How To Survive Financially When You’re Unemployed

Maybe your employers enforced a downsizing strategy and let you go into the process; or a sudden restructure took place at your company eliminating your position; or you may have lost your job because a major problem or incident at work; or you have simply decided that it’s time to ditch your comfort zone and explore other possibilities, following your passion for more creative paths.

Whether or not you knew in advance that you were going to leave your job, it’s never too late to take some measures that will help you survive financially as you plan for your next step. In this article, we give you three approaches that are worth exploring.

1. Reassess Your Spending

When you rest assured that you have a fixed monthly income, you become comfortable spending on whatever you may please. Not everyone tends to track their day-to-day expenditures. It’s important now than ever to get educated on where you money is going.

The first immediate step to coping with unemployment is to revisit your spending, and trim whatever you can out of it. Examine your cable TV subscription, cell phone and home phone plans.  Compare costs for services you subscribe to. Check the price and features of cable TV vs. streaming. Talk to your providers and find out if you can get better packages, or eliminate what you no longer need. Make a mental note to channel your resources towards the basic needs, and cut down on unnecessary luxuries for now. Be careful when cutting back on insurance. Instead look for more affordable policies like at moneyexpert.com.

2. Consider Taking an Unemployment Loan

This phrase may sound counter-intuitive, but hear me out. Loans for unemployed with no income do exist, and for a good reason. Granted, nobody wants to be in debt while they still have no job and don’t know when the next income door will open up, but emergencies do happen, and you should be prepared. An unemployment loan offers some emergency padding for a rainy day, and you should be able to pay it back once you’re back in the workforce.

3. Generate Some Income from Home

When you are living on less income than what you were accustomed to, you will quickly realize that any money you can bring in will be helpful. Research online and educate yourself on how you can generate some extra cash by working from home. Make a list of the set of skills that you can use; can you earn money as a freelancer? Maybe a writer, graphic designer, or social media consultant? Are you a good cook and can start a small catering business for intimate parties and dinners? Do you have too much clutter at home, items you no longer use that are just collecting dust? Maybe it’s time to go through your things and sell some on ebay – someone else might make better use of them, and you will gain some extra pocket money.

Take Active Steps

Regardless of the reason behind your current unemployment, it is safe to assume that the situation is expected to pose financial pressures on you and your family. You can, however, counter these effects by revisiting your household budget and spending, considering an emergency unemployment loan, and exploring ways to supplement your income by working from home. Do not treat unemployment as a hindrance to your success. New doors will eventually open if you keep on moving forward.

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