Wednesday, May 23, 2012

Crisis Planning - Frugal Living

Preparedness and Financial Crisis

How preparedness can help us be ready for a financial crisis.

Image Credit: jdurham 
A job change some 30 days ago still has me in crisis mode. It has been a few weeks since I had a predictable income and I have been able to work through this situation because I set a plan in action. 

I thought out what I needed for about a month to save on expenses. I planned out the month of supplying my home with the needed paper goods like toilet paper, paper towels, trash bags, ect, and the goods I regularly use in the bath and kitchen areas. Together with the food set aside in freezer, cans, and freeze-dried forms this period of little or no income has been easier to endure.

This situation is also a seasonal occurrences as I work in an industry that has a good income for about 5 months out of the year during the convention season and then drops to very small paychecks by the end of the year. I have to be prepared to weather these changes in my income. If I don't save against these lean times I am stressed over paying my bills and supporting my family. Saving money and putting aside the foods and goods we live on is my investment in our money season.

Tackle this situation long before it comes across your home's threshold by stocking up on household necessities now. Take a home inventory. Predict your family's use of health and hygiene items, foods and water supply. Putting a crisis mode plan in force long before it becomes your nightmare can be a major comfort in a time you need to worry about something other than spending those couple of dollars on things you could have had stocked ahead of time.

My crisis involved spending cash on certificates, uniforms, materials, supplies, and tools for a new job. With the burden of home stock already set in place, I have been able to make the necessary purchases I needed for my new job requirements and am still able to have a comfortable home. I don't need to worry about my shopping budget week to week at this time because it is already in my stock.

I will replenish the depleted goods in my stock as my income starts flowing back a little at a time. After the basic bills are paid, restocking my pantry and storage deficits comes into play. With about $20 a week over the next few weeks I can be back into my 30 day plan easily and prepare to extend the 30 day plan to 60 days. The only thing holding me back is space at this time.

My next crisis plan? Moving to a new home by the beginning of the year. Frugal living is a way to battle financial crisis gracefully. When we plan ahead in a time of plenty, the lean times can be met with few sacrifices.

Preparedness and other frugal living tips and articles: 

updated 07/16/2012

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