How to Effectively Survive a Job Loss…

The unemployment rate, especially for African-Americans, continues to dip instead of improve. Simply put, there are millions of Americans out of jobs. Although there are companies who post advertisements for new jobs, many can not hire due to unflattering economical and stock changes. So, how can someone survive a job loss if no one is hiring?

To maintain a steady lifestyle, without any major setbacks, there are effective ways to accomplish this. For example, financially, it is important to pay attention to spending habits and your savings. Take an assessment of what your current financial situation is. From there, devise a plan that will allow you to “maintain” until you find another job. Other suggestions to survive a job loss are as follows:

1. Reduce your household bills – Utility bills (i.e. gas, electric, water, cable etc) can be reduced on a monthly basis. Take a close look at your bills to determine when the usage rates are highest. Determine if your thermostat is higher  in winter months (above 65 degrees) or too low in summer months (below 70 degrees). If so, make this small adjustment to your thermostat and begin to see a difference on your monthly statements. Reduce the cable bill by unsubscribing to channels you barely watch. Adjusting your habits within your home can put money back into your pocket.

2. Ask the government for assistance – Once you are laid off from a job, you have the right to apply for unemployment benefits. In addition to unemployment, there are other programs that can assist you in staying afloat. For instance, Medicaid, Food stamps, Mortgage assistance programs are available in each state. These programs do require certain qualifications to apply, but don’t let that stop you. Don’t be embarrassed to apply, that’s what they are there for.

3. Apply for low-cost healthcare coverage – We all know about the options offered on Healthcare.gov. However, there are other websites that offer reasonable coverage as well. If you are in decent-to-great health and still want to maintain some form of health insurance, check out Insurance.com, EHealthInsurance.com, or InsureMe.com.

4. Be proactive with creditors – Don’t wait until you miss a payment to call the creditors. A responsible person will make the call as soon as they are laid off. Most creditors respect customers that call to set up payment plans. This shows that they’re trying to be responsible with their finances, even though they are unemployed.

5. Plan for the worse – It is important to plan ahead while you are still employed. No job is ever guaranteed. So, it is your best bet to save up enough money that could last you 6 to 12 months, if you are suddenly unemployed. Also, utilize your 401K while still at the company. This will create a decent-sized nest egg in case you ever are in dire need for money. But, remember that withdrawing money from your 401K will tax you.

Hopefully, these five can help you make it through the hard times until a new opportunity comes along. There are more tips that can help you effectively survive a job loss. But, these are just a few I wanted to share. If you know of any others, feel free to share your tips in the comment section below.