Please Help!!!?

Question

Please consider the following hypothetical/fictitious situation. (You are not expected

to relate personally with the situation, but rather be challenged to think of effective

financial strategies to pursue in such a situation):

Your family faces a medical emergency. Due to this situation your parent/guardian

cannot work temporarily. Your family does not have much savings and will need to

find ways to adjust spending.

Given these changed circumstances...

How could your family adjust spending? What action might you take to assist your

family in this situation? How can your family better prepare in the future for

unexpected emergencies that have major financial impact?

Answer 1

First off, everyone should have an emergency fund equal to 6-12 months of expenses in the event of just such an emergency. If you do not have this you must decide which expenses are critical and which are not. If you are going to be late on loans, contact the lender/bank well before hand, explain the situation and get a repayment plan in place for when work commences again. Reduce all non-essential expenses, cancel TV, downgrade phone and internet plans, conserve energy by turning off lights, keeping down the heat. Cut back on transportation by consolidating trips, be frugal with grocery money, get into using coupons.

Answer 2

You would set up two budgets: one for mandatory expenses, and one for optional expenses.



For instance, basic housing is a mandatory. Cable TV or the latest iPhone is not. Buying basic foods at the grocery store is a mandatory. Eating out is optional. Vacations are optional.



Once you have the list divided, toss out anything on the optional side that you can't afford.



Also, try to start saving up a "rainy day" fund containing 6 months of expense money.

Answer 3

Cut everything that isn't needed

Get rid of cable/satellite TV, get rid of home internet, use a pre paid phone and for calls only

No more dining out

Many ways to save

Answer 4

Do not buy things unless needed,

Answer 5

Welfare, free Obama phone, etc.