If you found out your income was about to be cut in half, what would you change?

[larknm]

Say you found out that your already fairly meager income was going to be sliced in 1/2 in a year and you already do every frugal thing you've been able to think of, and there is no way to up the income coming into your home--if that were you, what would you do differently? What would you give up? As you can maybe tell, this is not a hypothetical question, but a real question.

[MamaM]

Well our income just dropped by 2/3 as I quit my soul sucking job. We have evaluated EVERYTHING in the bill arena. We downgraded the phone and TV, I am hanging clothes to dry instead of using the dryer, simpler meals w/less meat, putting in a garden, driving just 1x a week for all errands, 2x for son's baseball games. I sold some items on ebay such as nice designer winter coat and never worn heels. Start seeing what you are living on now and where you can cut back. I am still working on a few other things as well. I am looking for another job but don't expect to find anything anywhere near what I was making but if I can find something in the $35,000 a year range, we will be just fine. I always lived frugal and don't mind it a bit. Good luck and (((HUGS))).

[treehugger]

Say you found out that your already fairly meager income was going to be sliced in 1/2 in a year and you already do every frugal thing you've been able to think of, and there is no way to up the income coming into your home--if that were you, what would you do differently? What would you give up? As you can maybe tell, this is not a hypothetical question, but a real question.

Larknm, I feel for you. This is a tough situation, and I have been there, so I get it. My only advice at this point is this: I know that you feel that you have cut expenses in every way possible, but you may be too close to continue to look objectively. It might be time to ask for outside help by specifically posting whatever parts of your budget you feel comfortable posting, so that fresh eyes can (kindly) pick it apart. This really helped me when I was in your position.

Same is true for the other half of the equation, the income. Others may be able to suggest ways you haven't tried or thought of yet, if you post what you have tried.

Good luck!

Kara

[miradoblackwarrior]

I agree with treehugger. Get thee to social services, get food stamps, heating help, whatever. Unless you have family or other resources to give you a leg up, a cut like that takes a lot of work to adapt to. A little help goes a long way.

Susan

[Mrs-M]

Saying a prayer for you, Larknm, in hopes of you finding the strength and wisdom to plod ahead.

Downsizing, would definitely be in the books in order to scale-back expenses, if indeed, expenses (taxes, upkeep), could be reduced to help mitigate the circumstances. Also, a push to purge all unused, old, or no longer needed items/things in and around the home for cash.

[pinkytoe]

We have been through this before - twice now - so feel your pain. The first time we lost our house which is what led me to simple living so was really a blessing. The second came out of the blue and we had to cut fast - no eating out, canceling subscriptions, etc. Even now, we are living on one income and stashing the other - just in case. I guess if it happened again, we would file for unemployment and cut to the bone until new income was secured. I hope it all works out for you.

[jasuko]

I would find a way to live with others and cut living expenses by sharing the costs. For my personal situation, there is very little I can cut anymore. Cutting the internet would save me only $17 a month. The cell phone bill is the only thing that's really "extra." For me, sharing my home with one other person would help a lot.

[Kat]

(((larknm))) This is a tough situation, and one DH and I went through when I decided to quit my job and stay home with our daughter. We now live on less than half of what we were living on before. It was quite an adjustment and still isn't easy. What helped us the most was looking at every single expense we had. Nothing was "off limits." We asked ourselves if we could find cheaper housing, sell a car, eat more meatless meals, lower the thermostat even more, get rid of internet, get a paper route, etc. We didn't take action on all of those ideas, but we at least investigated each option.

I second what Kara said. If you are willing to post your budget, perhaps some of us can brainstorm some ideas with you. It is hard to be objective with your own budget sometimes, especially when you are feeling fed up or frustrated with it.

Once you determine what your new budget will be, you might consider trying to live on it now. That way, you will have some time to adjust to the new normal and save some extra money before the change comes.

Hang in there! This is a stinky situation for sure, but you aren't alone! If there is one thing I have learned, it is that the folks here are resourceful and supportive! :-)

[Blackdog Lin]

You are in my prayers also going through this.

We had a similar situation years ago, and what I remember was similar to what Kat posted: looking through every single one of our expenses.

- no new clothing of any kind
- no eating out, and getting even more creative with cheap meals and leftover usage
- gave up all subscriptions
- downgraded TV and phone services
- got requotes on all our insurance policies. Saved hundreds on this one.
- gave up one type of insurance. Felt a need to have it, but we had to do what we had to do.
- gave up extras like bug spray service and water (non city) delivery service.
- got even more creative in thinking of wants vs. needs.
- learned to enjoy the backyard i.e. staying home. It's difficult to spend money if you don't leave the house (internet shopping excepted of course). :)

Wishing you strength through this.....

