For any adult, there’s no word scarier than unemployment. Whether caused by business closures, layoffs, health issues, or otherwise, losing your full-time job can result in major problems. In fact, according to research by the American Journal of Public Health, unemployed individuals experience increased rates of anxiety and depression. However, there are several ways you can take charge of your funds, manage your savings, and ultimately get back on your feet. Here are important tips that can help you better manage your finances while unemployed.
Apply for Unemployment Benefits
Unemployment benefits are a government-controlled program that is mainly designed to offer short-term support to aid individuals to survive financially when they are unemployed. If you haven’t applied for unemployment benefits by now, then this is a good place to begin. There are certain requirements you must meet to be able to apply for unemployment benefits. However, it is important to note that you cannot be receiving unemployment benefits and severance pay simultaneously.
Monitor Your Personal Expenses
Although going into defense mode and holding onto every dollar you have may seem easy, tracking your personal expenses and understanding where you are financially will give you a sense of peace and aid you in budgeting. While you are unemployed, it is important to be proactive when it comes to budgeting. To effectively take control of your finances, you must have a pragmatic view of your expenses. Furthermore, you must fully understand every aspect of your unemployment benefits program. For example, if you receive benefits from Ontario Works, you have to know everything about this program. The Ontario Works payment calendar will also be essential in aiding you to budget your monthly spending.
Search for New Income Channels
While you are focused on getting a full-time job, it is also a good idea to consider additional or alternative sources of income, such as part-time jobs, side gigs, and temp work. In today’s ever-changing economy, you could even discover that numerous side gigs are more lucrative anyway. By doing this, you’ll be more at ease regarding your expenses while giving you more time to conduct an in-depth search for full-time employment.
Consider Applying for a Loan
While relying on loans too much during unemployment isn’t ideal, they can serve as a great alternative to aid you in bridging the gap between your expenses and your income. This could include personal loans, lines of credit, or home equity loans. However, you have to ensure that you aren’t biting more than you can chew. So, when you are applying for a loan, it’s best if you borrow the amount you can repay in time.
Take a Course
Similar to certifications and training, taking a course can be a great way to stay sharp during unemployment whilst also learning something new. When you are unemployed, it’s quite easy to forget all about this option because many courses actually cost money. However, this can be extremely beneficial for people between jobs, as it keeps your brain sharp and focused.
While unemployment stats are increasing with every passing day, there are various steps you can take to improve yourself. While being unemployed can be a challenge, these above ideas can aid you to get the best out of an awful situation. Furthermore, you can even plan ahead by developing an emergency fund that could serve as a lifeline in a financial crisis.