5 Financial Tips for the Unemployed

Saturday, January 24, 2015

5 Financial Tips for the Unemployed



Thanks to the recession and the changing dynamics of the economy, unemployment is a prevailing issue. They tell you that unemployment is improving or it already has improved, but there are still plenty out there who are still caught in the massive unemployment nest. Whether you were laid off, resigned yourself or just can’t find the next best job, you’re probably not having the time of your life with your current financial situation. And if you are still (irresponsibly) having the time of your life, then you’ll eventually fall into that situation when you’re not. 


So there are two ways you can handle your current situation:


1)     Sulk and complain about how the government fails to help the general public

2)     Take matters into your own hands by staying focused and proactive
If you chose the first, be my guest. The article ends here for you.
If you chose the second, here are tips to help you take “matters into your own hands”:

1)      Know Your Sources: The first step is to make a list of all of your income sources. How long will they last? Some companies offer a severance package to those employees who recently left their organization. Find out if this is a possible source.

Sign up for government-funded unemployment resources online. You are eligible if you have been laid off through no fault of your own and if you meet certain criteria. The Supplemental Nutrition Assistance Program (SNAP) is well known for providing the unemployed with food stamps. For more information on unemployment benefits provided by the government, visit the Depart of Labor website.

2)     Find Gigs: Remember every little dollar adds up. So don’t be ashamed to work here and there for an extra dollar. Find a part-time job as a tutor, lawn mower, babysitter, seller, or a freelancer. However, keep in mind that freelancers are subject to taxes (under certain conditions) and are not eligible for unemployment benefits. 

3)     Keep a budget diary: Just like you did when you were in college, you’ll have to maintain a diary of your financial transactions. Note down all of your necessary bills (i.e. food, transportation, clothes, utilities,,, etc.). Next, set those aside and jot down your total income. This will give you an idea of your income availability and how much you should be spending or saving. To be very accurate, it would be better to jot down your daily/weekly financial transactions.

Ensure that your budget plan makes sense. Cut down as much as you can from your expenses. This means you should…

4)     Reduce a few expenses: It won’t be like before when you didn’t have to worry spending a little extra on something or the other when you were employed. Keep track of your spending just like you did when you were at school and had only a fistful of pocket money to spend. Get rid of the phone, cable television, or any other non-essential bill you may be paying. Look for ways to reduce the gas and electricity bill since every little dollar adds up. Cook food at home or buy generic brands.

And finally…
5)     Keep looking for your next job: You can’t be in this situation for too long. The longer you take, the harder it will get. So, don’t take too long to put your suit back on and go seeking for your next new job. Networking is a great way to speed up the process. Let your friends and family know that you are searching for a new job and are up and ready to join the workforce again. Keep sending as many applications as you can on job boards. Keep track of openings in the newspaper and online. Print and hand in an updated version of your resume to whoever accepts/ prefers resumes in tangible form.
Now, suit up for the next interview!


About Author:


Alice Scarlet works as a part-time employee for a UK based education consultancy that assist students who come to them asking, “can you help me Do my assignment.” Besides her part-time job, she also runs her own small business where she enjoys being her own boss.



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