How Unemployment Saved My Life

As the United States unemployment rate hovers around nine percent, many Americans exhausted resources looking for gainful employment. As a part of the unemployment process, the unemployed looks for gainful employment, applies for applicable positions, records finding and reports to a case worker on a periodic basis.

After months of following the unemployment guidelines, gainful employment options were limited. I realized I had to change my family structure to ensure unemployment did not ruin our quality of life. Doing so made me realize, unemployment was best thing that has happened to me and my family.

Living life after unemployment involves creating and maintaining a strict budget. The first step in creating a strict budget after unemployment meant reviewing monthly expenses. Controllable monthly expenses include anything not categorized as basic necessities.

Start by reviewing monthly income. Secondly, remove basic necessities from the total with the end result being monthly spendable income. For example, monthly income after unemployment is $5,000 per month. Basic needs are approximately $4,000. Invest the remainder in an interest bearing savings account in the event emergencies occur.

Remove the excess within a budget involves eliminating cell phones, cable and dining out. Cell phone charges can exceed $100 in most cases. An additional $1,200 per year is necessary for the recently unemployed. Consider switching to pre-paid plans from retailers. Plans start as low as $30 per month. Eliminating cable costs involve finding the alternatives. Netflix, Redbox and Hulu provide constant entertainment for free or as low as $1. Dining out alternatives means thrifty shopping at the local grocery story. Look for deals and special. Sign up for rewards programs which enables greater savings.

Create a rebirth of family time after unemployment. Set specific times throughout the week where family is the top priority. Outdoor activities such as playgrounds and parks are free and accessible to all. Visit local thrift stores where games and crafts are a fraction of the cost. The time spent with family is priceless.

Unemployment is not the end of the world, simply a restructuring of the family. Explain all family members will need to be more frugal with their spending. Speak with them regarding a change in lifestyle which means not giving up their favorite items, just simply saving more.