[artist]

We had our income cut by 2/3rds when dh switched career paths. We got rid of cable, cut land line, bare bones cell phone, don't eat out, frugal meals, line drying, got rid of car with payment and got a beater etc...

If it were to happen now, we would need to sell the house and move into a small one room or one bedroom apt.

[poetry_writer]

My income was cut to ...nothing, after losing my job. I live in an efficiency apartment, have a wal mart straight talk phone, buy little that I dont truly need and I can only think of two things I could truly cut out..my net service , which is $27 a month (I could use hotspots), and cut out the occasional meal out. The meal out for me is like a truly relaxing experience that I spend time with friends, so I consider it therapy...:o)........I thank God my parents taught me how to live frugal.

[awakenedsoul]

You've gotten some great replies. I would look for a side job and start it now. I did that when I was struggling. It brought me in an extra $200.00-$250.00 a week. That solved my problem completely. I also read the Dave Ramsey books and worked on the baby steps. The job I got was selling produce on a farm. They gave me $15.00 of free produce every week, too. It was great. Right away I received a windfall. So much of finances in psychological. I listen to Dave Ramsey's radio show, too. It's interesting and helpful.

[Fawn]

larknm--I think that you have gotten some good advice above. If I remember your situation correctly (and forgive me if I have confused you with another poster) you have two abodes, one in San Francisco and one in NM, but you don't go to the cabin because of the pets.

If it was me, and my income was cut in half, I would reduce to one home and find really, really good homes for the pets. As I recall, the pets bring you a lot of joy, so maybe you could find a home where you could visit. If I remember, you can't work due to health issues, buy could you volunteer where there are animals?

So sorry that you are having to make these choices.

[Wildflower]

This happened to DH and I about 6 years ago very unexpectedly due to health problems. We scrutinized our bills and cut out everything we could do without. It helped that our small home was paid for and we had no other debt.

First thing we did was downsize to one vehicle. That was a no brainer for us. We gave up cable TV, and bundled our phone and internet service which saved us alot. We gave up traveling, except the occasional 3 hour car trip to visit our oldest DD. We gave up eating out, except for a once a week cheap meal at local ethnic restaurants. We insulated our home thoroughly, turn the thermostat down in the winter and up in the summer, dress accordingly, and we have saved alot on our utility bills. We also monitor water usage closely too. We have rain barrels that are quite helpful when we're not in a drought like we are now... We line dry our clothes whenever possible.

I make a monthly food menu and budget that I don't deviate from. It is important to me that we eat well to stay healthy. We eat many meatless meals and when we do have meat I can usually stretch it into another meal or two. We grow a veggie garden and can the surplus. We continue to feed our dogs/cats quality food too, helps keep the vet bill down in my opinion.

We never once thought of getting rid of our pets. I would do without most anything before I would give them up. They are members of our family. They provide us with entertainment and exercise too. A long walk or two daily keeps us feeling good both physically and mentally.

We rarely ever buy new clothes. We take care of what we have. We buy a new pair of shoes about once a year.

For entertainment we enjoy the long walks with the dogs, going to our local library, as we both enjoy reading alot. Love to listen to music together too. Life is sweeter these days, we take nothing for granted, and enjoy the time we have together. Simple pleasures mean alot.

We lost about 3/4 of our income back in 2006 never to be regained. It was shocking, but we have survived and continue to thrive living on a much lesser amount. It can be done. I'm sure there's more I could add to this when I think on it longer. I wish you well, larknm.

[ctg492]

I am sorry you are facing this.

[larknm]

Thanks for all the experiences recounted of those of you who've been through this--it shows me I can too. Thanks for all the specifics mentioned--some I've done or thought of,some are new. Thanks for the empathy and good wishes. I'm going to print out all my bank reports from the last year to give me more ideas. I'll let you know what changes I pick.

[Life_is_Simple]

There was a point where I had limited income. One thing I did was made a spreadsheet, where everything that come in counted as income. I sold some books on Amazon, that counted as income. I got an invitation to a car dealer to test drive a new car and get a $75 visa gift card - more income. I did some online survey for a company I was a customer of - $20 income. Once I set up the spreadsheet and decided everything that came in was income, it was uplifting. It felt like the Universe was sending me a little here, a little there.

It may be that that was the time I was reading the book "Creating Money: Keys to Abundance" by Sanaya Roman and Duane Packer. I should re-read that.

Something I have been doing lately... I have data 2004-present in Quicken. I had some previous data in an old Mac Quicken version. So I input the year 2000 data into my current Quicken. I knew that 2000 was a year that I didn't spend much money, and wanted to see how I did that.

