Getting By Between Jobs

Unemployment – that word alone is enough to inspire fear and dismay. And while being between jobs can indeed present a significant financial challenge, it is by no means synonymous with destitute. Most of us in our lifetimes will have to face the obstacle of managing our finances during a job transition. Nothing can make an unexpected transition like this easy, but the following tips can at least help ease the burden.

Personal-Finance-Tips

Eliminate your debt

Any sort of standing debt you have will sap your financial resources through periodic payments. Ideally, debt elimination occurs before a job transition becomes necessary. If you are completely free of debt payments you can focus the weight of your finances on survival costs.

Make sure your family understands

When a job transition becomes necessary it is absolutely imperative that your spouse, children, dependents, etc. understand the situation fully. It should be made clear that during the transition spending will need to be curtailed. Hiding this information will only cause undue stress and tension. Getting family buy-in into a simple living can be a good thing, even when things return to normal.

Cut out unnecessary expenses

You and your family should sit down and map out your monthly living expenses and look for areas where you can make cuts. Utilize online resource such as personal finance blogs to assist with budgeting and general finance information. It is critical to separate things that you absolutely must have to survive from things that are comforts but not necessities. Until you find a paying position, you will likely have to do without things that aren’t entirely necessary. This might include meals at restaurants, new clothes, new appliances, and so on. Even small changes in spending habits can add up.

Consider a temporary job

While you are waiting to hear back about your dream job, it might be a good idea to look for a temporary position. Scan the local newspaper for open positions or ask friends and family about possible job opportunities. Retail and food service jobs have high turnover rates so you will likely find an open position there. Remember that you are not committing long-term to this job – it is simply to help relieve the financial burden until you gain a more permanent position.

Avoid credit cards

The importance of this step cannot be stressed enough. Under the painful financial strain of a job transition, it is quite tempting to become reliant on that shiny little square of plastic. But accumulating credit card debt will only prolong your financial strain and potentially prove detrimental to your credit history in the future. Only charge items if it is completely necessary and be constantly aware of how much credit debt you have acquired.

By following these tips you will be able to alleviate some of the financial burden during a job transition. Just because you are unemployed does not mean you are without options.

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