How to Take Control of Unemployment and Prevent Financial Hardship

• Author: Natasha Yundt
• Posted: 2024-03-09

No one ever plans on becoming unemployed, but it happens. If you have recently become one of the many people dealing with a job loss, you may feel overwhelmed as you search for economic stability. There’s no need to despair; you can take a few practical steps to ensure you remain financially healthy in the long term.
 

1. Know Your Unemployment Benefits

The first and most important step to protect yourself is to learn about the benefits available to you as an unemployed worker. Each state offers a slightly different set of advantages and amounts, so research your state’s benefits as soon as possible.

The unemployment benefits program can be incredibly confusing initially, and it’s important to note that applying for benefits doesn’t mean you’re entitled to that amount. Benefits can range from $14 to $450 of the individual’s previous salary, based on their total wages earned in 12 months or the length of time a career-related job was held. You can always contact your state’s unemployment office for assistance in navigating the process.
 

2. Live Within a Negative Cash Flow Budget

Once you understand what you’re eligible for, create a budget to help you maximize your benefits and identify any expenses that can be cut from your lifestyle. Living with a negative cash flow budget is the easiest way to ensure you’re not overspending while waiting for your benefits.

Plan your budget according to your current expenses, minus your income, with room for additional costs like health insurance, transportation, and other needs. It may sound intimidating, but budgeting doesn’t have to be hard. Sticking to a plan is the best way to ensure you don’t spend yourself in debt while waiting for an income.
 

3. Investigate Other Financial Assistance Programs

Although unemployment benefits may provide a decent financial cushion for many, sometimes, it’s not enough. To help bridge the gap, look into other available programs for those in need. For example, the Supplemental Nutrition Assistance Program (SNAP) provides food stamps for families with less than a certain income level. Depending on your location, you may also be qualified for assistance with housing, child care, and transportation costs.

Many individual charities and nonprofit organizations may be available to those in financial hardship and provide advantages like free or discounted groceries, furniture, medical assistance, and utility bills. It is also worth exploring your local churches and religious organizations, as these will often have resources available to help you get back on your feet.

It is essential to contact your local social services office, where you can get a list of available resources to check through. This is especially important if you have children, as many programs offer assistance to working parents and families. The most important thing to remember is that there are many options in your corner regarding financial assistance. Don’t hesitate to explore your options and take advantage of the resources available.
 

4. Put Your Time to Good Use

Taking on a new pursuit can immediately go a long way to filling in the gaps left after a job loss, and not just in terms of income. Employers tend to value the experience of candidates with entrepreneurship, philanthropy, creativity, and even volunteer work. Each of these opportunities is a fantastic way to turn your drawbacks into an advantage when applying for jobs in the future.

You can also spend your time deepening existing skills or starting new ones that can help you stand out. There’s no better feeling than mastering a valuable skill and nothing more attractive than someone who stands out from the crowd with new capabilities.
 

5. Have a Positive Mindset

Feeling angst or pressure from job loss is normal. But, rather than getting down on yourself, try to focus on finding solutions to your financial problems. Moving through situations with a positive mindset will help you stay motivated and inspired to keep looking for the next step and beyond, giving you the strength to face the next challenge.

The most important thing to remember is that you have the capability and the power to overcome and make it through any situation. With a bit of resilience and the knowledge of your benefits and advantages, you can use an unexpected situation to your advantage.

No one ever plans on becoming unemployed, but that doesn’t mean the journey ahead doesn’t hold potential. Despite your current circumstances, staying positive and leveraging the tools available gives you the power to make a difference in your financial future.