Author: Denise Hill / Source: Wise Bread
Losing a job can be devastating. It can throw your life into a tailspin and severely delay or even kill your progress and plans for the future. Once you receive a little help through unemployment compensation, you may find yourself right back where you started when the benefit ends.
You may have been blindsided when you first lost your job, but losing unemployment before you’ve found a replacement job can also be a sucker-punch. As difficult as it all is, you still have to will yourself into being proactive. Here are a few things you should do to prepare for the end of unemployment compensation.
Begin with the end in mind
The best thing to do immediately after you receive your first unemployment check is to plan on not receiving it. It is a great aid that can help keep you afloat until you find work. But, you must keep the fact that it is only temporary in the forefront of your mind. During normal economic times, unemployment lasts 26 weeks, or six months. (See also: How Long Can You Really Live on Unemployment?)
Reduce your spending and live off as little as possible. And do your best not to depend on the benefit. The benefit itself makes this easier because it usually isn’t enough to cover all of your living expenses. It is only assistance — similar to someone helping you up when you trip and fall. They help you to your feet. They don’t carry you.
You have to find a way to cover the shortfall and generate your own income as quickly as possible. Put yourself on a shoestring budget.
Establish spending and payment priorities, because some things may have to go unpaid. Call your creditors now and alert them to the situation and try to maintain a good relationship with them throughout the process. Downsize. Sell stuff. Get a side gig and do odd jobs. Unemployment can temporarily stop or at least slow the bleeding, but remember — it’s only temporary. (See also: 5 Budget Overhaul Tricks for the Recently Unemployed)Make getting a job your top priority
Job loss is so devastating because it is a loss — economically and emotionally. Dealing with the hurt, betrayal, and disappointment is a massive task by itself. Add to that coping with money issues and the instability it causes, and you’ve got a deep hole to climb out of. This can make looking for another job seem like a herculean effort. Try…
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