What do you do when income disappears?

April: Well, here’s the problem of the day… and I’m afraid if you’re single like me, you might have more problems than what we’re about to talk about.

Robert: How can you have more problems being single?

April: If you’re in a two-income household and one person loses their job, you still have one income. But if you’re a one-income household and you lose that income… now you’ve got zero.

Robert: Duly noted.

April: So today we’re talking about:
What do you do when one person loses their income?

Step one: start with prayer (and then get practical)

Robert: First thing to do — pray. Pray for guidance and clarity to get through the situation.

But let’s get into some practical steps.

If you lose your job: what to know first

Robert: If you’re fired, a lot of people say, “Just go draw unemployment.” But it’s not always that simple.

In states like South Carolina, which is a right-to-work state, an employer can dismiss you without much explanation — even if you’ve done a great job.

However, if you’ve been working somewhere a long time and they’re willing, ask if they will lay you off instead of firing you. If you’re laid off, you’re more likely to qualify for unemployment.

How to handle severance (this matters)

Robert: If your employer offers severance — say four weeks of pay — here’s something important:

Take it as a lump sum.

Don’t spread it out over weeks. Get it all at once, because:

• There’s usually a waiting period before unemployment kicks in

• Getting the lump sum gives you a head start financially

That timing can make a big difference.

A word to employers: show some mercy

Robert: I’ve been in positions where I had to let people go. Even when someone deserved it, I’ve tried to look at their family situation and ask, “What if that were me?”

Sometimes we want to give people exactly what they deserve. But sometimes… it’s better to show mercy.

There’s an old story about a woman whose son committed a crime. She begged the king to release him. The king said, “Don’t you want justice?”

She replied, “I want justice… but today, I’m asking for mercy.”

That stuck with me.

If you’re an employer, sometimes it doesn’t cost you much to help someone land on their feet.

Health insurance: don’t overlook this

Robert: If you lose your job, health insurance becomes a big issue.

• If you have a spouse, you may be able to join their plan due to a life event

• If you’re single, your main option is often COBRA, which means you pay the full cost of your existing insurance

It’s not cheap — but it keeps you covered.

Also ask about:

• Unused vacation time

• Sick time

• Any benefits owed to you

This is where it gets real: your financial response

Robert: Once you get home and the emotions settle, now you’ve got to make hard decisions.

This is where that emergency fund we’ve talked about becomes critical.

And if you don’t have one — start building one when things are good. You never know when this situation might hit.

Build a “crisis budget”

Robert: When income drops, you need a crisis budget.

That means focusing only on essentials:

• Housing

• Utilities

• Food

Everything else? Cut it.

April: Essentials… not non-essentials.

Robert: Thank you, April. I love it when you help me.

You can’t wish your way out of this

Robert: This is important:

You cannot wish your way out of a hard time. You have to work your way out.

You’ve got to get control of your emotions. If you don’t, things will spiral.

Talk to your creditors (don’t hide)

Robert: Go to your bank. Talk to your creditors. Tell them what’s going on.

Don’t be ashamed.

They may:

• Let you skip payments temporarily

• Offer hardship programs

• Modify your loan

Yes, interest may still accrue — but it buys you time.

Avoid predatory lenders

Robert: Try to avoid high-interest lenders at all costs. Those places charging 36% to 70% interest? They won’t work with you.

That’s why we’ve talked about building relationships with real financial institutions.

Last resort: your 401(k)

Robert: One of the first things people want to do is tap into their 401(k).

Try everything else first.

If you’re under 59½:

• You’ll pay a 10% penalty immediately

• You’ll also pay taxes on the full amount

Plus, you lose future growth.

Use it only as a last resort.

Support each other emotionally

Robert: If you’re married and one of you loses a job, it’s emotional — almost like grief.

April: You have to grieve.

Robert: Exactly.

Give each other support. Ask, “How can I help?” Then, after that initial phase, it’s time to move forward.

Drop your pride — use your network

Robert: Don’t be afraid to tell people you’re looking for work.

Church, friends, community, classes — wherever.

April: Put it out there.

Robert: Get your pride out of the way. Right now, your job is to find a job.

Sometimes, you just have to outwork the problem

Robert: Here’s the hard truth.

If you can’t make it on one $15/hour job… go work two.

When I was 18, I had to support five people. I worked 14–16 hours a day.

Is it hard? Yes.
Will it help you survive and get out of the situation? Yes.

Stop automatic withdrawals immediately

Robert: If money is tight, stop automatic drafts from your account.

Overdraft fees will destroy you.

I’ve seen someone get charged $30 fees on small purchases — turning a $2.69 Coke into a $32.69 Coke.

April: That’s expensive even today.

Understand forbearance and assistance

Robert: Look into:

• Forbearance (temporary payment relief)

• Loan modifications

• State and federal assistance programs

• Housing and eviction support programs

There are resources out there — go find them.

Mindset matters more than anything

Robert: If you don’t fight your way out of this mentally, it will get worse.

People say, “I know how you feel.” Most don’t.

But I can tell you — I’ve been there.

When I was 18, my dad had a heart attack, my mom couldn’t work, and suddenly I had the weight of everything on me.

I didn’t know what to do — but I knew I had to focus and be intentional.

Be intentional or stay stuck

Robert: If you always do what you’ve always done… you’ll always get what you’ve always gotten.

If your life isn’t changing, it’s because your actions aren’t changing.

You’ve got to change the way you think and be intentional about it.

Don’t be afraid to ask for help

Robert: If people have ever said, “Let me know if you need anything” — take them up on it.

Ask for help:

• Financial help

• Childcare help

• Emotional support

Just don’t abuse it. Use it to get back on your feet.

Final thought: effort attracts support

Robert: If you show people you’re doing everything you can — cutting expenses, working harder, trying — people will want to help you.

But if you don’t change anything and keep asking for help, eventually people will have to say no.

Closing

April: When things like this happen, it’s a shock. But instead of saying “that won’t work,” this is the time to say, “Let’s try.”

Look at your resources. You may have more than you think.

Robert: You can’t wish your way out of it. You have to work your way out.