Before You Become Homeless.

Today, it is foolish for men and women to live with their head in the sand when it comes to their future. All marriages end one of two ways--Either by death or divorce. I have heard the following statement quoted and repeated time and time again, "We are all just one paycheck away from becoming homeless." Yet, most people play Russian Roulette with their futures, refusing to acknowledge that a sudden illness or a loss of a job could create a chain of events that ultimately can lead to homelessness.

For those who are now finding themselves homeless, I am truly saddened. Yet, there were thousands of things that could have done before getting to that point. Utilizing these options could have kept many from becoming homeless. These are the issues that need to be addressed today: What to do before you become homeless.

The first, and most important point is a reality check. Homelessness is happening to middle and upper-middle class white collar workers at an ever increasing rate. Even corporate executives and professional people are being hit hard by this phenomena. The reality check is the most important way to prevent the problem and should be done long before the crisis arises.

I believe it starts with too much house. From my research I have found that most families purchase homes that require two incomes to maintain. That is the first, and most crucial link along the homeless chain of events. Whether because of ego, or through social pressures, or status seeking, or denial, many of us today relate self worth through possessions and image. This faulty way of thinking sets people up for financial trouble, not to mention, produces stress and worry that often breaks up families, rather than bringing them together.

The old criteria used for figuring budgets is, even today, a wise path to follow: Spend no more than 25% of your income on housing. Make sure that it is net income, not gross. Trying to keep up with the Jones never brought happiness to anyone but the Jones. For married, as well as single women and men, it is crucial to plan ahead. What if , is an important question to ask yourself. What if your husband died? What if you got a divorce? What if you or your husband became ill? What if the medical bills ate all your savings? There are many questions that need to be answered. We talk about keeping a nest egg for emergencies, yet me don't take the time to create an emergency plan that can be implemented before a situation becomes a crisis. Waiting until the family is emerged in the crisis is too late. Most of the energy needed to make the critical decisions is being used up in just surviving. So, ask yourself the important questions. Decide what your savings goals are. Decide how long you try to maintain the status quo before you start to really act on your emergency plan. Do you try to maintain your normal living standard or do you put the house up for sell and try to get out from under it before it is taken away? How long can you survive on your savings before you must cut your losses and let your home go? What happens if you just walk out? Check out bankruptcy laws ahead of time. Talk to family members and ask for their input. Check with relatives and ask them for a commitment if such a crisis should hit. Can you stay with Mom, or Grandma, or Aunt Jane? Will your best friend help? What about your grown children, would they be willing to help in an emergency? Learn about all your options before it happens.

Did you know that you can purchase homes for under $10,000.00? I know that in Oklahoma this is possible. They are fixer-uppers, but some will sell for as little as four or five-thousand dollars. Many are just sitting vacant because there is no work in the area. But for someone who could end up homeless, and is sitting in a home with a $500,000.00 mortgage, at least your would not be homeless. You would have a roof over your head. Of course, this may mean relocation. But look at it as a temporary solution to a temporary problem. It buys you time and provides shelter for you and your family while you are still able to utilize your remaining funds. You can later rent out or use as second vacation home after the crisis.

You may want to even consider purchasing a good, used motor home or camp trailer that can serve as shelter in a pinch. Most of us don't think of these solutions during the crisis. We don't let go of our old lifestyle until all of our assets are sucked dry. By then, it is too late. One other important item is the ability for future employers to be able to contact you. You can provide this necessity with an answering service or a beeper or cell phone service. If you own a computer and printer, don't give it up. It is an important tool in job searching. It will provide you with the ability to create resumes at very little cost.

If you are proficient at a skill or trade, there are Contract Firms who hire contract employees. There are Contract Services firms, such as Headhunter.net, Monster.com, or our favorite, Contract Engineering Weekly, which help the busy tradesman make contact with the Contract Firms which have work. The work is usually short term, lasting anywhere from a few days, a few weeks, a few months, or, occasionally, a few years, but can be a life saver when you have been unable to find a local position that can meet your bills. You must travel wherever the work is. If you have a travel trailer, you can seek out RV Parks near your work which allow you to rent month to month. If you rent apartments, you can rent furniture while you are there, but that is expensive.