Surviving Unemployment -- Making Sacrifices for an Unemployed Life

Assuming you won the appeals process and your former employers are now paying the unemployment insurance, don't expect to make the same amount of money through the unemployment office that you did while employed. There are tons of elements you must cut from your comfortable lifestyle. It was hard for me when I drew my first unemployment check, I didn't realize I had so much debt that I was basically forced to live off of 67 cent boxes of Macaroni and Cheese until I started making sacrifices to cut back on all my expenses. Luckily, my parents were in the area and provided some assistance when I needed it. But many aren't so lucky.

One of the requirements the unemployment office will tell you, is that in order to keep your benefits you must continually search for work. Either on your own or check out their listing of jobs being offered to unemployed individuals. If you are not sure how to find this job board, call the office in your location and ask them. My experience is in North Carolina so check with your local Unemployment Office if you can't find it.

But we'll get to that in another article, right now this article is about sacrificing habitual purchases your used to and reducing costs to better manage the money you're now receiving.

Cutting Credit Card Debt

While I understand this may be easier said than done for some people, keep in mind I'm only making suggestions. It's actually up to you to make these minor sacrifices to survive.

First, you need to reduce as much debt as possible starting with your credit cards. If you're like me when I first stopped working. I had up to (4) four credit cards with outstanding debt on them. Check your account, if anything put at least $100 into your saving account from your last pay check for groceries, clothing or medical expenses. Make a list of all the outstanding debts you currently own and see if you have any cards you could possibly pay off now and close that account. If you have enough to pay off at least one of your credit cards, then do it and make sure to call them personally to make sure the account is closed. If they ask why, remember, you don't really owe them an explanation because technically its not their business as to why you chose to close an account with them. They will only try to find excuses and reasons as to why you should continue receiving their services anyway. You don't have to be rude, just simply say "for personal reasons I don't wish to discuss."

Review the remaining debt and calculate what it would take to close another account and start paying more than the minimum amount due to one of the cards. For example, if the next lowest card you own only has $9.900.00 left on it and the minimum payment due each month is $180.00 start paying at least $190.00 or even $200.00 if you can afford to pay that much in order to drop it down low enough to close that account. If this is not possible, negotiate with one of the companies you owe money to about any consolidation programs they may have available. The company you decide to go with is the one you need to explain your situation to and that you want to consolidate the other cards into that account. Because you're unemployed but receive a steady benefit, the two of you may even negotiate the amount you are willing to pay each month to pay off this debt.

Cutting Back Comfort Services
Now that you have the debt situation figured out, let's talk about comfort services. Comfort services such as memberships, cable services, cellphone service, etc. Isolate the things you can do without or find a reduce the cost of the services like down-grading cable services or switching cellphone companies. Most people pay for cable services for movies and channels they don't watch anyway or pay for memberships to gyms for a good workout. Hopefully this unemployment will only be temporary depending on the jobs available in your town, so don't panic. Remember, this is only temporary so you can survive your unemployment. Once you find a job, you can't afford these comfort services. Most cable companies offer discounted or basic services that are more affordable if you ask them or even switch to a company offering the same services at a lower rate. As far as getting a good workout, most towns have parks with trails you can walk on with a few workout stations placed along the way, fields you can enjoy sports on and still get a good workout. You just have to look around. Besides, fresh air is much better than smelling sweaty bodies working out. And if you own a dog, what better way to combine exercise for you and your dog by taking a Frisbee along with you on your walk.

Name Brand versus Store Brand products
Once you cut back on comfort services, start re-evaluating how you shop and cook. If your used to fancy meals, don't worry you don't have to give them up. Just start looking at store brand products, they're practically almost the same quality as the name brand products and often cost much less. The idea is to save money. This was hard for me at first since I was so used to buying a certain bran of oatmeal, cereal, milk, coffee and creamer that are often a little costly for the small amount of product actually contained inside the packaging. For example, a box of cereal like Fruit Loops is around $4 a box and the store brand version of the cereal "Fruity Ohs" packaged in a bag cost around $3 and you get more cereal. The ingredients and calories per serving are practically the same, so you're not going to lose much and they both taste exactly the same. Most store brand items are often placed on the lower shelf beneath the name brand products. The same goes for frozen meals, veggies and meats. You can save a bunch of money switching to store brand products and still enjoy the foods you enjoy. Who knows, you may even afford to create even fancier meals with the money you save. One of the best sites that offer money saving meal recipes is Sandra Lee's Money Saving Meals at Food Network Online. Which kept most of my meals interesting even on a strict budget after paying bills.

Coupon Clipping Days
Remember when your mother would spend Sundays clipping coupons from the local newspaper or magazines? Remember complaining about the old lady in the check out line sorting through a huge box of coupons to buy one bag of french fries? Don't laugh. To save even more money, you are about to join the coupon clipping society too. Every time you go to the store, the store offers newspapers at the front door with a list of what's on sale and a few coupons. Some products have coupon boxes above them to help you save money on their products. Take them. Even if you don't use it right away, you may later when you shop again. If the store offers VIP cards apply for one, this actually offers even more discounts on store brand products.

Used versus New
If you have a habit of purchasing the latest game, music CD or movies. This may put a bigger dent in your budget than groceries if you don't start cutting back how often you collect these items or learn to settle for used items. I must admit, I'm a gamer. It's my only means of relaxation after a long day of job hunting, and my only social network with friends who also like competitive online gaming. If they made that a professional sport, I would be considered a heavy-weight in gaming. And I understand that when the latest hit-single CD, newly released game or movie hits the stand everyone wants that shiny package in their collection. But until you find a job, that's not really going to happen often.

Remember, you have to watch your budget now. To get my game fix, I have found game stores that allow me to trade the games I don't play anymore for newer games. And you'll be surprised at how many new games return to the store because a customer who spent $59.99 on a new game changed his mind and wanted something else. That $59.99 game is now reduced to either $49.99 or $39.99 depending on the game's popularity. Trade in two or three games you don't play anymore and that game is now $20 to $15. Some movie stores even allow trade ins in much the same way.

Another good source to find items for less is searching the local Flea Markets. Many people don't understand the value of a game, CD or movie. They just want to get rid of it. So instead of paying around $40 for a copy of say "Legion" on Blu-Ray DVD, you may find a copy for only $20 or less depending on the vendor. You can also search the flea market for furniture and appliances that are in good working condition if you need to replace the ones in your home.

Another good place to find discounted music, movies or games are local yard sales. Most communities post upcoming yard sales in the community newsletter so just mark the addresses hosting yard sales and go take a peek. There is nothing wrong with slightly used items. Plus you can negotiate an acceptable price with the families hosting the sale. If the family is moving, they will be more willing to lower the price just to get rid of it because they must meet a weight requirement to have their belongings shipped to their new home.

Thrift and Goodwill stores also offer good items at discounted prices as well. If you need to repair something in your home like a broken window or dented door, businesses like Habitat for Humanity sometimes have a warehouse where they sell doors, appliances, furniture, etc. That have been taken from refurbished homes to sell for funds that purchase the equipment needed to build homes for people in need. There is nothing wrong with the items, in fact most are in very good shape and costs way less than purchasing a new window or door from a hardware store like Home Depot or Lowes which is now outside of your budget anyways.

Remember to any Money you can
It's going to be tough for the first few weeks as you start cutting back on expenses. But remember, once you get into the habit of saving money, you'll find you have enough to pay your debts and pay your bills for easier living.