Dealing with Financial Hardships When You Have to Take Time Off from Work
Many families today are only one paycheck away from financial hardships. When you are caring for a child with special needs, and trying to hold down a job, you worry what will happen if you have to take time off work when your child is ill.
Your life is likely already stressful; we do not have to tell you that. The added stress of not knowing how you will pay the rent/electric bill/ water/phone or put food on the table can send you over the edge, especially at a time when you are also worried about your child.
How do you manage to keep afloat during these challenging times?
Hopefully, you can use some of the tools below to help meet your financial obligations.
Where Do You Begin When Facing Financial Hardships?
The best thing that you can do right away is to sit down and evaluate the situation. Start out by making a list of all expenses for the next week and month. Prioritize these expenses and number them in order of importance and when they must be paid.
What can you put off for a month or longer? Perhaps you can call your credit card lender and explain the situation or ask for a lower interest rate or term extension. You never know what they can do, or will do, until you ask.
Speak with your landlord, mortgage holder, auto loan company about payment options. You may be able to restructure your loan. Perhaps you can pay a portion of a bill at a time, rather than the full amount all at once. Utility companies will also try to work with you when you ask.
Can you get rid of some of the extra cable or satellite stations while you get back on your feet? Many people can cut their cable bill in half or buy a $10 antenna and “cut the cable-cord” completely.
Look to see where you can save money, whether it means eliminating outside meals or that designer coffee you buy each day.
Finding ways to save money and lower your expenses is crucial. If you use a cellphone, maybe you can cancel your landline. Most of all, make the calls. Avoiding the expenses will not make them go away – it will only worsen the situation.
How Can You Find Extra Money?
In a perfect world, everyone would have six months of expenses socked away in a bank. The world is not perfect, and many people have nothing put aside for a rainy day. If you are in the latter category and still working, start to put away even a few dollars every week. You need to prepare yourself for an emergency now.
Be careful about taking out cash advances from credit cards as that can worsen your situation. If you own a home and there is equity in it, that is one possibility for providing extra money while caring for your child.
Another option is to speak with family or friends – but be careful, borrowing money with no clear time for paying it back can strain a relationship.
If you have any type of investment or 401(k), you may be able to liquidate or borrow those funds. Ask about the penalties or tax consequences of doing such a thing.
Next, look in your closets. Perhaps you have items you do not use that you can sell online.
Do you have any talents or skills that can be useful to other people? This is the time to explore those options.
You may also find that being a sales rep for a company that sells candles, makeup, or other items can bring in a little extra money. There will likely be a small financial outlay at first, but if you get involved while you have a job, it may tide you over when things get rough.
Take Advantage of Assistance Programs
Your employer is not required to pay you while you are out on the Family Medical Leave Act (FMLA), but they must hold your job open for you for twelve weeks. If you do take advantage of FMLA, you will not qualify for unemployment compensation. However, if you lose your job, you can file for unemployment providing you meet certain criteria. You will not qualify for compensation if you are unable to work due to caring for your child.
Related: Facing the Challenges of Balancing Work and a Special Needs Child [1]
Look into food stamps – the Supplemental Nutrition Assistance Program (SNAP) – to help provide food for your family.
Opting for a debt consolidation program may help if you fall three months or more behind on payments.
You may also qualify for a family leave loan with a private company while you are caring for your child.
Some workplaces offer programs for employees who are going through challenging times. Other workers can donate a sick or vacation day to help provide funding. Do not be embarrassed to ask your employer about available options.
Of course, advance planning when not in a stressful situation is the best option – although not always possible. Just take a deep breath, put options down on paper, and methodically go through your list.
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Helpful Articles
- What Do You Do When Financial Hardships Hit [3]
- Facing the Challenges of Balancing Work and a Special Needs Child [1]
- Creating a Financial Game Plan | A Milestone-Based Guide to a Special Needs Plan [4]
- 9 Things You Need to Know to Maximize Your Child’s Benefits [5]
- Social Security Benefits: Understanding How To Work? [6]
- Does Your Child Qualify for Supplemental Security Income? Dispelling Misconceptions [7]
- Special Needs Planning: What is a Special Needs Trust? [8]
- Able Accounts and Taxes: What Special Needs Families Need to Know [9]
- What the Federal Tax Overhaul Means for Families with Special Needs [10]
- Taking Control of Your Family’s Finances Following a Divorce [11]
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This post originally appeared on our July/August 2018 Magazine [25]