Millions of consumers suffered job loss and unemployment after the recent economic meltdown in the US. The way you manage your financial situation will determine whether a job loss and unemployment is a temporary set back or it is a potentially life-changing disaster. The decisions you make now might have an immense impact on your financial future. Therefore, if you are unemployed then you should start looking for a way out to make money so that you do not incur overwhelming debt and enroll in a debt relief program.
When you are unemployed, you still have to pay rent, utilities, as well as health costs and to top it all somehow afford groceries. Unemployment benefits will not last for long, so there’s little cushion.
There are ways for the unemployed to pick up some additional money and avoid complicating their financial situation. Here are a few financial strategies to help you stay afloat and maintain your pride:
- The first step, when you become unemployed is formulating a stringent budget plan. Budgeting helps to curb your habit of overspending so you can stay within your means. You can save a substantial amount of money each month by looking at your current expenditures and cutting them to the bone. Look especially at recurring charges like cable bills, gym memberships, etc. Perhaps eliminate your landline phone or replace it with Skype or MagicJack. Since you will have more time, prepare more home-cooked meals and avoid restaurants and fast-food. While you are preparing your meals avoid processed foods and do the preparation yourself and you will save even more. In the state of unemployment you must save as much money money as possible so that you can use it for other necessary things.
- Your next step should be to file for unemployment with your local unemployment office. Remember that the unemployment benefit might vary from state to state. Your unemployment benefit is based on the the amount you were earning from your previous job. The entire process of collecting unemployment can be tedious. Remember that unemployment benefits last for 26 weeks. If the state jobless rate is high then those benefits may be extended for an additional 13 to 20 weeks.
- You can sell your clutter, everything from used books to unused gift cards. There are many people who might be eager to buy these things. Ebay is a great place to raise cash from things you no longer use. Books can be sold on Amazon as well as purchased by simply creating an account.
- If you have your own blog then you can use it for earning money. You can place Google Adsense in your blog so that you can get a commission from the ads when the visitors of your site click on it. But make sure that you have high traffic in your blog otherwise the Google Adsense will not be beneficial for making money. Try to spend more time on your blog or website to increase the traffic as it will help you reap profit from Google Adsense.
- Start your own consultation business if you have an expert knowledge in a specific field. After the economic depression there are many companies that require consultants to manage their downturn situation effectively. The consultants usually charge more money per hour than a salaried worker. If you can promote your services properly it will be one of the easiest means to make money.
About the Author:
This is a guest post by Marie Nelson who is a financial writer. He enjoys helping people with free counseling and advice on finance related topics and helping people solve their debt problems.