NEW YORK, NY - AUGUST 22: A homeless man begs for money on a Manhattan street on August 22, 2014 in New York City. According to the Department of Homeless Services, the number of homeless people in New York City has risen by more than 20,000 over the past five years. Newly elected Mayor Bill de Blasio, who ran as a liberal, has released a $41 billion plan to create 200,000 units of affordable housing across the city. Critics say the plan is too far off and that more immediate solutions need to be implemented to halt the increase of homelessness. (Photo by Spencer Platt/Getty Images)

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Take stock of your life. What do you have to lose? There are all kinds of life changing events that happen to people every day.

One minute you have it all; the next you’ve lost it all.

Something as simple as losing your job, getting laid off or fired can have you on the street in less than six months. Credit cards maxed out, home in foreclosure, car repossessed, IRS freezes what assets you did have for back taxes you owe along with student loans.

You also no longer have health insurance or a prescription drug plan.

What Would You Do?

Let that sink if for just a moment. All of a sudden you have no options. You have no address to put on a resume. No phone to return job offer calls even if you do get an interview. No transportation.

Even if you were the greatest employee in history not sure the lack of an address and phone would endear you to many personnel managers.

Even if you did find a job, prepare for your paycheck to be garnished to repay your bank and other creditors.

What About All The Safety Nets?

Public assistance might be a possibility for you depending on assets that you might not realize are assets. Stocks, bonds, pension plans, 401(k) and or investments.

There’s an old saying, “The bank will always loan you money if you can prove you don’t need it.” The government works the same way sometimes.

We always hear about people scamming the system. As much as you would like that to be you it probably won’t work because you are honest.

You might qualify for Medicaid assuming you can find anyone who will take it.

Temporary Assistance to Needy Families is aptly named. It’s temporary.

Food stamps

“Homeless persons are eligible for SNAP/Food Stamps even if they live on the streets and do not have a mailing address. Homeless people cannot be denied SNAP/Food Stamps simply because they lack a permanent address.” 7 CFR 273.3(a).

So you may not starve.

Some Final Thoughts

I realize this might sound like a downer blog post. But it’s really not. It’s a preparation talk.

It’s like the preparation for a big game. Your football team has a great passing game but what if it rains or snows or is very windy? What’s your backup plan?

Have you got six months of salary in savings? I’m guessing probably not.

But if you did would you be able to regroup, pay the mortgage, your bills, and look for a job you are qualified for?

I’m guessing probably yes.

So is there any evidence, of any kind, that the scenario I’ve laid out could not happen to you?

And if it did, what would you do?

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