Financial Steps to Take to Get Through Unemployment

Financial Steps to Take to Get Through Unemployment

Make money

In some cases, employees get advance notice that they will likely be laid off within the next few weeks or less. However, many employees are shocked by the unexpected notice that their services are immediately not needed. This can be emotionally difficult to deal with, and the financial stress of the situation can make matters worse. After all, you may rely on your paychecks to make ends meet, and you may even live paycheck to paycheck. If you are wondering how you will get by without regular income from your job, taking action immediately can help you to pave the way to a less stressful unemployment period. These are some of the best initial steps that you can take to manage your finances while you are unemployed.

Collect Unemployment Benefits

You may qualify for unemployment benefits, but these benefits cannot be received unless you formally apply for them. Each state has a different process to claim unemployment benefits. In some cases, you must physically stand in line at the unemployment office. Be aware that unemployment benefits typically will replace all of your lost income. However, it may be enough to pay for the essentials in your life so that you can take at least some stress off of your shoulders. Remember that it may take a few weeks for you to receive your first unemployment check, and there are typically requirements that you must meet in order to continue to receive these benefits.

Scale Back Immediately

If you live a paycheck to paycheck lifestyle, it is important to scale back your lifestyle immediately. For example, you need to stop buying extra snacks at the grocery store and avoid going out on the weekends to save money. You also can take more significant steps, such as switching from cable television service to Internet-based programming. You may think that you currently live a relatively frugal lifestyle, but many people can make sacrifices to live on even less money than they have been living on. By scaling back, you can stretch the amount of money that you receive from unemployment benefits further.

Seek Extra Money

When you take these important financial steps, you can more easily manage your finances while you are unemployed. However, be aware that you may still have trouble paying some of your expenses. In addition, you need to find a way to get by until you receive your first unemployment check. After all, you still have bills to pay and food to buy. Using a short-term loan, such as title loans Tampa, may be a smart idea. With title loans, you can pull equity out of a car that you may currently own free and clear. These loans typically require full repayment within a few weeks.

It may be several weeks, months or longer until you find a new job. You may have some money available in your savings, investment and retirement accounts that you can draw from to help you get by during your unemployment period as well. However, when you follow these steps, you may limit how much money that you pull out of these accounts. These steps can also help you to stretch your personal savings so that there is a reduced chance that you will run out of money before you land a new job.