Military and loss of income

Asked September 3, 2013, 8:27 PM EDT

How can Personal Financial Management Program (PFMP) staff assist service members who have faced a loss of income?

Wake County North Carolina personal finance military families military families - financial militaryfamilies

1 Response

Acknowledge that income loss is very difficult and affirm that there are many ways to survive this kind of financial problem. Begin by developing a realistic budget that accounts for how they lived before the loss of income, including non-monthly expenditures. Then identify the amount of money needed to retain their current life style. Allow them to explore ways to increase income, including selling things, utilizing a skill they already have such as painting, increasing income tax withholding allowances on Form W-4 (if that makes fiscal sense), and utilizing money that comes in unexpectedly as if it was income from their paycheck.Next, review expense reduction, allowing service members to take the lead in this discussion. It is normal for people not to see how they can decrease expenses initially because they have not digested the idea that their life style is going to change. Ask them to revisit decreasing expenses every week, utilizing the spending plan you developed with them. Each week they will see different ways to cut expenses.Finally, connect service members with any resources in the community or through the military that will assist them through this difficult time.