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5 Tips for Managing Your Money When You Are Unemployed

  • May 31, 2022

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young woman looking for a job and managing money on laptop

In the past two years, many countries have experienced unprecedented unemployment due to the disastrous global pandemic. As the world begins to return to normal, many companies are still recovering and restructuring their infrastructure, leading to further layoffs and job loss. 

Losing a job for any reason can be devastating personally and financially. After the shock of sudden unemployment sinks in, you must start planning to be out of work for a while. This means that you will have to take a close look at your finances and start rearranging your budget. 

Whether you are recently unemployed or on disability benefits, it can be difficult to make ends meet when you have a limited income. While there are emergency solutions like ODSP payday loans, the best course is to manage your money based on your limited income. Let’s take a closer look at a few tips for managing your money when you are unemployed.

Track Your Spending

When you have a reliable income, you may not pay too close attention to where you are spending your money. When your job ends and your regular paychecks dry up, you will need to save wherever you can. To help you find areas where you can save, you need to know where you are spending your money. Gather your receipts and monthly bills and look at where you may be losing money. You may be surprised at how much money you spend on non-essential items. This review of your spending will be an excellent tool for reformatting your budget.

Cut Your Budget

When you suffer a job loss, it’s crucial that you cut back on your expenses as much as possible. Start by making a list of your essential expenses like your mortgage, insurance, healthcare, and utilities. All other costs are negotiable. For example, when you are unemployed, you need to consider the importance of your everyday luxuries. Now is not the time to hang on to your extended cable package or expensive phone plan. You need to minimize all of your bills and concentrate on paying for your unavoidable expenses.

Find Available Programs

Many government-funded programs have been created specifically to aid those that find themselves unemployed. It’s important to file for your unemployment insurance claim right away as it can take some time to process your account. Additionally, there are many programs that can help you through this difficult time including food stamps and job placement assistance.

Side Gigs

Take advantage of your job skills to pick up a few side gigs to bring in extra money while unemployed. You can freelance your skills to clients, pick up some shifts in retail, rent out your car to a ridesharing service, or complete random tasks from Fiverr or Craigslist.

Split Expenses

When you become unemployed, your focus should be on finding ways to save money on your essential living expenses. If you own or rent a home, you may want to consider bringing in a renter or a roommate that can split the bills. This can help you to minimize your budget and stretch your limited income until you get back to work.

Losing your job can be very stressful. Take action and plan to reduce your budget, track your spending and find ways to make extra money until you get back to work.