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Budgeting Your Finances During Unemployment

Sun, Jun 3, 2012

Personal Finance

Sticking to a tight budget is important whilst unemployedUnfortunately, in today’s economic climate, unemployment is increasingly common and budgeting your finances after losing a job is a necessity. The obvious approach is to cut back on luxury items and select low cost alternatives for remaining expenditure. Your exact income during your time of unemployment will depend on the amount you are entitled to from the government. Entitlements could include rent or mortgage relief or any other supplemental allowance in additional to the standard benefits.

Eliminate

The first items to eliminate will be the obvious luxuries. Do you really need that complete Sky Digital package? Unless you are tied to a contract, reduce your commitments to the basic package – whatever is necessary to maintain family harmony. Find a balance for kids’ requirements and your own. Eliminate social activities that will not lead you to finding another job. This includes weekly meals with your wife or any other social activity that has a cost involved. Eliminate any purchases other than essentials i.e. forget about clothes shopping, DVDs, CDs etc. until new employment has been obtained and budgeting your finances will be a breeze.

Buy Wisely

Grocery shopping will now become a selection process, where branded goods are avoided for the most part. As you cannot forecast how long it will take to find another job, it is best to budget your finances from the beginning, in order to ensure that your savings become an emergency resource only. The only bills that remain unchanged will be your telephone or internet (necessary for finding new job), utility bills and your rent or mortgage payments.

Finding a new job will be your first priority and the internet is a wonderful resource for this activity, with numerous recruitment agencies and job portals available. Upload your CV to as many suitable jobs as possible and continue to do so on a daily basis. Never apply to a position and then stop looking for employment – you have to take a blitzkrieg approach to job hunting. If you send a sufficient number of applications, you will be successful in the end. It is better to be considered for a large number of positions rather than wait for confirmation from one.

Picture: Jakub Krechowicz – FotoliaSimilar Posts:

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