» Managing Your Finances While Unemployed
If you are a new member to the unemployment club, don’t feel bad. Those numbers are growing every day, and for most people, it’s not their fault. First things first, it’s okay to take a week to vent, relax, or whatever you need to do before you get back on track. Losing your job is a big deal, so taking a break to decompress is perfectly okay. Once you’ve taken a deep breath, shift your focus to these three things: prioritizing your lifestyle, conserving your funds, and learning to budget your resources.
At this time, your goals need to change immediately from long-term to short-term goals. Make it easy on yourself by creating a list that will help you prioritize where your money needs to go right now. Make a list that separates your needs from your wants. Your income has been significantly reduced, so it will be important to address all of your “need” responsibilities before your wants. Give yourself clarity and an organized idea of what you need to survive and what you can set aside for later on.
Following a set budget is crucial to your financial survival when you don’t have a steady income. Review your list and identify items in the “wants” category that you can significantly reduce or eliminate until you land your next job. Your “needs” category may consist of bills regarding groceries, mortgage or rent, utilities, and transportation. These are your top priorities; Your goal is to focus on the essentials, and spend as little money as you can until you find a job.
Once you have decided on non-essential items or bills you can cut or reduce, investigate ways of how essential bills can be reduced, as well. Contact lenders, credit card, and utility companies as soon as possible to make arrangements for more flexible payment plans, loan modifications or, deferral of payment with credit cards. Ask your utility company if they currently have any special offers and if you would be able to take advantage of them. It’s free to ask and it’s not a pride thing; it’s a smart money-saving move. When you purchase groceries, use coupons or a grocery store value card and buy generic brands. Your goal is to get as creative you can with saving money you have to spend each month.
Even on a budget, you can find inexpensive ways to have fun on the weekends. For example, instead of paying full price on the latest flick, wait until movies hit the dollar theater in your city. Instead of going out to dinner at an expensive restaurant, have a romantic picnic in the park. Your physical health is always top priority, but the $30 plus monthly gym fee is taking away money from things you need. Check out workout DVDs at the library and go for a run at the high school track for free. Keeping a bare-bones budget until you find a new job means that you can’t afford to spend the same amount on entertainment. However, finding creative ways of having fun on a budget can help relieve the stress of constantly penny-pinching and looking for a job.
Conserving your funds is your main goal, but you can help yourself even more by getting a side hustle that will ease some financial stress. The quickest way to raise cash is by hosting a virtual garage sale. Go through your closet, and get rid of items that you don’t need or haven’t used in a while, and post them online. If you can sing, draw, or know how to fix computers, advertise your services online and in your community. If you have a spare bedroom, get the word out that you are renting out your extra room. Getting an odd job will keep you busy, proactive and can get you extra income doing something you actually enjoy.
How you spend your time, energy, and resources right now through the end of your job search will determine how quickly you will be able to bounce back. And you can come back from this, especially when you implement budgeting strategies and manage your resources wisely. If you follow a strict budgetary guideline and adhere to money-saving rules, you can survive a stunted financial growth period faster, with less stress, and quicker recovery.