The only way to truly master your rural survival plan without a job is to explore all resources available (cash, goods and services).
It is not as difficult as you think; but you must adjust your monthly lifestyle to accommodate your temporary situation.
Step 1. Calculate how much money is coming in.
Step 2. Organize all of your bills.
Step 3. Calculate where your money is going by categorizing expenses such as:
⦁ Mandatory expenses that support the two basic needs e.g. mortgage, utilities
⦁ Necessary expenses that can be reduced e.g. food, clothing, transportation
⦁ Discretionary expenses that can be eliminated entirely e.g. eating out, concerts, lottery tickets, Cokes, snacks, tolls, parking, tips, newspapers, donations at work. These savings can pay off credit card bills.
Step 4. Set specific achievable goals. When you have a goal, spending less money does not mean deprivation; it means you are moving toward your goal.
Step 5. Add up expenses, then set a goal to reduce those expenses. For example, expenses = $4,000/month; goal to reduce expenses = $3,000 or $2,000, etc.
Step 6. Prepare a survival budget by The Family Living Account Book to help you change your spending habits.
Step 7. Contact your debtors, explain your current situation and ask for alternative, more affordable payment plans.
Step 8. Give God back ten percent of what you earn or receive as a gift. The law of reciprocity reinforces that, because your gift to Him will be multiplied as it returns back to you.
Step 9. Ordinarily, the next step would be to pay yourself ten percent. I suggest that you sacrifice your savings until you are solvent and/or debt free to pay your debts.
Step 10. Develop a bill paying strategy with the help of a debt management service e.g. Consumer Credit Counseling to pay only the minimum on debts, directing the maximum towards your mandatory and necessary expenses.
List all possible net worth resources that can be sold to raise cash to provide food, shelter and utilities. For example:
$ Bank Accounts
$ Piggy Banks
$ Certificates of Deposit
$ Savings Bonds
$ Cash Value of Life Insurance
$ Cash Value of Pension Plan Severance
$ Cash Value of Pulp Wood or Trees on Property
$ Market Value of Home
$ Market Value of Any Real Estate
$ Market Value of Any Business Interests
$ Market Value of Securities
$ Market Value of Car, Boat
$ Market Value of Household Furnishings
$ Stamp, Art, Antiques Collections
Meeting your responsibilities may require you to ask your community e.g. church for assistance and referrals.
Your rural community may offer a wide range of services to assist individuals and families with personal trial, but do not assume they know what you need.
Disclaimer: The use of this plan does not substitute competent advice of a professional accountant.
A penny for a spool of thread
A penny for a needle…
That’s the way the money goes
POP! Goes the weasel.
Tonza Borden is a 20-year finance and digital marketing expert with a passion for coaching and training. Visit her website at RuralMoney.com for exclusive resources and alternative strategies for your financial future. This article was taken from her 2002 Layoff Survival Resources Newsletter. Google+