How To Survive Financially When Unemployed

AdminBy AdminNov 4, 20170

There’s a lot to contend with when you’re unemployed. As well as the psychological effects unemployment can have on an individual, there’s also the matter of how to get by financially.

Going from having a salary that enables you to live relatively comfortably to having to survive on very little can be quite a challenge. But using a little imagination and some wise budgeting can help anyone to survive financially when they’re out of work.

Get Back To Basics

Get Back To Basics

Accept that you are going to have to make changes. If you try to continue spending in the same way you were when you were employed, you will soon find yourself in dire straits. Don’t be put off setting up a budget because you think it’s too complicated.

Simply add up your monthly (or weekly) income and then subtract your outgoings, including all expenditure such as eating out and any membership fees you pay (e.g. fitness center). It’s likely that your outgoings will exceed your income, in which case you’ll have to consider what you can live without and cut those expenses from your budget. In addition, look at areas where you can make savings.

For example, if you make a few modifications to your diet you may be able to save money on your grocery bill.

Don’t take on any new financial commitments while you’re out of work. You may be adopting an optimistic attitude and have every reason to believe your unemployment will be short-lived, but it’s best to err on the side of caution and try to live within your current means.

If you have a family, explain to them what’s happened and why money is going to be a little tight in the future. Don’t be afraid to cut back on your children’s expenditure. This could prove to be a valuable lesson for your kids, one that could be useful for them when they come to be responsible for their own finances.

Who Can Help?

Who Can Help?

Find out what, if any, government financial assistance you’re entitled to while unemployed. In addition, there may be government-assisted programs designed to help individuals find employment which may prove useful at this time.

As well as any assistance the government may be able to provide, check out your local library for resources. Libraries stock all the latest newspapers and periodicals which may help you with your job search, and as access is free this is another expense you won’t have to make.

It may be worth contacting any lenders with whom you have loans to see whether there’s the possibility of modifying your repayment plan. If you explain your current situation, your lender may be willing to make an adjustment to help ease the pressure of repayment until you’re re-employed.

Although part-time work may not be what you want to do, it could prove to be a useful stop-gap and help to stretch your finances that bit further until you do find the job you want. Similarly, a temporary position may help to tide you over for a month or so.

Also look into new sources of income. Consider what skills and talents you have and decide whether you could put these to good use – and make some money in the process.

Stay Motivated

Stay Motivated

There’s no need to live like a hermit while unemployed. As well as the financial consequences of unemployment, there are also the psychological effects to deal with. Unemployment can lead to feelings of depression and isolation. Remember that there are a number of activities that are free or require very little money.

If you do find yourself feeling isolated, consider volunteering for a local organization. Many people find that the networking opportunities volunteering usually offer can lead to an enriched lifestyle, as well as sometimes opening up doors to employment opportunities.

Conclusion

In order to successfully ride out the storm of unemployment, remember to keep a firm rein on your finances, and stay positive and motivated. This will help you to be better prepared to seize any job opportunities that will eventually come your way.

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