Tess at The Bold Life has recently posted some articles in relation to unemployment. Given the state of the economy and the jobless numbers that have been released over the last few weeks her advice and commentary is well timed.
Taking a cue from her I thought I would approach the topic from a slightly different angle. As Tess covers how to get through unemployment on a personal level in this post, I figured I would cover how to get through a time of unemployment from a financial standpoint.
Here are five tips to prevent unemployment from beating up your finances:
- Have an emergency fund ready. I’ve spoken about this before and I can’t continue to stress how important it is to have emergency funds ready. If you don’t have one now, start today, make it automatic!
- Cut out the unnecessary expenses. You don’t really need the Starbucks coffee or another beer. Being out of work means tightening the belt and cutting the excesses. You may find that you can live without these items and when you find yourself working again you may be ahead financially.
- While you’re looking for a new job or career don’t be afraid to take on a part-time job. This is a subject that Tess covers, but it needs to be stressed. You need to bring in money to pay the bills. Don’t be stubborn or let your ego steer you away from part-time work.
- Be careful with credit. When you aren’t working it’s easy to start charging the credit card or drawing down on the line of credit. This can be dangerous if you haven’t cut out the unnecessary expenses. Remember any money you borrow during this time needs to be paid back and the interest will be accumulating. Don’t create another headache for yourself.
- Cut coupons. Go through the flyers and cut the coupons out. You need to find ways to save money on the items you still need to purchase. This might mean shopping at the discount grocer as opposed to the organic health food store.
When you’re coping with unemployment it is important to be realistic about your expenses and finances. Many people struggle to let go of the extra’s they have in life as they don’t want friends to know how bad the situation is. Often this leads to more problems down the road.
Regardless, being unemployed is a tough go, but it is survivable. Just be realistic.