I am fortunate in that this client pays a month ahead of time (due to the fact that the amounts of money involved are reasonably significant). I’ve been paid for this month’s work already, and the new contract takes effect July 1. So I have a little time to prepare for what I consider a freelance layoff. Here is what I have in terms of financial support during this time:

• Some savings to help cover costs, if necessary.
• We don’t spend all of our income each month, so there is a financial buffer.
• We have close to 6 months of food storage if it becomes necessary to economize by cutting back dramatically on the grocery bill.
• My parents are usually willing to provide a loan, and since their jobs are secure, it would be a last ditch effort. But better than using credit. My parents don’t charge interest.

What I plan to do in order to replace the lost income (or at least not add additional strain to our budget):

• Reduce the amount of sod for our yard. We’ll sod only the front and seed the back yard to save money. (Happily, the yard has already been budgeted in and is mostly paid for.)
• Look for new writing gigs.
• Write for a few paid content sites until things firm up. (I don’t particularly enjoy doing this — it’s like when I first graduated from college to be a…cashier. But you do what you have to do.)

I feel blessed, though. A lot of people do not have the luxury of nearly 22 days to prepare for a dramatic drop in income.

What would you do if you were faced with a drop in income?

image source: Esther_G via Flickr

Post from: EveryJoe

Freelance Layoff: Major Client Cuts Back