While life is unpredictable and may throw a curveball once in a while, being laid off is probably one of the biggest challenges people have to face. If you suddenly don’t have a regular source of income and still have dependents and financial commitments, you may feel depressed and frustrated.

Have you been suddenly made redundant? This is what thousands of people are facing during the current pandemic. While you are filling in job applications and improving your CV, the following tips may help you manage your personal finances during unemployment.

What to Do If You Have Been Laid Off

Many Americans feel scared when they even hear the word “unemployment”. There may be different reasons for being made redundant: you may have health issues, you may lose a job due to business closures, layoffs, COVID-19, or otherwise. No matter what reasons you’ve had for being laid off, it’s normal to feel anxious and depressed.

The survey of StepChange Debt Charity has revealed that unemployment and low income are among the top reasons for consumers seeking assistance with their debt issues. If you also feel unsecured and uncertain about your financial future, it’s time to take action. Keep on reading to find out about the best methods of avoiding monetary stress as maintaining your financial health is the key to managing your emotions and physical wellness.

Tips for Managing Your Money While Unemployed

Below is a list of tips and professional advice on how to cope with financial stress and manage your personal funds even when you’ve been laid off.

#1 Understand What You Can Afford Now

It’s very important to make a budget. Your first aim is to collect all the information about your debts and current income as well as your spending on a monthly basis. You need to have a full picture of what is going on with your personal finances at the moment. Having a clear picture is essential if you want to maintain your financial health and get rid of temporary monetary disruptions. You may gather all the necessary data by:

Checking your credit report from three main credit reporting bureaus and making certain everything is correct in them.
Checking the records of your accounts, bank statements, and letters from creditors.
Including sums for things that you don’t pay regularly such as vets or medical bills, Christmas gifts, etc.
Writing down what things you’ve purchased last month

#2 Separate Important Expenses from the Rest

You need to monitor your current expenditures to learn how much you spend regularly and what things can be trimmed off. There are many budgeting tools that can be helpful. You may download some applications or write down your expenses. Such online tools as Mint and others are free to use and may synch all of your accounts to have everything in one place. If you urgently need to cover some overdue bills or remain financially afloat, the PayDay Say loan apps may help you a lot.

Make a list of all your present income sources if you have any. If you are completely unemployed you may list what you have in your savings account or emergency fund. Then calculate everything you spend cash on during the month. Divide these costs into important ones and nonessentials. After that, you will see what expenses can be trimmed off to lower your monthly spending.

#3 Explore Different Assistance Programs

Once you have been made redundant, you may benefit from several assistance programs and available options for the unemployed. While you are looking for a new position and scrolling through job openings these programs may come in handy.

File for unemployment. Don’t hesitate to file for unemployment benefits once you’ve been laid off. These insurance payments are different in every state across the USA but generally, they can replace half of your usual income for about 26 weeks.
Use food stamps. Do you have an emergency fund? Plenty of people who don’t have any funds set aside for emergencies may benefit from using assistance with food and groceries. You may apply for the Disaster Supplemental Nutrition Assistance Program or the federal Supplemental Nutrition Assistance Program in your state. This is a great option for getting help with buying groceries for your family. Additionally, there is the Temporary Assistance for Needy Families program.
HealthCare. While you have been made redundant, you still have options for healthcare at a reduced price or even for free. The Health Insurance Marketplace may help you obtain health care coverage. The eligibility for this program is defined by the income level of the consumer and his/her household’s size. If you have kids and also need insurance for them, you may take advantage of the Children’s Health Insurance Program (CHIP).
Local nonprofit organizations. If you can’t qualify for the above-mentioned federal programs or want to have more options, you may benefit from applying to one of your local nonprofit organizations and charities. Feeding America website offers a list of pantries and food banks for people.

#4 Search for Side Gigs

The above-mentioned steps may help you overcome temporary difficulties and remain financially afloat. However, you also need to look for side gigs to fund your daily needs until you are fully employed again. Alternative streams of income and even part-time positions are extremely helpful in the current economy when everything isn’t stable.

Search for appropriate freelance positions, remote work, flexible jobs over the weekend – it may help you support your family. A side hustle may even turn into a full-time job later on. Use this time to explore other options and try new careers. Such sites and online platforms as Guru, Upwork, and FlexJobs may assist you in this search.

In conclusion, there are always ways out of any tough situation including unemployment. Manage your monthly budget, take control of your finances, and maintain your monetary health to get through a challenging period in your life. These practical tips will help you avoid pitfalls, get stock of your present situation, and keep on top of your finances until you become financially stable again.