Ways to Manage Your Money During Unemployment

Losing your job is something that no one is prepared for. In the United States, there are 7.1 million adults that are unemployed. In a world full of budget cuts and downsizing, it is important to have a game plan in case it does happen. If you’re wondering how to navigate unemployment, the team at Check ‘n Go has put together some tips to help make this time feel a little less difficult. 

WHAT TO DO AFTER YOU LOSE YOUR JOB  

First, don't forget to take some time to process your current situation. Then, start thinking about your plan to get back to work. Here are some suggestions. 

Evaluate your expenses. Things that are not essential should be questioned during this time. Consider cutting back on things like unnecessary subscriptions and how often you eat out each week. 

Make sure that you have an up-to-date resume, so you can start looking for your next opportunity as soon as possible.  

See if payment plans are available. This can keep your expenses down while you look for a new job opportunity.  

Let people in your network know that you are looking for a job. This can be simple conversations with friends or making changes on LinkedIn to show that you are “looking for work.” People in your life want to help and are often the ones to help find next opportunities. If you are looking to improve your networking skills, feel free to learn more here.  

See if there are resources that can help you get your next job. It could be taking an online class or getting a certificate. Anything that will help you receive a job offer will help during this time.  

WHAT NOT TO DO 

Don't panic. While you are likely feeling stressed and uncertain, this is something many people go through at least once. Perhaps taking a step back will help you gain a new perspective on moving forward. 

Don't spend recklessly. A little retail therapy might be tempting but try your best to avoid this. 

Don't lose track of your routine by spending all day sleeping, overeating or watching too much TV. It's ok to get some R&R, but keep your job hunt top of mind. Make yourself a schedule of how much time you will spend on job searching each day. Sticking to a schedule or routine while unemployed can have a good impact on your overall mental health. 

IS A SHORT-TERM LOAN RIGHT FOR YOU DURING UNEMPLOYMENT? 

Once you’ve been laid off, on average it takes about three months to find a new opportunity. While money is tight, you should do what you can to pay your minimum payments on time. If you don’t, your credit score might drop 180 points. It could take months or even years to build your credit score back up.  

If you’re still feeling stretched thin, short term loan options may be a good solution. 

TYPES OF SHORT-TERM LOANS 

There are many different types of short-term loans, some may work better for your situation. Here are a few examples. 

1. Payday Loans. This type of loan might seem like a quick fix when unemployed. However, keep in mind securing this type of loan may be difficult without a regular paycheck.  

2. Cash Loans. This option may offer more flexibility when unemployed. Some lenders consider other forms of income or future employment contracts as requirements for approval. 

3. Title Loans. A title loan is a short-term loan where the borrower uses their vehicle title as collateral. If the loan isn't repaid on time, the lender can repossess the vehicle to recover the debt. 

4. Installment Loans. An installment loan is a type of loan that is repaid over time with a set number of scheduled payments. These loans typically have fixed interest rates and are used for expenses like cars, homes, or personal needs. 

SHORTEN UNEMPLOYMENT 

While focusing on your mental health is important, being unemployed should not be considered a vacation. The best way to get back to work is persistence. Here are some tips that can get you back on your feet quickly. 

Job Fairs: Check out local job fairs in your area. They're a great chance to connect directly with employers, explore different companies, and get a feel for what hiring managers are looking for. Bring printed copies of your resume in case anyone prefers a hard copy. 

Online Job Boards: Make use of sites like Indeed or CareerBuilder to explore open positions. These platforms make it easy to apply to multiple roles quickly, helping you expand your reach and uncover more opportunities 

Refresh Your Resume / Get Expert Help: Give your resume an update, or consider hiring a professional to help you craft one that stands out. A strong, well-organized resume can make a big difference in getting noticed. 

Explore Side Gigs: If you need to bring in some income while you search, consider short-term or freelance gigs. Apps and websites like Uber, Upwork, or Fiverr offer flexible ways to earn on your own schedule. 

Stay Encouraged: Keep a positive mindset, even when things take time. The job hunt can be a long road, but staying motivated and hopeful will help you push through the tough days. 

The most important thing to know is that this is temporary.  

Hard times happen, and the best thing you can do is accept the situation, and come up with a plan going forward. It is a difficult time, and you have our sympathy, but we hope that some of these recommendations will help you get through it.