Managing your money can be tough work, even if you have a steady job. But once that job disappears, dealing with finances can not only be a challenge, but down right scary. Whether you’ve been laid off or had to stop working due to an injury, being without a job can put a big damper on your bank account. Luckily, there are a few things you can do while unemployed that can help you make the most of the money you do have and increase the chances of you bringing in more money in the future. To show you how, here are three tips for managing your money when you’re out of work.
Take The Correct First Steps
Once your job is gone, there are a few first steps you should take immediately to ensure that you’re getting yourself off on the right foot. According to Samantha Gregory, a contributor to USA Today, the very first thing you should do is look over your finances and find the places where you can cut back. Once you’ve done this, you’ll be left with whatever debt you have that you need to pay off on a regular basis. To ensure that this still happens, contact your creditors and see if they’re willing to make any modifications to your minimum payment while you’re without a job. Finally, start to file for unemployment so you’ll at least be getting some kind of money coming in while you search for a new job.
Be Careful With Your Debt
Without a lot of money coming in from a steady job anymore, you might reflexively start using your credit cards a lot more than before. However, this can put you in an even worse situation further down the road. According to Chris Bibey, a contributor to Money Crashers, it’s much smarter of you to look for ways to pay for things or pay off bills with cash rather than putting them on credit until absolutely necessary. You can try doing things like selling your belongings or odd jobs to still bring in a little bit of money so you don’t have to go too far into debt.
Prioritize Finding A New Job
Now that you don’t have a steady job anymore, Wise Bread shares with U.S. News and World Report that you should now make looking for a job your new full-time job. While you don’t necessarily have to spend eight hours a day on the hunt, you should devote a big portion of your days to looking for work. When it comes to getting a job, you often get out of it what you put into it, so don’t get too casual or inconsistent with your search if you’re hoping to get something you’ll love and will help you get your former standard of living back.
If you’ve recently lost your job, consider using the tips mentioned above to help you manage your money until you’ve got more income back in your pockets.