For any number of reasons, individuals or
families can find themselves living on less income
than before. Sometimes a pay cut is planned and
sometimes it is totally unexpected. Quitting a job
to go to school, disability, career change, and
unemployment are some common explanations.
Other situations include a two-paycheck family
“scaling back” to live on one paycheck so they can
raise their young children, and persons who cut
their expenses to increase their savings for future
goals.