Preparing for an Income Change: 5 Steps to Take Now

Change is coming—faster than many of us expected.

If you work for the federal government or in a government-adjacent role, you’ve likely heard about the Department of Government Efficiency (DOGE) Initiative and the uncertainty it’s bringing. In real time, thousands of jobs are being restructured, reduced, or eliminated, leaving many scrambling to figure out what’s next.

The dizzying speed at which this is happening has hit close to home for me. Many of my friends and colleagues are directly impacted, and I know the stress of an unexpected income shift can feel overwhelming.

If you or someone you love is facing an income change—whether due to a layoff, job transition, or career pivot—now is the time to take action. Here are five key steps to help you prepare.

1️⃣ Get Clear on Your Financial Baseline

When facing an income change, the first step is knowing exactly where you stand.

✅ What to do now:

•   Log into all your financial accounts (checking, savings, credit cards, retirement).
•   Write down your total monthly expenses (rent, utilities, food, insurance, debt payments, etc.).
•   Identify your non-negotiable expenses (the essentials you must cover).

This isn’t about panicking—it’s about clarity. Understanding your financial picture gives you power and helps you make informed decisions.

💡 Pro Tip: If you don’t already know your Magic Number (the amount you need to sustain your life), now is the time to calculate it. Grab my free Magic Number Worksheet here.

2️⃣ Adjust Spending to Create Breathing Room

If your income is about to change, the smartest move is to cut unnecessary expenses now, before you’re forced to.

✅ What to do now:

•   Review your last 90 days of spending—look for areas to adjust.
•   Identify expenses that aren’t essential and pause or downgrade them (subscriptions, memberships, dining out, etc.).
•   Call service providers (internet, phone, insurance) and negotiate lower rates.

💡 Pro Tip: This isn’t about eliminating all joy—focus on aligning your spending with what truly matters right now.

3️⃣ Stack Cash While You Can

If you have even a few more paychecks coming in, use them wisely. Every dollar you set aside now buys you time and options later.

✅ What to do now:

•   Shift extra income (bonuses, tax refunds, side hustle money) straight into savings.
•   Pause aggressive debt repayment (for now) and redirect extra payments to your emergency fund.
•   Sell unused items for quick cash.

💡 Pro Tip: If you have paid time off (PTO) or vacation days you can cash out, find out your employer’s policy now and plan accordingly.

4️⃣ Explore Alternative Income Streams

If you suspect a job loss or income reduction is coming, start brainstorming new income sources now. The sooner you start looking, the more choices you’ll have.

✅ What to do now:

•   Update your resume and LinkedIn profile.
•   Reach out to contacts in your network for contract, freelance, or temporary work.
•   Consider monetizing a skill you already have (consulting, tutoring, virtual assisting, selling a digital product).

💡 Pro Tip: Even short-term gig work can help bridge the gap while you find your next move.

5️⃣ Take Control of What You CAN

One of the hardest parts of an income shift is the uncertainty—but the antidote to uncertainty is action.

✅ What to do now:

•   Make a plan for what you’ll do if your income drops next month.
•   Talk to your support system—family, partner, trusted friends.
•   Use available resources (unemployment benefits, hardship assistance programs, financial counseling).

💡 Pro Tip: Feeling stuck? Book a free clarity call with me here and let’s create a plan together.

Final Thoughts: You Are Not Powerless

A sudden income change can feel like the ground is shifting beneath you. But you have more control than you think.

By taking small, proactive steps now, you can set yourself up to weather the storm and come out stronger on the other side.

If this blog was helpful, share it with someone who needs it. The more we support each other, the stronger we all become.

And if you want step-by-step guidance on taking control of your finances, join my free How to Afford Everything 101 class here:

👉 Darlabishop.com/101

You’re not alone in this. You’ve got this.