Unemployment is meant as a temporary stop gap measure
Suddenly losing your job is no picnic. You're going to have to scramble to make ends meet and find a new job before your unemployment benefits run out. Unemployment is only meant as a temporary stop gap measure that will get you by until you're able to find permanent employment.
Living on unemployment is going to require a lot of financial discipline on your part. You're going to have to set your priorities and stick to a very tight budget. The first thing is to remember to prioritize keeping a roof over your heads. If you don't have an address it's going to be a lot harder to find a job.
Pay your rent or mortgage first and then pay your utilities. Make every effort to cut back on your utilities usage during this time. Turn off the lights, turn off the computers at night, turn the thermostat down and wrap up in a warm blanket or sweats to stay warm. Do everything you can think of to lower that electric or gas bill and then some. It may be a challenge at first but you'll find ways to do it if you really think about it.
Of course you still need to eat. Chances are you have enough food on hand for a few weeks if you reach back into the far recesses of your cupboards and freezer. Make every effort to use this food up before you go to the grocery store and start drooling over those juicy looking steaks or that sandwich in the deli.
Go to the local food bank and swallow your pride and get signed up. This is an emergency, and every bit of food will help you in making ends meet by freeing up some of your money. Make dinner from scratch as much as possible and, if it is summertime, consider planting a garden. Many people save seeds from year to year and have plenty to share. Ask your friends and family if they have any extra and be willing to dig up a patch in your yard for a small garden.
You'll most likely need your car to get around in your job search so you'll want to have your insurance up to date and keep your car running. Scale back if you can to the bare minimum insurance coverages and make sure that you have some gas in the car. If you have a car payment, see if you can defer any of it and if you can't, consider trading your car back in for something less expensive. Remember, it's more important to have a running car to get around in than to have the latest model car to get around in. Whenever possible consider walking to your destination in order to save on gas (and the exercise is great for your body and mind as well).
Make a plan. It's easy and tempting to take a few weeks “off” and just lay around the house and then job search, but this is the worst thing you can do. You'll lose valuable time in locating a job and you'll be wasting your financial resources as well. If you don't get up and get moving you'll start to get depressed and find yourself in a downward spiral.
Plan to get up at a normal decent time and go through a morning routine in order to keep yourself focused. Apply for at least one job per day and consider joining a temporary work force at a temporary agency in the interim. Sometimes a temporary job will lead to a full time job and you'd be surprised at the opportunities you'll be given.
Network with everyone you know. Tell them you're looking for a job and be willing to take just about anything until you find what you're looking for. Yes, taking any job or a temporary job will reduce your unemployment but it will also extend it in case you need it longer.
You might also consider volunteering at a local agency. You'll be doubly blessed by this step. You'll be giving to a needy public and you'll be retaining some much needed job skills. Sometimes even a volunteer job position can lead to full time work so don't nix anything that could gain you a job. Be willing to go the extra mile. You never know when a stranger will wander by and see your efforts and offer you a full time job.
Have a family meeting immediately and let everyone know that things are going to be tight for awhile although they'll turn around eventually. Call your creditors (credit card companies, doctor's with outstanding bills and such) and explain the situation. Let them know that you are unable to make full payments at this time but that you can pay a specific amount and get them to work with you.
Unemployment isn't necessarily a lot of money, but it will get you through a rough patch if you watch how you are spending your money closely and involve the entire family in your efforts to reduce spending. Who knows, you may find your reduced budget works so well that when you are finally back to work you may continue on with the budget you've drafted in order to continue saving money.
