Financial Tips for the Unemployed

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 COVID pandemic shows us, no matter how hard-working we are and how secure our job is – we can lose our job overnight.

Even if you’re employed right now, you should prepare for rainy days.

And for millions of workers out of job due to the pandemic, these tips can be very useful.

The length of unemployment can often vary due to a 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 differently.

Every person struggling financially has to budget the expenses.

Is essential that an unemployed person budget all the expenses he/she incurs during unemployment.

Financial Tips for the Unemployed

Watch out for various pandemic reliefs

Check with your banks if they can provide financial relief.

Many credit card issuers are relaxing repayment terms for those who are affected by the economic situation.

Check with your landlord, if you’re renting, for rent moratorium.

Many states have enacted rent and mortgage moratoriums.

See if you can delay your debt payment, without affecting your credit file, and financial impacts like fees.

Your local govt. the website may provide some useful information.

Do not miss out on govt. economic stimulus packages.

You can move in with others

See if you can move in with friends or relatives. This may save you a significant amount of money.

You can share food and car to further save.

This will be beneficial for both parties and the cost should get shared between the two.

If you’re single you can have multiple roommates.

You can stop using credit cards

When unemployed, chances are high that you can’t pay off the entire balance at the end of the month.

Many of us do the mistake of using a credit limit to maintain the same standard of living, with the hope to pay off the balance later.

This is a trap, a debt trap!

When in crisis, stop using cards and rather pay with wither debit card or cash.

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.

The first thing 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 in Florida.

Know what is available in your state and how to apply it!

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 each month.

Once you see the broader picture of your expenses, it will make it easier to tighten the belt.

If you have Netflix, Hulu, and cable subscription, what can you cut?

Can you truly survive on no subscription until you are employed again?

Furthermore, look at 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 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 the unemployment situation?

How did you cope with that, what did you budget for, and were you able to stick to it? Share your opinions.