Losing your job is scary. Terrifying. Whether you knew it was coming or it hit you by surprise, unless you have a large chunk of cash in the bank, you’re likely terrified when you lose your job.
A million fears come rushing to the surface. What if I don’t have enough money to see me through? What if I can’t make my house or car payment? How will I feed the kids?
The first step is not to panic. Times will be tough, but know that you’re not the first one who has lost a job. Many, many people have taken a similar path, and they go on to recover from this speed bump in life.
Next, analyze your current budget. What can you cut? You want to be as ruthless as possible so you can hold on to the money that you do have.
Cable tv? Not anymore. Cut it.
Credit cards? Unfortunately, if you have a balance, you still have to keep paying these, but you can consider 0% balance transfer offers so all of the money you’re paying on the card goes straight to the principal, not the interest. Consider reducing your payment to the minimum amount required, especially if the balance is on a 0% interest card.
House payment? Don’t fall behind on the payment. If you fear that you might fall behind, contact your lender before you do. They may be able to work with you to help you keep up with your payments. The bank would much rather work with you than have you stop making payments all together.
Food? Cut out the luxuries as far as food is concerned. Right now, you’re just looking to keep your family fed. Focus on beans, rice, and in season, low cost vegetables and fruits. You can go back to chips and other snacks the kids like after you get a new job. If you get truly desperate, you may want to consider visiting a local food pantry. Applying for food assistance is difficult, and most families have to be in dire straits to qualify, but if you’re unemployment lasts long enough, you may eventually qualify.
Losing your job can be scary. Stay calm, apply for unemployment benefits if you are able to, and cut corners immediately. By cutting your costs now, you can stretch the money you do have, giving you more time to find a job.
I live in a small Georgia town that you most likely have never heard of and I LOVE it! My house is more than full as I am a single mother of four & caregiver to my aging mother and uncle. Lover of all things Outlander. Goes to the beat of her own drum woman.
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Hubz and I lost both our jobs in the crash. It was absolutely terrifying—and we didn’t even have small kids at home. We found that we could cut our living expenses a lot,however there are some things you HAVE to have. You may get rid of the cable TV, but you must keep the Internet and phone and you have to keep the cars running (unless you are lucky enough to have public transportation.)
I think you raised good points. I’ve never had cable and can see where tons of money is spent on food items not needed. It’s an adjustment but can be done.
I am thankful to have been with the same company for 10 years. The thought of being unemployed is very scary.
Thank goodness we haven’t had to go through the strain of losing a job. But I think you made a great list of things where we can all trim our budgets. Thanks.
My husband’s company he works for cut over 1/3 of their employees about 5 years ago. Then two years ago he was at half time for a few months. It was the scariest situation ever, considering I am too unhealthy to work and we still had 3 kids at home to raise. It is said to always keep in savings a minimum of 2 months salary in case this happens. I have seen people go at least an entire year without work here…it’s a sad state of affairs. We also found that we could fudge with our food budget some, try really hard to keep other costs low like keeping the heat a little lower temp, we had no money for outings at all ( never did much anyway). My husband would simply not cut the cable as TV is one of his biggest passtime pleasures…he just loves to relax and watch someone ELSES life I think. Gifting was cut to barely anything. The kids had to be assured things will be OK but our kids ages (9, 11, and 16 needed to know some of the basics of bills…it helped them understand economics and what a family pays to simply LIVE each month). They appreciated it much more when things got better…a little. And we realized that we dont need to be sucked into expensive car loans anymore. We drive a 15 year old van and 10 year old truck. No payments have allowed to be a bit more comforable than before the crash, and a bit more to pay on a small weekend vacation, or even medical, dentist, and other things we NEED but some put on backburner when times get rough. Plus, even if YOU end up OK…when you have a family and they grow away on their own, often THEY lose their jobs…and might end up back on your doorstep or you may have to step up and help them. It’s just the things you have to do to make it all work. And then hope for the best!
Oh we went thru this not too long ago, and it is so hard! Good tips! Cable…went for us right away too! I actually watch the regular tv channels more so for me it was not a big deal. Cutting food….and making cheaper meals was what we worked hard on. I used coupons and found cheap meals to make each week with what was on sale!