One of the big categories was Food/Groceries. One thing I am doing now is tracking not just at the "Food" level, but at the category levels: bread, dairy, meat, vegetables, yogurt, nutrition bars, other. I may do this for just a few months to see what is going on. But I think that just tracking at this level, is reducing the cost already.

Also, I had posted an earlier thread where I was trying to build up my supply of supplements, and ended up reducing the cost by 30%+ while doing so. I created a spreadsheet of the price of each supplement at particular online stores, then bought at the lowest-priced places. So something about pre-planning worked in this case.

The supplement spreadsheet is a lot like the case where some people will have a grocery price list of how much things are at their various nearby stores. Then they will buy based on that price list. Or... make a list of what you paid for certain items in a little notebook, then try to beat that price the next time.

That's all I can think of.

[Float On]

We've had several times where we've lost 1/2 income over the past 20 years.

Inventory your current pantry/freezer/fridge. Come up with as many simple meals as you can from what you have on hand and you may find that all you really need for a week or a few weeks are the bare basics. Grocery/food out is our biggest category and one I really need to cut down on too.
I diluted everything - dish soap, laundry soap, shampoo, etc.
I cut down to one car once. Combined all town trips to once a week or less.
I called insurance to cut the bill on auto and others.
I sold everything I could on Craigslist.
I signed up with a temp agency and worked a day or two a week (some fun jobs - working an art auction, some not so fun but a good workout - cleaning vacation condos or hotel rooms)
Some people sell plasma (its a 40 mile one way drive to the nearest so I haven't done that).

[Gardenarian]

Lots of good ideas here. I am lucky to have family that would help me out through hard times, and I would not be ashamed to ask.

[reader99]

I've had almost no income for a while.

I rent out the master suite of my two bedroom condo on www.airbnb.com (http://www.airbnb.com) and that helps tremendously.
When I had a car I did some secret shopping with www.marketforce.com
I make a little money, and have fun, working tasks at https://www.mturk.com/mturk/welcome

I junked the car
I eat less meat, more eggs
I use baking soda and vinegar instead of commercial cleaning products
I use cloth towels and napkins vs. buying paper

I have no pets or children
I search online for alternatives to anything I'm about to spend money on
Luckily I don't drink, smoke or gamble

[catherine]

Well, my approach is closer to awakened soul's (maybe because we're both Dave Ramsey people): cut what you can and take the suggestions seriously, but in my mind the first thing I would think of--way before moving in with people or getting food stamps--is how to replace the income.

Take a few months to brainstorm and research income opportunities, narrow it down to the best ones and do something to keep the income afloat. If you have a YEAR you have a great opportunity to explore how to replace that income before it goes away.

[try2bfrugal]

If you are going to be living on Social Security, then living in a very low cost of living location is one consideration since your income is the same no matter where you live. This can be in or outside the U.S. There are many U.S. retirees living in Mexico for the lower costs.

The Faircompanies videos have many creative ideas for living super cheap, especially in tiny houses, like this one -
http://faircompanies.com/videos/view/shotgun-shack-redux-mortgage-free-in-320-square-feet/

One family living on SS bought a house in a small town for 49K -
http://www.seniorark.com/Less%20than%20a%20shoestring/Less%20Than%20A%20Shoestring.htm

Manufactured / mobile home are often lower costs places to live.

Then there is always living like college kids and having a lot of people in one house sharing expenses.

Larknm, form your past posts I think if I were in your spot I would start with trying to find a way to lower my housing costs. Or you could look for a job. Even working online doing making $5 an hour at places like fiverr and mturk at 2,000 hours a year between 2 people could mean an extra $10K a year. Add in some blogging income, mystery shopping, seasonal work, pet sitting, selling crafts on etsy, signon bonuses from opening checking new checking accounts and credit cards, test drive car offers ($25 - $50 a person), cash back credit cards, focus groups, reselling stuff online, online surveys for gift cards, free after rebate stuff, Staples deals, and it really adds up. You don't even have to do much research on how to do the online stuff - just look at forums like slickdeals and fatwallet and people post little money making ideas there all of the time. Last month our family made over $500 in cash and merchandise just from little odds and ends things like a focus group, selling some stuff to Amazon for gift cards, ink recycling rewards, cash back charge card programs, free birthday meal signups, etc.

[Wildflower]

Just cutting down to one residence and one car would save larknm a bundle. I thought that's what everyone did in retirement to survive anyway. I know that's what we had to do. And I never understand anyone retiring while they still have a mortgage. That just doesn't make sense. Not trying to be critical or judgemental here, just realistic....

Also living somewhere where the cost of living is high doesn't make sense either. We live quite cheaply here in the Midwest. We're near a major city with great shopping, museums, concerts, etc. It is not boring here. We also experience all four seasons, which I love....