 TITLE: How to Adjust to Becoming a One-Income Household CONTENT: Cutting Your Expenses\n---------------------\nWith less cash coming in, you'll probably need to cut your expenses fast. If you don't already have one, you can start your preparations by creating a budget. It doesn't have to be anything complex, just a list of all of your expenses and income. A budget will help you to know exactly how much money comes in each month, where it goes, and what kind of changes you might need to make.\nHere are some tips for effectively reducing your budget:\n*   **Start with your biggest expenses.** If you're focused on cutting back small expenses, like coffee or the occasional manicure, you're not likely to find much breathing room. Instead, start by determining how you can cut your biggest costs, like moving to a more affordable apartment, downsizing your car or refinancing a loan to reduce your mortgage or vehicle payment. If possible, you might consider moving back in with your parents.\n*   **Reach out to your creditors.** Lenders are sometimes willing to reduce or defer your payments when a borrower is facing a hardship. If you think you might fall behind on a payment, contact your creditors right away (before you miss a payment), since they typically offer more flexibility while your account is still in good standing. If you've been affected by the ongoing coronavirus pandemic, you might be eligible for special relief.\n*   **Review your bank and credit card statements.** It's easy to forget about expenses when you're stressed, especially those automated charges that only come around quarterly or annually. Reviewing your account statements can help you find recurring charges and cancel them before the next due date, or at least try to prepare for them. It can also help you find unnecessary spending in your budget.\n*   **Cancel services you don't need right now.** Consider going without subscriptions, memberships or costly extracurricular activities. You don't have to give up all your hobbies forever, but choosing a cheaper alternative, or a free alternative, for just a few months can help you balance your budget. You can always sign up again when the dust settles.\n*   **Reduce or pause your benefit contributions.** Review your pay stub to see if you can cut back on voluntary contributions. Eliminating retirement or health care savings contributions slows your progress and isn't a good long-term strategy, but you may need that cash temporarily for food and other necessities, or to rebuild your emergency savings. As soon as your income improves again or you otherwise get on track, start up your contributions again.\nAs you review each cutback, keep in mind they likely won't last forever, just until your circumstances improve. Instead of thinking of what you'll lose out on, focus on identifying the costs you can immediately eliminate, reduce or put on hold. There will be some short-term pain, but cutting expenses could help you keep a roof over your head and food in the refrigerator. END