Keeping Finances Healthy When You're Unemployed

When you face a period of unemployment, your finances are going to be stretched to their limit. You will have to come to terms with the fact that you no longer have an income you can rely on. You’ll have to look for ways to cut back on spending, particularly if you have kids. It’s important that you find ways to save money around the home and make the best of the situation until you find yourself back on your feet. Here are some of the other issues you should consider.

Job Seekers Allowance

If you search for jobs regularly, when you’re unemployed, you will be eligible to claim job seekers allowance or a similar benefit. This will provide you with a small amount of money to help keep you float. It allows you to avoid borrowing, and that is for the best. Borrowing money is one of the easiest ways to end up in debt when you’re unemployed. Typically, when you apply for job seekers allowance, you will have to search for jobs regularly and take one that you are offered. If you do not do this, you will no longer be entitled to this particular benefit.

Out Of Work Due To Injury

You might be off work due to an injury that means you are unable to complete your job. In this case, it is worth considering legal action. Particularly if the incident wasn’t your fault, caused by factors beyond your control. A massive number of people are believed to be living with disabilities caused by work-related injuries. If you have been injured and are out of work due to a injury, you must take legal action as soon as possible. Speaking to a personal injury lawyer will give you your best chance of winning your claim. If you do this, you may find your financial troubles are over.

Long Periods Of Unemployment

Some people find themselves unemployed for longer periods of time. In this situation, there are a few things that you should do. You should start looking for jobs that are not in your chosen career but that you do have the skill for. Working in a shop when you have an engineering degree may seem ridiculous. But, it might be your only choice in a poor job market. It’s also worth considering downsizing in this situation. Owning your house is an advantage because you can sell it, move to a smaller place and use the extra money to get by. This will give you a few more months where you’ll be able to look for a job that you want.

Once you financial situation stabilizes you can buy back everything that you lost.

The Road To Recovery

After you find a new job, you’ll have a chance to improve your situation in case you face another period of redundancy. The best way to do this is to save emergency funds. Put these in an ISA account with a high interest rate. That way you’ll make more money that you can use when times are hard. Be aware, this is the worst case scenario. Hopefully, you will never face another long period of unemployment.