In today’s economy, having a stable is absolutely crucial. A steady stream of income allows an individual to save, and pay for his daily expenses. But whether you were fired or you resigned, or if unfortunately, your company had to close down, unemployment is never an ideal position to be in. Almost everyone has been in a challenging place career-wise.
So how do you pay for the bills, or sustain your expenses while you go job hunting when you don’t even have a steady source of income? Here are some financial tips for the unemployed.
Emergency savings
If you’re in a position with more control like handing out your resignation, do so knowing you have sufficient emergency savings. Having an emergency savings account worth at least three months of your salary is important to fund your expenses while you are in between jobs. For those starting out their professional careers, remember to allocate at least 20% of your earnings to an emergency savings account. It would best if the account is not linked to an ATM via a debit card to avoid cashing it out easily.
Financial Status
If you find yourself all of a sudden fired, and without any savings to back you up, evaluate all your current expenses and other financial concerns. How much are you paying for the rent? How much are you paying for your utilities? If you do have savings, how far can you stretch it to cover your unemployment period? If your financial resources are meagre, it’s time to seek help. There is no shame it admitting your need money – whether it is from parents or friends – but guarantee you pay them back. Owing someone money is not advised, but if you’re pressed to pay something, cut down on your other expenses and be quick to find a new job.
Cut down on unnecessary spending
If you do have savings, cut down on unnecessary expenses. Unemployment is not that time for you to spend all your money going to parties, or making impulse purchases. If you’re out of work, it’s not apt to buy an expensive new phone and deplete your emergency financial resources. Be wiser if you’re without a job. Organize your finances so you can have a budget to fund your job-hunting.
Find a part-time job
Instead of getting depressed or being stuck in a rut, look for a part-time employment opportunity while you’re looking for a full-time job. Countless freelance opportunities can be found online – from online English tutoring, to part time content or creative writing or simply creating your own blog. Remember the colleagues at work or your classmate from college? It’s high time you reacquaint with them again or network with your former workmates to see if they know of any job opportunity – part or full time. Having a freelance work at the side will give you a source of income – no matter how small – to go back to your savings account.
New Job Reminders
Once you find a new job, you will need the financial fortitude to ensure the transition is good. Have your savings been depleted? Focus on putting money back on your emergency funds. Pay all the people you owe money too. Continue cutting down on unnecessary expenses well up until you six months in your new job. Address other financial issues immediately by tracking down your new expenses, and organizing all your important financial documents – bills, bank transactions, receipts, credit reports – to make it easier for you to regroup and regain lost financial ground.
