the companies that are hiring.

5. Execute the plan. When it comes to change, especially under the kinds of chaotic conditions we’ve been dealing with in 2020, most people suffer from inertia. We’re almost stubborn about staying with our routines. Maybe this is a blessing that will make us all reassess our goals and needs. While it takes a little more energy to get over the fear of looking at your budget, or looking for a new job, a better future is just ahead as long as you take the first steps.

AND, most important, this is a courageous step that’s very uncomfortable for most people. So be brave, pat yourself on the back, and remember to be kind to yourself.