How to Cope If INCOME PLUMMETS.

• Position: Brief Article

There are many things a family can't control, but how to deal with a reduction in income isn't one of them. "Don't waste energy blaming yourself or others," emphasizes Janet Bechman, an extension specialist in consumer sciences, Purdue University, West Lafayette, Ind. "Set your mind to deal with the situation as it is, not as you wish it were."

She says quick action is one of the best weapons in handling a loss of income. "People who make changes early are more satisfied than those who make changes later on. They feel more in control of their finances." The first move should be getting all the information about your finances down on paper. "When you write down your resources, assets, and expenses, they become more real. A little knowledge goes much further than either imagining the worst or ignoring reality."

Once you see the figures in black and white, the next step is to plan. "Communicate with family members and include them in the decision-making process. Family members need to agree and work together to carry out the decisions made." Questions to ask include: Which expenses are most important? What can we do without? What purchases can we delay or replace with less expensive substitutes? What talents and skills do we have that might be used to produce additional income?

When communicating about finances, don't forget to talk to creditors. Worrying about overdue bills is one of the most stressful outcomes...