• May 1, 2021
  • admin

The rate of unemployment has dramatically increased in the last couple of years due to pandemic. People have lost their jobs, some businesses drowned in debt, and the financial crisis became an every household thing.

Hopefully, you never step into a situation like this, but it’s always better to be prepped for the sudden exigencies in life. Imagine you are jobless someday with a significant financial crunch ---- so what should be your steps to deal with the crisis?

This article brings you some fantastic ideas that you can utilise at any point in time.

5 Tips to Face-Off Money Crunch

You may find yourself in sudden unemployment after being employed for years. After the shock settles in, you need to accept that it could be a while before you find work again. Here are seven tips to help you determine what to do when you’re unemployed:

  • Have a look at your pattern of expense

With a reliable source of income to count on, you can spend the way you like and easily ignore the small counts. However, till the time you don’t have a pay check to look up to, it’s essential to evaluate your expenses. Now is indeed a good time to examine how you spend your money.

For instance,

  • You may use an online budgeting app or maintain your expenses in an excel sheet to keep the daily count.
  • Also, you should gather all the paper receipts and online transactions from the last few months to analyse your total spending in different categories.

The goal here is to identify what you are spending. You can only determine what you should be spending once you’ve learned where your money already goes.

As you’re working through the process, your ultimate motto should be to separate essential spending from your non-essential spending.

  • Check where you can cut a little

Now isn’t the time to be luxurious. Instead, you should diminish your daily expenses so that your savings will be enough to sustain a few ahead.

Start by cutting out the completely unnecessary items: cable or satellite, other expensive entertainment, dining out, non-job-interview clothing expenses, manicures and pedicures, etc. Finally, try to pinpoint where you can cut necessary but variable costs. Some examples are -

  • Groceries and household items – All those you may have been used to shopping from expensive grocery stores, but now you should turn to cheaper stores and clip onto payback or discount coupons.
  • Transportation – If you currently have a hefty car payment, consider selling the vehicle and getting into something cheaper. With enough equity, you could trade in your expensive vehicle for one that has no monthly payment.
  • Try to cut your monthly bills – You may save on internet service, insurance, cell phone bills with a little try. So, why not! Perhaps it’s time to be more calculative.  
  • Put payments on hold – Are you paying on federal student loans? You can probably apply for forbearance to put your payments on hold while you look for work.

Once you get started thinking about ways to cut back, you can probably find loads of them.

  • Apply for unemployed loans

Some direct lenders offer quick unemployed loans for students, housemakers, and recently lost jobs. You can get a loan like that to sustain the coming months until you get hold of a job.

With a bit of research, you can easily find out about the available programs to help you through this time. Tap into those resources for the time being.

Of course, you’ll want to look into a new job. But till you can’t find one, this unemployed loan will aid in your essential spending. Also, this kind of loan is unsecured funding where there’s no need for collateral. At max, you’ll need a co-signer who will be your guarantor at the time of taking a loan.

  • Consider a part-time job

Once you cut short your expenses, you’ll be surprised to find out how a part-time job will be enough for you to sustain. You may take waitress or bartender jobs for a while. But obviously, you have to look out for a full-time opportunity of your genre unless you passionately want to become a bartender or waitress.

Another lovely option is to get in touch with a local temp agency. Even if initially those are part-time jobs, later they will turn into full-time opportunities with good salaries.

If you find interest in writing, you may try your hands at freelancing in the writing sector. You’ll love this part-time job that may later become your career! Further, it will help you to mend the financial scars that occurred in the meanwhile.

All the above ideas are great to hedge against future job uncertainty.

Find a roommate if you are staying alone

Do you have a large home where you stay alone? It’s time to share your space with a new roommate. It’s undoubtedly a great idea to save on rent, bills, and a few other utilities.

Having a roommate can prove beneficial for you, but the same won’t work for everyone else. Nevertheless, if you have a provision, don’t let this chance go away. In fact, you may find a friend in your roomie!  

Bottom Line

Being unemployed can be a nightmare for anyone. In case you face a circumstance like this in life, although hopefully never, the first thing that goes down is your confidence. Next in line accompanies a financial crisis. Together, the whole matter gives you sleepless nights after night.

That’s when the tips and advice mentioned above can be in your favour. Check out which of them are perfect for your condition, and decide wisely. Soon, you can come out of the financial chaos that’s happening in your life currently.

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