The first measure to take after filing for unemployment compensation (if you qualify) is to cut your expenses. This can be a liberating experience – in that you may have to give up and/or reduce many services that you’ve grown accustomed to. However, once you get over the idea of giving up some of these services, you’ll begin to simplify your life and liberate yourself in the process. There are many ways to do this, including:
- Create a monthly budget by listing all of your expenses and determine which ones you can reduce – then reduce them!
- Refrain from using credit cards whenever possible and pay in cash (or cash equivalents, e.g. debit cards)
- Cancel unnecessary bills (e.g. premium phone, television, and/or internet plans)
- Refrain or reduce going out to eat
- Use coupons when grocery shopping
- Join food buying clubs (e.g. Cosco or Sam’s Club) where you can buy food in bulk and save money
- Re-use and/or recycle whatever you can
- Use free services (e.g. local library, associations, government agencies, etc.)
- Be frugal with your utilities (e.g. avoid using air conditioning and/or gas as much as possible, turn off lights when not used, water the grass only (if you have a yard) when necessary, etc.
- Reduce unnecessary driving trips by writing down all of your errands for the week and see what locations you’ll have to go to. Then, do all of your errands in the least amount of trips possible.
- Avoid shopping sprees!
These are just a handful of ways you can cut your expenses. But even some of these steps will allow you to save more money and allow you to get by with what you do have.
Next, we’ll go over how to find other sources of income.