In The Storm

Walked into work one morning, just like every other day. A director comes by the office and asks to speak. The company has eliminated my position. In just a few seconds, life changes. You probably know exactly how this feels. It's a common story today.

I talk quite a lot about budgets. But what does your budget look like when the income screeches to a halt?

Normally, we employ a zero based budget. It's a little different in a storm. We're living off of our savings. So let's start with the expenses instead. List your necessities: groceries, house payment, electricity, phone, water, car insurance, clothes, etc. Don't worry about setting money aside little by little for lump sums. Focus only on what you need this month.

Total all of the expenses. You need that much from your savings. This also gives you an idea of how far those savings can stretch.

Now cut and slash that budget. Can you get by on less? How about more staples (like rice and beans) instead of meat? Eating out stops. Necessities, necessities, necessities. Focus on the four walls. Everything else can wait. The storm should bring out your inner super saver. Let him run wild.

So how many more months did you eke out of those savings? The budget becomes a light house in the storm. Use it. Take charge. And seek God's next chapter in your life.

Do I pay Mastercard?

I honestly can't answer that. Do you have 3 to 6 months of savings? At least keep current - minimums only. Fewer than that in savings? Don't pay Mastercard and go hungry. Mastercard may scream and shout. They'll rant, rave, and threaten you. You'll feel bad. Starvation kills you. Which matters more? Your life or Mastercard's bottom line?

Remember - this is only temporary. The emergency does end. I never encourage anyone to skip out on their financial obligations. You will pay Mastercard every cent. Right now, your family needs you more. And when its all over, Mastercard will still be there.

And keep the house payment current. Let me repeat that... Keep the house payment current. Do not lose your house. Downsize, if the storm lasts more than a few months. Shelter is vital for survival. Let's keep those priorities straight.