Since the start of the 2020 pandemic, millions of people have learned what it is like to suddenly lose their jobs. With unprecedented layoffs and company closures, the unemployment rates across the world skyrocketed and are just now slowly starting to recover.
If you have unexpectedly lost your job, you are probably feeling stressed and stunned. Once the shock passes, it is time to buckle down and figure out what you are going to do to keep your finances in order without a regular paycheck.
While there are payday loans for unemployed workers in case of emergency, it will take a bit more planning to keep your head above water while you are unemployed. The good news is that it’s possible to make ends meet when you lose your job. Let’s take a closer look at a few ways to manage your money when you are unemployed.
Track Your Spending
When you have a regular income, you aren’t as likely to be conscious of where you are spending all of your money. To help you get a better picture of your finances, you should start by tracking your spending. Gather all of your bills and receipts for the last month and take a closer look at where your money is going. You may be surprised about how much of your disposable income is spent on non-essential expenses.
Cut Your Budget
When you suddenly become unemployed, it’s crucial that you prioritize your essential expenses, including housing, food, utilities, and healthcare. No matter what difficulties you are having financially, you need to keep a roof over your head. All other expenses are negotiable. Making a list of all the places where you spend money monthly can help you to clearly see where you can cut back. For example, it’s a good time to cut back on your expensive cable and phone packages, eating out, entertainment costs, and clothes shopping when you lose your job.
One of the places where we tend to spend more than necessary is eating out. From spending more than $5 per day on a simple morning coffee to daily lunch costs and take-out dinners, it’s surprising how much money you can save when you eat at home. Take this extra time that you have to renew your love of cooking and get in the kitchen and try out some new culinary creations to help you save money.
Going out to a movie or a play can be fun but expensive. When you are unemployed, you will need to find ways to stay entertained while spending very little money. Thanks to streaming services like Netflix and Hulu, you can now have affordable movie nights right at home. Cook your own popcorn, dim the lights, and have a home theater experience while you save money.
As you update your resume and start pounding the pavement looking for a new position, it’s a good idea to stay open to various part-time opportunities. You may not be able to find anything permanent quickly, but there are hundreds of side gig jobs that you can take to make a bit of money. You can freelance out your talents to private clients, take on some retail shifts, use your car to make money through Uber or Lyft, or do random tasks for money on Fiverr or Craigslist. Every little bit of money counts when you are trying to manage your finances when you lose your job.
If you have suddenly become unemployed, you may be feeling a bit panicky and stressed. Follow these tips to help you make ends meet until your next career opportunity.