The Covid-19 pandemic has tremendously affected many industries in negative ways, including putting many employees out of work. If you have lost your job during the pandemic, you are not alone. You may never have been in this situation before and are unsure as to how to proceed so that you can survive financially until the job market recovers. Unemployment can be frightening, but speaking to a financial planner during this crucial time can help you stay on track to manage your finances when times are tough so you can stay afloat. Here we present to you some tips on how to financially get through your unemployment during the Covid-19 pandemic.
1. Figure Out All Your Monthly Expenses
You may have a general idea of what you spend each month, but it’s important to actually make a list of each of your monthly expenses so that you can then create a budget. Seeing all your expenses in one place will give you a much better idea of where you are spending the most of your money and where are some places you can cut down expenses. Even something like buying a cup of coffee each morning adds up and can be an easy place to cut costs. You may be surprised by how much you spend on certain items when you add everything up. Other expenses are non-negotiable without making some major changes in your life like moving or giving up your car, which you may not be willing to do. Which brings up to step number two.
2. Make a Budget
Creating a budget helps you make a clear plan for how you will spend your money each month. Even if you receive unemployment payments, your monthly income will likely be significantly less than it was while you were working. That means you will probably need to spend significantly less each month. The preparatory step of laying out all your expenses will help you find the areas in your life where you can cut back on spending.
3. Pay with Cash
Since payment through a credit card is not immediate–meaning it does not immediately leave your bank account, it can be easy to fall into a pattern of using your credit card somewhat freely with the thought that you will “figure it out later” or without even realizing how much you are spending in total. Cash is a physical item that leaves your wallet when you buy something. Studies have shown that people tend to spend less when they pay with cash than with credit.
4. Apply for Unemployment
Unemployment payments will help carry you over until you are able to find another job. In the age of the Covid-19 pandemic, it might take longer than usual to find a job because so many companies are furloughing employees due to financial hardship. It also may take time for your unemployment request to go through due to the volume of people experiencing unemployment during the Covid-19 pandemic and applying for benefits, so it’s imperative that you continue to budget and not overly-rely on the unemployment payments.
5. Work Part-Time
If you have been furloughed, you can receive unemployment and take a part-time job to help you get by until you can find a new job. Considering as it will likely take longer than usual to find a new job during the pandemic (as already mentioned), it may be a while before things get “back to normal” for you in the workforce. A part-time job plus budgeting carefully will help you stay afloat until then.
We Are Here For Those Experiencing Unemployment During the Covid-19 Pandemic
Each of these suggestions will look different for each individual person and family, so it is important to keep in mind your individual needs and goals. At DeSantis, Kiefer, Shall, & Sarcone, we work with each of our clients to come up with personalized strategies to help them manage their finances. Especially during a time of financial instability and crisis, we are available for our clients to help them get through these tough times.