Today, the ADP employment report came out. Unfortunately, the news is that more jobs have been lost than expected. While the rate of unemployment is slowing, it is still approaching 10%. And that means more people are getting laid off. While there are some things you can do to help prepare your personal finances to survive the recession, there are some completely different things you can do in order get through unemployment at this time. Kevin at Bargaineering offers some keys to making it through unemployment:
- Manage your time. You should get a schedule together, involving networking, job hunting, resume building and family time. While you don’t have to be too rigid, you should still have plans for your time, rather than letting yourself collapse into listlessness.
- Cash flow. File for unemployment benefits. Consider starting your own business. Look for legitimate online opportunities (like blogging). Find a part-time job. Even if you have a sizable emergency fund and savings, it’s best if you use as little of it as possible. You don’t know how long you will be without a full-time income.
- Reorganize your finances. You will need to cut your expenses immediately. Get rid of things that are unnecessary. And don’t use your emergency savings to wipe out your debt; you might need that money for things like food. Make minimum payments until you are back on your feet. And, if you have to choose between making payments on unsecured debt and your mortgage, go with the mortgage.
Really, it requires some quick thinking, and the ability to look for a silver lining. Kevin also recommends that you manage your attitude, trying to fill your hours with physical and mental labor so that you do not become idle. Besides, positive people are more likely to be considered for jobs — and they are more likely to make it through the recession relatively intact.