Survive on Unemployment Income
Many people are finding themselves unexpectedly unemployed. Unfortunately, many are so shocked that they fail to put a financial game plan into place until it's too late. Although it will take a drastic change in lifestyle, you can survive on unemployment income. Below are some tips that will make sure that you aren't going more into debt during your period of unemployment.
Food & Groceries
You should no longer shopping like usual. Buy only the bare minimum, just like a broke college student. There's a reason why Ramen noodles are so cheap. Use coupons. You have plenty of time to cut and sort them, so do not buy anything you don't have a coupon for. Ask your friends and neighbors for theirs if they don't use them. Drink water, it's free. Before going to the grocery store, look at what you already have. You could probably eat for a month just on what's in your pantry and freezer. For suggestions, go to www.recipematcher.com and enter ingredients you have and it will provide you with recipes for them.
Lights and Appliances
Turn off all lights and electrical devices when you are not using them.
If you're not in a room, the light should be off. Even when you are in a room, many times you don't need the light on. If your bathroom has a window, you don't need a light to shower unless it's night. Also, since it stays light until 8:00 or 9:00 p.m. during the summer and early fall, you don't need to turn lights on in the living room, den, kitchen, etc.
Do not watch television all day just because your home now. It should be off for most of the day. Remember that if it is usually off when you are at work, your bill will be higher now if it's on.
Your computer will need to be on as you search for jobs and update your resume. However, shut it off if you are going to be away from it for more than 30 minutes (i.e. lunch, exercise, working in the yard, etc).
Unplug any appliance you aren't using. Ones that are used frequently should be on a power strip that can be turned off when not in use.
Eliminate Bills
Go over all of your bills with a fine tooth comb. Eliminate the ones you can temporarily do with out and find ways to reduce the others.
Things to stop completely, Netflix, gym memberships, lawn service, cleaning service. Also if one spouse is home, you can also stop daycare during unemployment because one parent is now home.
If the only thing that runs on gas is your furnace/heating system, call up your gas company and see if you can have them shut off the gas during the summer to eliminate the bill. Again explain your situation and they will be more likely to work with you.
Phone Service
Do you really need a land line phone. Now may be the time to drop it all together. If you don't drop it, at least cancel all other services associates with it like call waiting, call return, etc. Call your cell phone provider and see if you can downgrade service. Canceling will usually result in a fee, but downgrading usually doesn't if you tell them you are unemployed. If your plan charges extra for text messages, then do not use it. Immediately disable that function in your phone. Make your kids aware of this too.
Cable and Internet
Consider dropping cable all together. Most cable channels have their episodes available to watch online. You can also go to www.hulu.com to view past episodes of television shows. If you keep cable, drop down to the very basic package. Discontinue HD and other premium channels.
Since you can't drop your Internet (because you'll be looking for a job), look around for better prices.
Air Conditioning
Turn your air conditioner up to the high 70's during the warm months and no higher than 70 during cold months.
If the outdoor temperature is below 70, turn off the AC and open the windows. This is usually at night or early in the morning.
If you have an attic fan, turn off the AC and use the fan instead.
Credit Cards and Student Loans
Pay only the minimum on your credit cards and other debt.
If you have student loans, call up your loan servicer and have your loans put on "hardship deferment". Basically they will allow you to stop payment until you are re-employed.
Restaurants
Do not eat out. You can't afford it. Sorry, there's really no way around this. Even with coupons, you can't eat out as cheaply as eating at home.
If you happen to be out driving, don't stop and get a drink. Always take a drink from home so you won't be tempted.
Gasoline
You won't be driving around all day, so your gas costs should be cut in at least 1/2, if not more. Remember this before you get in your car to drive somewhere that you may be able to walk to.
The above tips will dramatically help to reduce your overall spending during unemployment. Remember that the goal is to temporarily reduce expenses until you are re-employed. So if you realize that you need to cut off your cable, it is easier if you remind yourself that it's only until you get back on your feet; not forever.
Although some of these adjustments are hard to make, it will be even harder if your home goes into foreclosure because you had premium cable channels and ridiculous cell phone bills.
