Last Updated on Dec 20, 2019 by James W
Unemployment can suddenly happen to anyone. Even if you’ve been steadily employed for the last couple of years or even decades, you never know where your services simply won’t be needed anymore due to a shift in the local economy or something similar that’s completely out of your control. Now here’s the problem; although money won’t be coming into your bank account for the time being, the bills still need to be paid somehow. Therefore, proper money management is imperative. But even if you don’t have a clue how to go about it, don’t worry – it can all be learned. Here’s what you need to do:
1. Try finding a roommate
Unless you’re married and have a spouse who would object to this, finding a roommate will allow you to split your rent in half. This should help you preserve your remaining funds for as long as possible until you can get back on your feet once again. Still, don’t just take someone in the first opportunity you get. Instead, try to find a person you get along with rather well. Even if you’re already living with a roommate, finding a new one is not completely off the table (if you have room, of course).
2. Cut back unneeded expenses
If you’re planning to purchase something new or make a huge investment, it’s probably best to put it off for the time being. Also, you’ll find that temporarily parting ways with costly entertainment will help your remaining funds last longer. If there are conveniences you can live without (such as eating out), try to put these on hold too. The drivers among you have a vehicle you can sell – if there’s public transport you can take advantage of, this is probably for the best.
3. Track your spending habits
Sometimes, people are spending money carelessly, but they don’t even know it. You might be one of them and not even know it. Luckily, there’s plenty of modern money-spending trackers you can install on your smartphone that will help you get your spending under control. Alternatively, simply gather your receipts and review them – that way, you’ll probably find there are some expenses you can cut without feeling the effect of this at all. However, don’t try to be late with your mortgage payments for example, as doing so would have a negative effect on your credit score.
4. Earn more money
Who cares that you can’t get a full-time job? Part-time work will have to do for now. In the meantime, don’t forget to remain on the hunt for a regular job if that’s one of your priorities. Now, here’s the thing with getting a part-time job; it surely helps if you manage to find something you like, but if not, don’t sweat it! Chances are, it’s just for the time being. Bartending is probably a suitable thing for you if you like working with people. If you’re more of an adventurer, try becoming an Uber driver – those living near a big city will find it hard to run out of work anytime soon. Of course, you are by no means limited to these options (they’re merely suggestions), so get creative!
5. Utilize Airbnb
The homeowners among you will be pleased to know that Airbnb, the popular home-sharing service, makes it incredibly easy to find tenants. Living in a busy or attractive location surely does help, but everyone should be able to find more than enough opportunities to make some money on the side. You don’t even have to list your home for an entire month – even a weekend will do just fine. If it helps you earn even as little as $50, that’s something that will surely help you get through the month a little bit more easily.
6. Drain your emergency fund
Many people choose to set some money aside for emergencies such as these. Well, now’s the time to make some withdrawals. After all, you can always replenish your reserves at a later date. Even though you probably may not be able to afford planning for the future in your current situation, you should start building up an emergency fund as soon as the circumstances allow for it.
7. Search for government programs
Did you know there are government programs specifically designed to help you resolve your current situation? Check if your government offers one as well. Still, keep in mind that getting unemployment benefits can take a while, so apply as soon as you can. During your financial struggles, you can also seek out a charity that will provide food, shelter, and the necessary living resources.
8. Ask a friend for help
Having many friends is surely an asset when you’re unemployed. Perhaps one of them will let you stay under their roof for the time being or maybe lend you a car? The closest and firmer the relationships you’ve nurtured, the more likely it is that you’re going to find a kind heart among them who will be more than happy to help you get through this unfortunate situation. Still, if at all possible, don’t be a burden – at least not more of one than you absolutely need to. Instead, try repaying the favor by mowing the grass, washing the dishes, and helping with other household chores.
9. Get a loan
In case you’ve exhausted all of your other options, consider getting a loan. Luckily, there are specifically-designed loans for unemployed you can take advantage of. Getting a loan, however, should only be considered in an emergency and in the event that every other alternative strategy has failed; this cannot possibly be overstated. Keep in mind that taking this route will factor in some new monthly expenses, as you’re going to have to start paying it back eventually.
There’s no need to act upon everything you’ve learned today, as not all of these tips are suitable for every single person out there. But more than certainly, you’re now well aware of the several options you can choose from, so finding something suitable for your particular situation, abilities, and needs will now no longer evade your grasp.