Loss of Income Source with Tips for Getting By

For a quick summary (to catch up those of you who haven’t read the first related post, my dog, Elki, is a mess. She has arthritis, degenerative joint disease, both knee caps out of place (due to her arthritis) and a torn cruciate ligament. Within a year, if she does not have surgery, it is estimated that her other (already bad) knee will go out. Then she will be unable to walk. At that point we will have to decide between paying $3-5,000 per surgery (one for each knee) or putting her down.

We are currently looking at various options for the surgery, but if you would like more information please see Messy Life and Tips for Tough Decisions.

Loss of income source with tips for getting by over image of open book and glasses.

The first section about Elki is especially important because understanding where we are will help with knowing how our loss of income impacts us.

Also, keep in mind that we are not referring to a total loss of income; as will be explained below, gaining a source of income was the cause of this particular loss.

Losing an Income Source:

This is where I hesitate to share. Thus far I have refrained from telling people that I was on Social Security Income for my mental issues. It’s such a controversial topic that I wanted to avoid discussion as much as possible. Now, however, it is one more loop and whorl in my story.

After a year filled with jail and various institutions, I applied for Social Security and was approved. This was the same year I married my husband. To attempt to make a long story shorter, we had very little or no income (other than social security) for over two years while my husband was a student. We primarily lived on loans.

New Job & Over-Payments:

My husband recently started work. We called to report the change, and reported his new income in the Social Security app dutifully every month. However, apparently calling in information and reporting in the app are both allegations – not proven. Social Security would would send the money, then tell us (in the same month) that I had been overpaid due to my husband’s income and that we needed to pay it back. This continued month after month despite calls (which somehow Social Security has no record of) and paperwork filed.

We recently had a very stressful (and long) appointment at the Social Security administration in which we discussed the situation and updated information. The final verdict was that I will lose income due to non-medical reasons, be required to pay back the over payments, as well as lose insurance.

As I require regular psychiatric appointments, counseling and medications in order to remain stable, my husband has put me on his insurance. This means more money out of his paycheck and less money to go towards Elki’s surgery.

The loss of income, along with paying back loans, paying back over payments, and added expenses, coupled with Elki’s health issues make for quite a stressful situation.

4 Tips for Reducing Spending:

Please keep in mind these are not tips focused on a total loss of income. They are more designed for a reduction or the loss of an income source.

If you owe money, try to work out a lower repayment plan. Even if you were paying back the money before losing your income source, the company may be willing to work with you due to the circumstances.
Set up a budget, and save anywhere you can. I heard this on a podcast recently and it is so true: you cannot save money if you do not have a budget. To save money, you have to have at least some idea of how much you are actually spending!
Mindset matters. Buying something discounted doesn’t mean you are saving money – you are still spending. Especially if it’s not a necessity.
Take a second look at your “necessities”. Eating out and cable are not necessities, and there are many public places with free internet.

As you can see, it is totally possible to reduce spending when an already tight budget gets tighter. Even if you haven’t lost a source of income, maybe an unexpected expense popped up (like with our dog, Elki). Reducing spending can help prevent you from having to get a second job or sell off your things.

Did you lose an income source or have an unexpected expense? How are you compensating for it?