In life, there is always the chance that every plan that you make will get turned upside down. If you and your spouse made plans counting on one another earning similar wages or counting on your spouse earning more, a curve ball in this arena can cause major issues. Due to illness, career changes, or the needs of the dependents, there is always the chance that you could become the primary breadwinner even if that wasn't the plan. If this happens, here are some quick changes to make to salvage your plans.
Determine the lifestyle changes
Dropping from $80,000 per year to $60,000 per year may call for smaller sacrifices, such as cutting down on restaurants or less shopping. Going from a budget of $80,000 to $40,000 can mean extensive changes such as switching homes, taking the kids out of private school, and decreasing overhead. Figure out just how far the drop in income will be and what needs to go immediately in order to stay above water.
Stabilize your career
As soon as you know that you will be the primary breadwinner, you know that you will need stability. If you are a freelancer or someone who works via contracts, you know that this can be difficult to perform. In order to have income coming in on a regular basis, consider long term contracts or entering into an employee agreement rather than working as a freelancer. Knowing exactly what you will have coming in each month can be crucial in the early stages.
Rework the budget
With job and work changes comes a reworking of the budget. Plug in the numbers using your own income for the budget to see how it works. If you are falling short, cut out the unnecessary parts of the budget, such as fun money, vacation savings, and other unnecessary monthly expenses. Everyone may need to sacrifice in order to get the budget to work for the household. If you need help with your financial planning, contact a company like Duff & Associates.
Talk about the relationship changes
Avoiding talking about how you both feel emotionally can cause a rift between you and your partner. Be honest about how you feel over the new arrangement. If you think that it puts unnecessary stress on you, be truthful about how you feel. Your partner may also feel guilt about the change and be going through their own struggles. Being truthful about your feelings and supportive of your spouse can help both of you work things out in a way that leaves everyone feeling appreciated.Share
30 March 2016
A few months ago, I realized that I was flat broke. I didn't have the money to pay my rent, and I knew that my parents didn't have a dime to lend me. I was in a bad situation, so I decided to start shopping around for a financial services company who might be able to issue me a short-term loan. To my surprise, I was able to find an amazing business to work with that offered low interest rates and acceptable policies. This blog is for anyone out there who has been in a similar situation, and who needs to understand written contracts a little better.