There are reasons behind unemployment that so many people don’t take into consideration. It could be as simple as someone quitting a job during an angry moment. More than likely, it’s because a company has downsized and laid off employees. The length of unemployment can often vary due to lack of employment opportunities for unfortunate accidents that have left someone temporarily unemployable.
Even though a disability of any kind cannot be used to deny employment, employers often find ways around that law to not hire someone. Regardless of the situation, your finances have to be managed in a different way. Every person struggling financially has to budget the expenses. Is essential that an unemployed person budget all the expenses he/she incurs during the unemployment.
Tips for managing your financial situation when you are unemployed or underemployed.
Find Some Temporary Income
Rest assured, we know you are looking to find a job. However, in the meantime, it simply helps to have some sort of income making its way into your bank account. This is especially important if you are without any emergency savings in place.
First things to check is if you are available for unemployment. Each state is different so do lots of research on your state. For example, unemployment benefits in California are typically higher than Florida. Know what is available in your state and how to apply!
Not everyone will be awarded unemployment benefits and that makes things trickier for the unemployed. Get crafty and pick up some odd jobs to help keep the lights on.
Babysitting, lawn care, errands, or even signing up with Uber or Lyft can help bring some cash in when you need it the most. It will also keep you available to keep applying and looking for work.
Track Your Expenses
Now is the time to write down what you spend your money on each month. Once you see the broader picture of your expenses, it will make it easier to tighten the belt.
If you have a Netflix, Hulu, and cable subscription, what can you cut?
Can you truly survive on one subscription until you are employed again? Furthermore, look to areas like clothes and entertainment to cut down your expenses.
It doesn’t mean you can’t have some fun, you will just have to get creative on how to spend less or do it for free.
How about your phone expenses?
Food expenses can be cut, but just be sure you are still able to eat without going hungry. If you are surviving on emergency savings, you still should tighten the belt so as to make those savings last as long as possible.
Look for Assistance
If you find yourself unable to pay the rent or to feed yourself, take the time to apply for assistance.
These programs are just a short-term solution until you get back on your feet. We sleep less when we stress about making rent, pay the utilities, or eating.
Any assistance you are awarded should be budgeted as well so that you don’t run out too quickly. And if you receive only partial assistance, you should budget so that you can make sure you cover your portion of the expense.
When applying for assistance, any sort of side income must be accounted for. That includes unemployment benefits and money you are making in your side gigs.
Being unemployed can be difficult. There is a lot of emotions surrounding the loss of a job and when we throw financial difficulty into the mix, it can become a major stress inducer.
However, if you keep a tight budget and live within the means you have at hand. If you have family and friends who can help you, put your ego aside and let them help you. After all, you would help them if they were in need.
Readers, have you ever faced unemployment situation? How did you cope with that, what did you budget for and were you able to stick to it? Share your opinions.