Rowe, Barbara R.

English

DigitalCommons@USU

1Adapted from When Your Income Drops, written by Barbara Rowe and DeniseSchroeder, Purdue University Extension Service, West Lafayette, IN 47906.February 2002 FL/FF-I-01 DON’T PANIC–TAKE CONTROLBarbara R. Rowe, Ph.D.Professor and Family Resource Management SpecialistUtah State University1Many circumstances can lead to an abruptreduction in income: a company layoff or cutback,loss of a job, reduced farm income, or loss of asecond income from a spouse. Just the threat ofany of these situations is a serious blow toindividuals and families struggling to surviveeconomically in difficult times.If economic misfortune strikes you or yourfamily in the form of reduced income, is thereanything you can do to minimize the hardship?Yes! This set of fact sheets suggests a number ofsteps you can take to maintain financial control.They are:1) Don’t Panic–Take Control2) Control Stress3) Take Stock of Family Resources4) Take Stock of Community Resources5) Set Priorities for Spending6) Plan to Pay Creditors and Protect FamilyWelfare7) Keep a Roof Overhead8) Meet Insurance Needs9) Sharpen Survival SkillsAbrupt loss of income, whatever thereason, is traumatic. Often the financial setbackwas not anticipated. When it happens, a commoninstinct is to panic. Although natural, thetemptation to tailspin needs to be avoided.Remember the following facts:• Loss of income affects many people formany different reasons. It may be causedby a loss of a job, a softening of theeconomy, an illness or death, poor returnon an investment, or a divorce. It doesn’thelp to blame yourself. Chances are itwasn’t your fault. In any event, self-blamewastes energy, and the energy you spendblaming yourself could be better spent ondealing with your situation.• Feeling the effects of stress is very humanand very natural. That doesn’t make itpleasant. Keep stress at controllable levelsby recognizing the signs and taking stepsto reduce stress. Developing and followinga plan will reduce stress and help youmaintain control of your financial position.One important way to cut down anxiety isto assure yourself you are doing the best you canwith the resources you have. The rest of the factsheets in this series will help you take stock ofwhat you own and what you owe. You are alsoencouraged to learn about community resourcesdesigned to help you and others in time ofeconomic or personal distress. Sometimes peopleare reluctant to ask about “government programs”in time of trouble. However, these are ways inwhich you and I, the community, have tried toprotect our mutual welfare with programs to assistin times of trouble.After you know the resources you haveand are likely to have, talk with your family abouthow you and they use money. Designing a familyspending plan accomplishes two things. It setsyour family up for success by thinking positively.And it helps you to survive financially andemotionally until future goals are decided. Factsheet #5 outlines steps in putting together andimplementing a spending plan.One of the most stressful outcomes of aloss in income is the worry that creditors are allaround, impatiently waiting for you to payoverdue bills. In this situation, avoidance is notthe answer. It is extremely important for you to berealistic about your financial situation and meet itwith a plan. Fears caused by uncertainty and avoidance are always worse than facing the factsand following a plan to take control. Fact sheet #6gives some ideas for working with creditors tomeet your outstanding obligations.Keeping a roof overhead, the utilitieshooked up, and essential insurance is a top prioritywhen income drops. Fact sheets #7 and #8 discussthese concerns.Fact sheet #2 describes what stress is, whyyou are feeling it, and how to take steps to keep itat productive levels.The last fact sheet in the series, #9, helpsyou sharpen your economic survival skills for aloss of income. You can apply the principlesdiscussed to buying food, running your household,purchasing clothing, choosing transportation, andthe other things your family needs.The entire series of fact sheets, #1 through#9 are available from county Extension offices inUtah and at the web address:http://extension.usu.edu/coop/family/fampubs.htmUtah State University is committed to providing an environment free from harassment and other forms of illegaldiscrimination based on race, color, religion, sex, national origin, age (40 and older), disability, and veteran’s status. USU’s policyalso prohibits discrimination on the basis of sexual orientation in employment and academic related practices and decisions.Utah State University employees and students cannot, because of race, color, religion, sex, national origin, age, disability,or veteran’s status, refuse to hire; discharge; promote; demote; terminate; discriminate in compensation; or discriminate regardingterms, privileges, or conditions of employment, against any person other wise qualified. Employees and students also cannotdiscriminate in the classroom, residence halls, or in on/off campus, USU-sponsored events and activities.This publication is issued in furtherance of Cooperative Extension work. Acts of May 8 and June 30, 1914, in cooperationwith the U.S. Department of Agriculture, Jack M. Payne, Vice President and Director, Cooperative Extension Service, Utah StateUniversity. (EP/DF/02-2002)

Don\u27t Panic-Take Control

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Don\u27t Panic-Take Control

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