The first thing to take control is the Financials. When you are faced with challenges in your income side of the equation, you certainly need to look at the expense side to balance if off.
The last few topics I talked about were FAITH, THINK & QUICK INCOME. Yes, you must have faith. Once you lose faith, you lose everyting. You need to really think of your next step of action. One urgent step is to control your finances. Next step is to decide to be an employee or to seek out to be self employed or start a new business.
Let focus on the finances now. While most people may not practise it. It is important that you have a Income Statement or Profit & Loss statement. In this case, if you are out of job, you Income Statement is one sided. Only expenses.
So, now you need to look into your expenses. You need to list down in detail what are you monthly expenses. All the daily and yearly payments will be summarised or pro-rated into monthly expenses for easy management. Daily expenses are summed up and average value is use. These includes housing payments, transportation, food, school fees, insurance, utilities, taxes, and all other expenses.
After summing up the monthly expenses, using the amount of cash you have, you will able to work out your wealth indicator. That is how many months you can survive with your current cash you have. With that, you will be able to know your own position.
After doing this exercise, you will be able to know what to cut when you need to.
So, the Urgent thing to do is to develop survival skill number four: MANAGING YOUR EXPENSES!
Who says being retrenched is not stressful. It certainly is stressful. But with faith and doing appropriate actions, you will get to where you are.
Survival Skill Number Four: Managing Your Expenses.
