Whenever income goes up or down, it’s a good idea to talk to a financial expert.

Any change in income—up or down—calls for a review of your daily finances, investments, and retirement planning. Here’s what to do if you have a loss or gain in income.

Handling a loss of income

There are two types of income loss: planned and unplanned.

For sudden income losses, immediate action is necessary. First, take a financial inventory and review daily expenditures. Next, seek new sources of income. You’ll also want to communicate with lenders before you get behind on bills. Get more tips on dealing with unexpected income loss here.

After addressing the immediate steps above, consider enlisting outside help. Consumers members have access to free financial counseling services. Qualified counselors can help you avoid bankruptcy, foreclosure or repossession, as well as help with debt repayment plans and improving your credit score.

A financial counselor can also help equip you for a planned loss of income—like an upcoming retirement or the decision to become a stay-at-home parent. Talking with a counselor as soon as your income declines is the best time to recalibrate your finances. Fast action can help avoid extra debt as well as late fees and penalties.

Managing increased income

Promotions, bonuses and inheritances can drastically change your financial standing for the better. Before your upgrade your lifestyle, however, review your long-term financial goals.

More money in hand opens up new opportunities for investing. Whether you are DIY investor or prefer to have someone else manage your investments, as a Consumers member you can get free investment planning services.

A boost in funds can also have a profound effect on retirement planning. Perhaps you’ll be able to retire early or enjoy a more luxurious retirement than previously planned. You might also face higher taxes. Please consult your tax advisor about your specific situation.

Remember, any change in income signals that it’s time to review your finances and adjust your strategy to align with your long-term goals. Take advantage of all the free services available to you as a Consumer member.

Consumers provides banking services for more than 100,000 members. If you have banking questions, call us at 800-991-2221. We make it easy to bank how you want, when you want.