Save Money By Downsizing After Losing Your Job

As the COVID-19 pandemic increases, more and more people are finding themselves out of work. Being able to meet your financial obligations can be challenging. Here are some helpful tips that can allow you to save money while downsizing after a recent job loss.

Start with Your Budget

It can be extremely overwhelming knowing that you no longer have a steady income, but you still have bills to pay. A great strategy for overcoming the overwhelming nature of job loss is by taking a look at your budget. You should have it clearly laid out with what your monthly expenses are, such as your mortgage payment. This will allow you to see what you’re really working with and help you determine your next move. It’s best to seek to save money with the bigger expenses first as they’ll make the biggest difference in your budget.

Move to A Smaller Place

Your housing payment is likely one of the biggest bills that you have. Therefore, it should be one of the first things that you consider changing after a job loss. You have many options available to you, and it just comes down to picking the right one. You could sell your home, rent out rooms in your home, switch to a cheaper rental, and so forth. While this can feel like a big move, it’s important to note that it will make a drastic difference in your financial situation.

Switch Your Car

We all love driving around in new cars. However, it’s up to your new budget to determine what you can afford. If you have equity in your car, you can consider selling it and purchasing a vehicle outright. You may even be able to trade in your existing vehicle for a lower-priced one that comes with a lower monthly payment. Your car payment can make up a larger portion of your bills, so downgrading to a more affordable ride can be a great way to get your finances under control.

Assess Your Food Situation

Food is likely another one of your biggest expenses for the month. Look for ways to save money in this area. It could be as simple as not eating out. You can also assess different food costs and prepare meals that are cheaper to make at home. For example, choosing to cook chicken rather than beef for your meals will usually cut expenses. Meatless meals are even cheaper, like Spicy Vegan Chili, Chef John’s Meatless Meatballs, Pinto Beans and Cornbread, or Spaghetti Aglio e Olio. Eggs are inexpensive, as are pancakes and waffles.

Saving money is a big challenge when it comes to undergoing job loss. Fortunately, there are many ways to do so as long as you take the initiative to enact them in your own life and budget. The above are just four great tips for getting you started on your downsizing journey.

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Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan