Managing Finances After Losing a Job
When you find yourself dealing with job loss, it can be a very stressful time as you seek new employment and figure out how to cope financially in the meantime. Along your road to re-employment, there are some things you can do to lessen the financial blow.
1 – Assess the Situation
Taking stock of your finances is the first natural step when you’ve lost a job. The initial shock and stress can make things seem worse than they really are, so examine where you are at financially. Assess your monthly expenses and what it’s going to take for you to survive until you’ve found a new job. Consider savings accounts, investments that can be easily liquidated, lines of credit, home equity, and nonessential valuables that can be sold or pawned. Many creditors will also work with you when you experience hardships like a job loss and will allow you to skip payments. A lending company like CashMax Title & Loan can also be of help to provide you with extra cash while you’re getting back on your feet.
2 – Take Advantage of Unemployment Benefits
Many people mistakenly equate filing for unemployment with applying for welfare. Collecting unemployment is in no way the same thing as taking a government handout. You have earned that unemployment cushion, and you’d be foolish not to utilize it during your period of joblessness. Collecting unemployment achieves two things: It gives you a weekly income, albeit smaller than what you were earning at your job, to help you get by while you hunt for employment; and it also helps motivate you in your job search, as you have to apply for a certain number of jobs each week in order to remain eligible. And don’t assume you won’t qualify to receive unemployment. Even if you’ve been fired from a job, you may still be approved to receive those benefits, so apply!
3 – Tighten the Belt
The admonition to cut back in order to save money may seem like a no-brainer, but most people don’t realize just how much money they spend unnecessarily each month. Take a hard, honest look at all of your expenses and pinpoint the areas where you can and should cut back. For instance, if you’re paying $100 a month for satellite TV, drop down to the least expensive package your satellite company offers while you’re in between jobs (or you could get really bold and suspend your satellite service altogether and be satisfied with, gulp, just the basic antenna channels for a while).
