If you and your family are faced with the prospect of making do on one income when you're used to two, the task of cutting your budget may seem impossible. Financial planners suggest that you take these steps before you lose that income:
-Draft a budget for the lower income level and make sure you and your spouse agree on the cutbacks. Live within your new budget to get used to the new lifestyle.-Stop contributing to your investment accounts if necessary.
-Take the money you save and eliminate or reduce your debt. Pay off high-interest credit cards first.
-Build up your emergency savings to six months' expenses or more, depending on how much income you'll lose.
-Buy medical, life and disability insurance policies if necessary.