- Personal Finance
How To Survive Unemployment Without Going Bankrupt
Unemployment Means Financial Uncertainty
For those who are not employed at the moment, you know what it is like to not know when that next paycheck might come in. It is a time of financial uncertainty and turmoil. Unemployment benefits only last so long before they expire and leave you with no source of income. Not having a job can mean financial ruin, but there are ways that you can stay on top of your money and make sure you come out of unemployment with as little damage as possible. Knowing how to survive unemployment without going bankrupt is important.
Find Temporary Sources Of Income
Unemployment benefits aren't the only way you can make money if you have no job at the moment. While these benefits are the main source of income for most of the unemployed in America, there are other ways to make money. Some suggestions include:
-Start Your Own Business
-Do Odd Jobs For Neighbors And Friends
-Rent Out A Room In Your House
All of these methods can provide you with a steady income for the time being until you get a new job. Make sure to check with state laws to ensure that you are not putting an unemployment insurance checks in jeopardy should you need them. Taking even a few of these jobs will help you to survive unemployment without going bankrupt.
Don't Raid Any Retirement Savings
Yes, things look bleak for you, but you should not put your retirement at risk. Keep that money locked up in the savings accounts and 401k accounts that you have open at the moment. There are several reasons why you do not want to rely on your 401k. Some of the best reasons to avoid this are:
-You Pay A Penalty For Withdrawing Early From A 401k
-Income Taxes Come Into Play
-Losing Savings For Retirement Means You Have To Work Longer
-There Are Many Other Options
If you can, get a home equity loan, or some other form of financial assistance. The worst thing you can do is to mortgage your future just to get by today.
Settle Any Large Debts Upfront
If you have any large monthly debt payments ahead of you, it would be wise to look into ways of paying those off quickly. Whether you have to sell your car, or settle your credit debt ahead of time, you should look into what you have to do to minimize debts and maximize whatever savings you have. Doing so can keep your credit score intact and allow you to take out new loans to get back on your feet when you do find a job again.
Unemployment Isn't Always The End Of The World
Unemployment can be a gateway to a new job, new career or just a break that you needed. Not having a job can be hard on your finances, but some planning can help you cushion the blow a little bit. Take this time to explore your options and see if there are any ways to make your life better for yourself and your family. Learning some new skills will help if you ever lose your job in the future. What you learn now can help you learn how to survive unemployment without going bankrupt.