Financial Planning: Top 3 Ways to Prepare for Seasons of Unemployment

Unemployment is a challenging time in the lives of those enduring it, since it wears on self-esteem and feelings of adequacy, independence, and self-sufficiency.  However, seasons of unemployment are perhaps most challenging on one’s finances, since having no consistent income means bills pile up, debt increases, and oftentimes families are left stressed out and struggling to make it. While there’s no easy way to guarantee that you can weather seasons of unemployment without feeling any strain, there are ways to prepare so these seasons, if and when they come, will be less impactful on your budget.

One.  When financially planning for unemployment, you should make it a goal to have a minimum of 3-6 months savings for routine expenses.  That means you need to take your routine bills (mortgage/rent, utilities, average food and fuel, etc.) and add them up to come to a monthly total. Keeping at least 3 months worth of savings to cover those expenses mean you can stress a little less if your employment hits a lull, knowing that you can make ends meet and give yourself a few weeks of time to find a new job.

Two.  Try to put off major purchases until your work situation is rectified.  If you had saved up for a new television, a new computer, or anything not necessary to existence, and then lose your job, consider throwing those additional savings into your routine expenses account, or at the very least, hang onto them until you are back into the working world and then purchase your new item.  Putting off major buying until you have consistent income is the wiser choice and being responsible.

Three.  Consider getting a credit card for emergencies now, before you have an employment crisis.  If you get a card while your financial situation is good, you are more likely to get lower interest rates, and more benefits with your chosen credit card.  Place the card in a safe place and use it only for emergencies and/or expenses required for daily life (i.e. food, diapers, etc.) in the scenario that you lose your job and have no money coming in.  A card will at least give you a way to provide for yourself and/or your family until you can come up with a plan.

If you are currently unemployed, we know you want to be back into the work force as soon as possible, especially if financial burdens are weighing you down.  PHR Staffing Solutions can help you find a position since we serve the greater Polk County area with employment services for both those hoping to find a job, and employers trying to fill positions within their business.  We have been trusted for years to find only the very best applicants for jobs of all types.  Give us a call or apply for one of our current openings here on our site!