7 Tips to survive when you become unemployed

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By: Anna Sweeting
on 19th Oct,2011

Unemployment and job loss is a common problem these days.
7 Tips to survive when you become unemployed

Unemployment and job loss is a common problem these days. There are many experts who are of the opinion that the situation may get worse in the near future. Here are 7 tips which will help you survive the financial crunch due to job loss while you try to get back on your feet:

1. Take help from your previous employers: When you have lost your job, you should make an effort to contact your previous employers. They might offer you a job if they have vacancies. Contacting your previous employers should be your first step to get back on track.

2. Don't vent out your frustration on your boss:
You shouldn't vent out your frustration of job loss on your boss. He/she might be a reference for your next job. He might even hire you for part-time contract work. You should stay professional throughout the process. Your boss (with the help of the company) may give you so that you can get back on your feet. He/she may arrange for workshops to modify your resume or may help you about how to look for new jobs.

3. Take help of government benefits: It can be awkward to head to the unemployment office when you've been laid off or fired. But you shouldn't delay that. You should apply for government benefits immediately once you lose your job as it might take quite some time to get the whole thing processed.

4. Cut back on your expenses:
Once you face a job loss, you should try to eliminate unnecessary expenses. You should take steps to cut or drop your cable, cell phone minutes and movie subscriptions. For the time being you should stop buying branded items. You can even cut back on night outs for dinner.

5. Decide on which bills to pay first: Yes, it is not a wise option to become delinquent on your bills. However, when you're in a financial crunch, you will have to prioritize your bills. Your major priorities should be utility bills, food, your rent or mortgage payments, insurance and medicine.

6. Don't use your 401(k): When unemployed, you may be tempted to use your 401(k) funds.  However, it is never wise to use your retirement accounts. It you do so, you will not only pay a hefty tax and a penalty of 10% but you will also jeopardize your golden years.  

7. Contact your creditors: Though you may feel embarrassed, it is always a good option to contact your creditors and let them know you've lost your job. If you do so, may be your creditor will be ready to discuss some type of minimum payment options with you. This will make it easier for you to pay off your debts. 

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