Controlling Your Finances While You Are Unemployed

If you feel overwhelmed by your financial situation, talk to your banker or go to a nonprofit credit counseling agency for help. It's often harder to cope with the stress of being unemployed than it is to make ends meet…

Losing a job is frightening, but you can still control your financial affairs if you plan carefully and use money-stretching tips while you're looking for your next job.

The first crisis of unemployment is a financial one. There will still be bills to pay. Find out immediately about any benefits you may be eligible for, such as state unemployment or food stamps. If you're not able to pay your bills, tell your creditors about your situation. Most are willing to extend payments or help you work out a schedule to pay your debts. Honesty is the best policy.

If you feel overwhelmed by your financial situation, talk to your banker or go to a nonprofit credit counseling agency for help. It's often harder to cope with the stress of being unemployed than it is to make ends meet, especially if yours is a two income household. If you're out of work for a long time, you may have feelings of self-doubt to deal with.

Communicate…

Talk to your family about your financial situation and involve them in decisions about spending. One of the most difficult things about being unemployed is realizing that you may have to lower your standard of living. Don't pretend that nothing has happened.

See how much your family owes by adding what you own and subtracting what you owe. This is your net worth. You may have assets that can be converted to cash. To balance your income and outgo, you must know exactly how much money you have coming in and how it is spent. Use your check stubs and receipts to estimate what you spend on flexible expenses. Evaluate these expenditures and make any necessary changes.

Stay insured…

Anticipate upcoming big bills such as insurance payments and plan ways to pay for them. Be sure your family is covered by adequate life and health insurance while you aren't working. You may be able to apply for individual insurance with the company your employer used.

Use your savings or emergency funds sparingly. Try not to borrow money while you're unemployed. It always costs money to borrow. Let your financial institution advise you about withdrawing any large sums from savings or about taking out a loan. They may be able to help you save money or keep you from losing all the interest from your savings.

For more information on managing your money, contact your local county Extension office.