Released April 3, 2009
LITTLE ROCK, Ark. - If your salary has been reduced or your job has been cut, you're not alone. Today's economic recession has affected countless Americans, and an estimated 90,000 Arkansans have lost jobs because of it.
Even in less troubled times, about one in four families needs financial assistance during a given 10-year period, says Laura Connerly, extension family resources management instructor with the University of Arkansas Division of Agriculture.
"Though circumstances may seem beyond your control, you can change some aspects of your situation. In turn, you can reduce your anxiety by starting to take charge now," says Connerly.
First, she says, think about what you buy and why you buy it. Set some rules and eliminate all unnecessary spending.
Then take stock of your family's income and consider whether others in the family - including teenagers and stay-at-home spouses - might be able to enter the workforce. And consider what you can do to boost your income without a regular job.
When Karen E. Segrave's employer, the Arkansas Democrat-Gazette, asked for volunteers willing to reduce their hours to help with the company's budget crunch, she stepped forward.
Segrave, a photographer at the newspaper, sometimes shoots weddings on Saturdays, and she requested that she be allowed to take the reduced hours on Saturdays so she could make up much of the difference in her income through her side job. Her supervisor approved that arrangement. In turn, she remains flexible enough to go in and help out if things are busy at the newspaper on a Saturday when she isn't scheduled to photograph a wedding.
"I've been doing whatever I can to make myself as recession-proof as possible," says Segrave.
Connerly suggests that, if you're faced with a financial crisis, you should look at your belongings, including your home, and determine what you might be able to sell to bring in cash and make ends meet. Also consider, she says, whether financial assets - such as certificates of deposit, money market funds, stocks - are available to pay bills until you can increase your income.
"Look at the things you can do today - not the things you can't do. Make a new plan. Your goal is to find ways to live within your current income," Connerly reminds.
"If your income reduction is drastic and will last more than a couple of months, something has to change. You can't keep spending the same or you will use up your assets, plunge deep into debt, and create ever bigger problems for yourself. Don't try to hide from the reality of your current financial situation. Worry is always worse than facing reality. Regain control by taking a hard look at your budget and finding ways to make ends meet."
To that end, she recommends:
- Identifying basic needs, with food and shelter at the top of the list.
- Prioritizing your family's needs, ranking bills according to the degree of risk involved with non-payment. Your best bet is to make rent or mortgage payments, utilities and insurance the first priority, followed by minimum payments for credit cards and other debts and then by doctors, dentists, hospitals and retailers.
- Reducing personal and household expenses to the basics, and preparing - and following - a written budget. You might switch to a less expensive phone service plan and cancel either wireless or landline service rather than keeping both.
- Stopping the use of credit except for emergencies.
- Negotiating new terms with creditors, even showing them your budget so they know you have a play for repaying your debts. Contact them before you miss a payment, if possible.
- Minimizing personal and family stress by maintaining good health with nutrition and exercise. It's important to relax and have fun, so find free or inexpensive entertainment, like going to parks and the library. The library also may provide information on job search techniques and resume writing.
Some community resources - including churches and crisis groups, local family or human service agencies, mental and health crisis centers - may serve as short-term solutions to financial shortfalls. State agencies, such as the Women, Infants and Children program (WIC), can offer more long-term assistance.
"These resources were created to assist consumers during times of economic crisis," says Connerly. "You should feel no stigma attached to accepting temporary help from your community. Even businesses sometimes receive subsidies during tough economic times."
For more information about saving money, finding jobs and finding agencies to help, contact your county extension office or visit extension's Web site at http://www.uaex.edu and selecting Families and Consumers, then Money.
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http://www.uaex.edu/news/april2009/0403jobs.htm
Contact: Lamar James, (501) 671-2187, ljames@uaex.edu
