By:  Joan C. Smith/Volunteer Financial Counselor

A friend recently lost their main job. They had another job on the side providing a service to customers, however, their main job suddenly closed.

This person had two other housemates.

This friend had been concerned for some time about the increasing cost of utilities more specifically the electric, gas, and cable.

When they mentioned their job loss, one of the first thoughts that came to mind was possibly reducing the cable.

I knew that they had at least about 500 channels that they weren’t even watching.

Even though I’ve known this person for several years, I struggled with whether or not I should mention downsizing the cable as an immediate and quick solution to saving money.

Why did I struggle with mentioning this? Was it because I was familiar with their job loss and saw what could immediately reduce?

Was it because I was fearful of mentioning it to them as they would have to present the idea to the other housemates? By the way, the cable was in the friend’s name.

As economic times overall seem to be getting worse, at any given time, you may be faced with trying to assist a friend and/or loved one with some budget cutting solutions and/or financial decisions.

Are you prepared?  Is there any real way to prepare for this?

The answer is Yes and No.

How can that be?

Let’s start with “No.” When we say no, there’s no way for us to predict the economic pulse, let alone our own future financial status. Who’s to say we won’t experience a job loss, lay off, reduction of work force, furlough, etc?

Now to “yes” in the sense of preparing ourselves to speak to a loved one or friend on this delicate subject.

If this is someone you know well, most likely you know their personality. Are they the type that is receptive to an open conversation? Or, are they more receptive to an article, website, or link emailed to them?

Are they open to something like” Have you considered reducing your cable” as opposed to “You need to call your cable company now and have them put you on another plan.”

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Know the person and/or personality type that you are dealing with. That ALONE may eliminate some of the fear and/or anxiety in approaching them.

In conclusion, there are some options as to how to deal with a delicate topic such as finances and money with friends and loved ones.

You may be curious as to how I handled my own situation. Fortunately and miraculously, within a week of getting the news of the job elimination, this person got another offer from a longtime colleague in their field. To date, they are both working together regularly and business (thus far) has been good.

By Joan C. Smith, Master Financial Education Volunteer

Times are tough. Layoffs abound. Companies are cutting back with staff reductions, furloughs, etc. We’ve all heard these terms in the news, we read about it all over the internet. However, hearing and reading about these terms and having it hit a spouse, relative, and/or close friend(s) takes on another dimension.

What if your spouse, fiancé, best friend, etc. loses their job? What if they have no warning or advanced notice?

This happens all of the time. In fact, I have experienced almost more layoffs over my working career than I have fingers! Trying to help, offer advice, etc. can be extremely difficult depending upon the person’s personality, how well they deal with difficulty, etc. It can also be increasingly difficult to give advice when and/or if a person may appear to “have it all together.”

What can one do?

One way to address a delicate situation may be as little as one click away. If having a conversation isn’t an option, maybe having someone else do the talking via the internet is a viable option. Here’s one of many excellent sites that may gently address the issue: http://americasaves.org/blog/605-tips-for-dealing-with-an-unexpected-loss-of-income

Check out the links on this blog and the Virginia Cooperative Extension website for more tips.

Many times, it is difficult for people to consider downsizing by moving to a smaller place.  Reducing and/or downgrading cable services is a huge issue for some, but often may be necessary. Downgrading cable/internet services is as easy as one phone call. It’s a quick and easy process when you need some immediate relief.

If you want to learn how VCE can help you, please contact Jennifer Abel at 703-228-6417 and learn about our classes and one-on-one financial counseling.

By Mohna Shah, Master Financial Education Volunteer

One step at a time http://weheartit.com/entry/9499445

We typically discuss resolutions in January because it signifies a new beginning to us. We fervently generate a list of several lofty and unspecific goals – save money, lose weight, quit smoking, start volunteering . . . and most of those ideas have perished before the end of the month.

While glancing through some back issues of a cooking magazine, I noticed that they started a Healthy Habits section so readers could focus on one change a month. Since it takes at least 18 days to change behavior, this approach seems much more sensible, even in the context of financial planning.

I can’t say I’ve incorporated the magazine’s recommendations for nutrition, but by applying it to my finances, I did experience an improvement in my health. I picked the beginning of the next month, which happened to be November 1^st, and decided I would only eat out (dine-in, take-out, or delivery) three times a week. By selecting a frequency and not a dollar amount, I didn’t have to refrain from dessert or select a less interesting entrée at a fabulous restaurant.

But I did have to think about what going out to eat is worth if I’m going to use 1 of my 3 chances. Dashing out to pick up a mediocre sandwich during work or ordering cardboard pizza as a quick, no-thought dinner stopped immediately. I still celebrate birthdays and have a nice date night with my husband, but I appreciate the food much more.

When December rolled around, I decided to use only public transportation (train or bus) or my own two feet to get around the city that month. No cabs, no rental cars. Miracle of miracles, this Southern gal learned to enjoy walking through the city, taking in the architecture and holiday lights. And – without giving it much thought – I was still limiting myself to eating out 3 times a week. My motivation for these self-imposed directives had been to save money (each one’s value being at least $100 a month), but I was also eating better and walking more.

Almost a year later, these practices are still ingrained in me. There have been a few exceptions – renting a car to visit family and eating out four times in one weekend when my in-laws visited. But my overall habits have changed, and I don’t feel like I’m missing out. I’ve also had some success with non-financial goals  — flossing more often, studying a foreign language — when focusing on one objective per month.

So don’t wait until January when it’s cold and dreary and you’re searching for inspiration. Pick this Monday or September 1^st and make a small change.  There are big rewards to be had.