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Weathering a Financial Crisis

You are sitting at your computer on a Friday afternoon busily finishing up your last project of the week.  It seemed a little peculiar that you hadn't been given those typical "due yesterday" projects as the clock rolls to 3 p.m.  This doesn't bother you much because you are more content thinking about that get-away weekend you and your wife have been planning for months.  Suddenly, your boss calls you into his office. "Here it comes," you think to yourself, "that project announcement that will keep me here till all hours of the night."  In the usual office setting you sit down.  The unforeseen happens, "Your position has been eliminated, you have an hour to gather your things."  Like an image from an Ally McBeal show, your jaw literally drops to the ground.

Here are some tips that can help you focus on the reality of the situation by cutting expenses and managing your budget:

  • Minimize your budget.  Sacrifices are hard to make, but in order to keep the funds manageable without sinking further into debt, you should think about eliminating the following:
  • Cell phone - Learn to go without; they are not as necessary as people think.
  • Dining out - Venture into the kitchen; you never know what you may be able to create.
  • Extracurricular activities - Beauty sessions and golf lessons can be put on hold.
  • Spontaneous shopping - Patience pays; learn to wait before purchasing that "something" and you may find that it is not as necessary as you first thought it to be. 
  • Cable TV - Reduce your monthly bill by getting rid of premium cable package and order standard cable.
  • Turn off the lights and take shorter showers.  A smaller utility bill depends on this!
  • When you visit the supermarket, purchase products that are on sale or use coupons.  Don't rely too much on higher-priced, smaller volume goods.
  • Investigate your rates and fees.
  • Check your interest rates on your credit cards. Find a card with a lower rate and transfer your balances.  Review the credit card introductory invitations you receive; they can save you money in the long run.
  • Make the effort to visit your own bank's ATM when you are in need of cash.  The average bank withdrawal fee is $2.00. Depending on the number of times per month you make cash withdrawals, you can save over $25 a month.

Remember, it is never easy for anyone in this situation but the challenges that lie ahead for you are not uncommon.  What you need to remember is to keep a level head, act immediately and plan your finances accordingly.  Hesitating and putting your budget planning aside will only make things worse. You owe it to yourself to remain confident and in control.