In the event of a job loss, inflation, or just reevaluating how to make a bigger payment to a debt, rewriting a household budget can be a challenging step and have a great reward in the end.
How to Adjust When Income Decreases
Set Spending Limits
When it comes to getting comfortable with a new budget, remind yourself that this is temporary and create spending limits. Start with your monthly fixed expenses (mortgage, auto loan, groceries, phone bill, and utilities) and decide on what flex spending can be cut back.
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Communicate Your New Budget with Close Family and Friends
Being accountable with a new financial plan sometimes works best when it’s shared with close family and friends. Details aren’t necessary, but communicating that your new spending budget may have more home-cooked meals and nights spent at a free concert in the park is a great way to let your loved ones potentially support these decisions and help keep spending temptation away.
Let Your Financial Institution Help You Come Up with a New Plan
Financial challenges are easier to tackle with help from your credit union. Whether the plan is to use part of an emergency savings account until the storm passes or talking with a professional about short term financial adjustments, there are options to make this brief life adjustment easier.
Read our Balance Track—Rebuilding After a Financial Crisis article for more information and download the budget worksheet.
