Managing your finances during a period of unemployment is critical. However the fact that you are jobless does not mean that are not in a position to manage your finances. All you need is to take effective steps towards managing the money you have.
1. Prepare a budget
During the unemployment period it is of utmost important that you prepare a budget of all the basic needs such as house rent, food etc. in this budget ensure that you cut all non-essential items from your budget such as going out for movies, buying new clothes, eating from luxurious restaurants. Ensure that you stick to the budget and buy essential items only.
2. Manage your credit
If you had borrowed money while you were employment, such as car loan, or mortgage. Visit the loan lenders and negotiate for a period of non-payment while you seriously look for another job. Avoid using a credit card during this period, if you are unable to pay the debt accumulated from credit cards, you may be rated adversely by the credit bureaus and this will affect your ability to acquire credit facilities in future. Never rely of credit cards to pay for your expenses during the unemployment period. Make a detailed review of all the debts you have such as car loans, mortgages and depending on the amount of saving you had accumulated decide whether you are in a position to pay any of these debts. If not let the lenders know of your unemployment situation.
3. Sell some of your assets
It is advised to sell some of your assets such as cars. If you have two cars, it is a good idea to consider selling one of them. If you had invested in the stock market, you can sell the shares. The money generated from the sale of such assets can be used to survive during the unemployment period.
4. Move to a smaller house
If you live in a large luxurious apartment that you pay a lot of money as house rent, it would be a good idea to move to a smaller home that you can be able to pay house rent or mortgage. Once you get another job, you can easily go back to the luxurious apartment.
5. Take advantage of the jobseekers allowance
Once you lose your job, it is a good idea to make enquiries from the jobseekers allowance office using the jsa contact number posted on the unemployment office website. You can find out if you are eligible for any allowances that are offered to the unemployed.
Managing money during unemployment is a daunting task, but it can be done. All you need is to make use of the aforementioned tips and you will be able to survive. Always remember to make job search a priority during the unemployment period. You may contact the jobseekers office using the jsa contact number and find out if you qualify for any allowances to keep you going before you get another job.