Step One Assess: Assessment Exercises

"Living within our means" is a goal we all should strive to achieve. It's absolutely vital when you're between jobs and don't have much savings to tide you over. It means spending only what you have and saving up to buy items that you can't currently afford. It means relying on loans only to pay large-ticket items, such as a house or car. It means paying credit card bills in full each month. If you haven't been living this way, now's the time to start. When you're job hunting, you curb your spending!

What to Avoid

Don't go on a spending spree! During tough times, some people think "I'm going to have financial troubles anyway; I might as well buy that DVD player I've been wanting!"

Don't do that! When you're in a hole, look for a way out; don't dig yourself in deeper!

How to Live Responsibly

Here are some suggestions to help you responsibly live within your means when you don't have (or may soon lose) your main source of income:

• Do identify your financial needs using Exercise 5.
  
  
• Don't waste your time pursuing occupations that can't meet your bottom-line financial needs.
  
  
• Do cut down on non-essential expenses such as entertainment.
  
  
• Do continue to set aside a little money for fun.
  
  
• Do postpone expenses whenever possible, especially major purchases such as new furniture.
  
  
• Do take care of all critical needs, such as illness and car repair.
  
  
• Don't buy gifts; give of your time and talents instead.
  
  
• Don't use your credit card or take out a loan unless you have the money to pay it off immediately.

Exercise 5: Financial Needs Assessment

This exercise identifies your current financial needs. Seek only jobs that cover your financial needs AND the taxes you'll need to pay.