<prompt> Human: Hey guys. Due to some big downturns in my industry, Im looking at a future where my income may drop by 50 in the next couple years. We are doing well now and live pretty frugally but if this income hit happens what now seems frugal will be close to unsustainable fast. My wife started talking about downsizing our house for a smaller mortgage payment and I started thinking about the other changes we could make. Has anyone else went through this type of event? How did you plan for it? Obviously this is a little different than being fired, I see this coming, its just going to be a very dry period.We have a six month emergency fund plus my wife makes good money. Im more wondering about downsizing the house and downsizing other expenditures.  <response>: Its really hard to know what kind of downsizing youre looking at. You could be the uber rich, downsizing from private schools, private planes, once a month trips to Europe, a boat, and 3 houses, or you could be lower middle class and looking at dropping to the poverty line.If you list out your current expenses and such, PF can help you target areas that are easiest to cut. : Besides cutting expenses, the other way to look at this is to fix the income situation. Why are you just accepting a 50 pay cut? Are you completely unable or willing to change industries? Are you unable to move up the ladder further in your industry? Are you unable to change locations to where you can get better pay? 