Friday 22 November 2019

Tips for Managing Your Finances After Losing Your Job

Whether you’re working in a position that simply pays the bills or you’re doing something you love, your job provides a sense of security. The income you make from your place of employment allows you to pay the bills and afford other needs and wants. When that security is suddenly taken away from you, things get quickly out of hand. 

Until you find another job you have to figure out how to survive with the funds available to you. At first glance, this may seem impossible. Especially if you were already struggling to get by on your employment income. So many people struggle emotionally with the loss of a job and end up getting sick both mentally and physically. 

For those who have children to support (like mothers), these stresses are even higher. You become so overwhelmed by your financial responsibilities that you stop taking care of yourself, stop enjoying life, and even take to unhealthy methods of coping like using drugs or alcohol (which only worsens your financial situation). They end up needing to go to a women’s recovery center for treatment which takes time away from being able to find new employment. 

Your chances of survival may seem bleak, however, it’s not impossible. By using tips like those to be discussed below, you can stay above water until you’re back on your feet financially. 

File for Unemployment

Depending on the reason for your unemployment you may qualify for government benefits. Though it won’t be as much as you were making while employed, it does give you something to afford the things you need. As it can take several weeks for the process to be completed, this is something you want to complete right away. Contact your state’s labor department to find out what is required to qualify. 

Review Your Savings

Hopefully, you have some sort of savings that you’ve been tucking away for a rainy day. If you have been setting money aside, now is the time to review how much you have as this is an ideal time to use those funds. IF you don’t have an emergency fund but have retirement savings you can pull funds from this account to tide you over. Just keep in mind that you need to repay the loan in full in order to avoid hefty tax fines. 

Create a Budget

Based on the qualifying amount for unemployment and your rainy day savings, create a budget to see if the income you have is enough to cover your expenses. 

Cut Spending

If the income you have is not enough to cover all of the necessary expenses you need to determine how you can save some extra cash. You might do things like reducing your data plan on your phone, cut cable services, stop eating out, and reduce your entertainment expenses. You can also look for ways to save on costs like using coupons, switching car insurance companies and look into ways to lower energy costs in the home. 

Contact Creditors

If you have loans, credit cards, or other debts that you were regularly paying, you need to reach out to the creditors or company responsible for managing those accounts. This is a lot better than ignoring the problem and having to deal with collection calls, further collection actions, and more stress. Make a call, write a letter, or send an email explaining your circumstances. They may be willing to put payments on hold for a moment or can negotiate an arrangement that is more affordable. 

Government Programs

There’s a lot more help out there for the unemployed than you may be aware of. Not only could you receive unemployment benefits but you could also qualify for free or affordable health insurance, food stamps, housing payment assistance, additional funds to support your children, as well as free assistance with finding another job. Be sure to check with your state or county to find out what programs are available to you.

Losing your job can be devastating. For many people, your job is your sole source of income. Without it, providing for yourself and your loved ones becomes increasingly challenging. Be that as it may, there is hope. Utilize the tips provided above to manage your finances until you find your next job. 

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