If you have been, or are about to be, unemployed, you are likely to be under a lot of emotional and financial stress. Before you let yourself get too upset, it is important to realize that there are many things you can do during this time to help yourself stay financially secure. The important thing is to be proactive and take control of your finances as soon as possible. Below are five great money tips for those who are currently, or about to be unemployed.
- Apply for Benefits
Depending on your specific situation, you may be eligible for goverenment assistance. This can help offset some of your household bills. It is important that you apply for benefits through your local human services department, as soon as possible, even if you know you will have a waiting period. This will ensure that everything is in place and your payments will start as soon as you are eligible.
- Understand Your Limitations
One of the first things you want to do once you know you are going to be unemployed is to take a look at your current financial status. You need to look at home much money you have available and your expenses. This will give you a clear picture of how much money you have available and how long you will be able to stay financially secure until you need to take some additional action.
- Adjust Your Current Budget
Now is the time to adjust your budget and look for ways to cut back on your everyday spending. Look for ways to cut back on your utility bills, food expenses, and entertainment costs. This may include cutting back on your energy use, purchase your groceries in bulk and with coupons, and use public transportation rather than using your own vehicle. Remember that this is only a temporary reduction until you are able to find another job.
- Contact You Lenders
If you already know you are going to have some trouble paying some of your bills, you need to contact you lenders or service providers immediately. Explain your situation and ask if they are willing to make alternative payment arrangements, until you are back to work. Do not wait until you are far behind in your bills to contact these companies. Many companies have a hardship office and they will be more willing to work with you if you are proactive then if you wait unitl your bills are way past due.
- Short Term Contract Jobs or Loans
Even if you are receiving government assistance, it is likely that you will still be able to work on a part-time or contract basis and still receive benefits. This may be able to bring in just enough extra money to help keep you financially secure until you can find a full-time position. In addition, you can use this job on your resume so there is no lapse in your employment history. If you are unable to find a short term contract, you can look into securing a short term loan such as car title loan Sacramento, to help you get by until you can find work.
These tips will help you get through this difficult time and protect yourself financially until you are able to find another job. The most important thing is to get control of your finances as soon as possible, before you run out of funds. The longer you wait, the harder it will be to stay on top of your finances. This will help you reduce your spending to a point where you are able to maintain household until you have steady income again.