Anytime one is faced with sudden job loss, it is incredibly important to get your finances in order. You should already have a pretty good idea of what your monthly expenditures are, but if you do not, now would be a good time to start doing a monthly budget sheet. Since you will need to live on considerably less money and you have no idea how long your employment will last, making every dollar stretch just a little bit longer is a good idea. Here are some tips to help get your finances in order:

Before you do anything, spend some time assessing your own financial picture. Look at the bills you have due, when, and how much money you have in the bank and in cash. Now look for any money you might be able to tap into if needed, such as savings bonds, children's savings accounts (Putting food on the table and a roof over your head is more important than what you have saved for college, as you can always save when things turn around), whole life insurance policies you can borrow against or cash in, and loans others may owe you. Only consider taking money from your IRA as a LAST resort.

Many people find it very helpful to keep a running monthly balance sheet for household expenditures. This way you'll know exactly how much money you need per month to pay for the necessities. As you look at your monthly expenditures, make a determination with your family if you can live without it for a while. If you can do without it…cancel it. This might include cable, lawn service, cleaning help, etc. Try to eliminate as many monthly expenses that you can. Stop eating out, plan your meals, clip coupons, and buy groceries. You will be surprised at how much money you can save by simply cutting a couple of expenses here and there.

As you look to cut your expenses here and there, make sure that you call all of your creditors and tell them that you've lost your job. Most will be willing to work with you, suspending any payment for a period of time or at least reducing the monthly payment to a level that you can work with. Student loans can be put on deferment until you get another job. The key to working with creditors to reduce your payment is calling them before you get delinquent. This shows good faith with your debtors, and knowing you can skip a few payments will ease the stress on you for now.

After you fully assess your financial picture make sure that you apply for all unemployment benefits that you were eligible for. Depending on where you live, this might take awhile to get processed. In most states, this can be done on-line. You might also be able to get an idea of what your benefit might be online. Remember, there is no shame in applying from employment benefits. A little help from the government when you need it most might be the difference you are looking for in getting through your unemployment.

Undoubtedly, worrying about your finances will be the biggest stressor on you during your job search. The quicker that you get your finances organized the more time you will be able to spend working on your job search.

"ILostMyJob.com provides information, ideas, and inspiration for people in job transition. If you have lost your job and need additional help, may we suggest you find local resources on our search by state page or browse additional articles in our Get Help library. For tips about how to perform a job search, we encourage you to visit www.careercentertoolbox.com. In particular, these articles talk about having a personal strategy and mistakes to avoid. Please feel free to start your week with our Outlook News podcast at ILostMyJob.com/monday, and to receive information and updates by email, subscribe to our free Job Transition News newsletter. Thank you for your visit, and all the best!"

Comments (0)

Name

Email

Comment

smaller | bigger

I have read and agree to the Terms of Usage.

Write the displayed characters

Add Comment