Written by Jessica | July 15, 2019
Whether you secure a higher position or lower position, there is no such thing as job security. There is always a risk of being laid off or terminated. Even though you brace yourself for unexpected layoff, you are unlikely to have enough savings to meet your recurring expenses. The rule pf thumb says that you should have at least three-month worth cost of living in your emergency cushion, but it is harder than you think.
Perhaps, you may ignore the importance of building emergency cushion because payday loans for unemployed can support you, but these loans can help you tide over when you have a side gig to show to your lender. Repayment of these loans can be very difficult despite flexible repayments as you do not have a source for a constant flow of cash. Therefore, it is crucial that you track your spending.
During unemployment, most of the people face cash shortfalls despite side hustles. The significant reason is they continue to spend money the same way as they used to before getting jobless. You must understand that you will have to change your spending as the flow of cash changes. Of course, with side gigs, you will earn the same money as your full-time job. Therefore, you cannot continue to spend the same way.
Income from side hustles and savings collectively will help you meet your recurring expenses, and if you want to meet all of your obligations, make sure that you cut back on discretionary expenses. To survive easily while being out of work, you will need to make a strategy to save money every day. Here are some useful tips to increase your savings.
Whatever money you earn from your side hustle, make sure that you put aside at least 10% of it. If you collapse using the whole of the money, you should link your savings account with deposit and activate auto-debit mode so that every month as you receive your funds, it pulls the set limit. Even if you do not have a full-time job, you should stop the ritual of setting aside money. Try to make your savings account harder to reach. Transfer it to an account without the card so that you will have to go to the branch to operate it. The harder the access to the account, the less likely you will burn through it.
During unemployment, you should know about every little expense you make so that you can track your spending at the end of the month. Make all purchases with cash. It will benefit you two ways: first off, you will have a full record of expenses and secondly, you can avoid paying interest on purchases made through a credit card. If due to any reason you use your credit card, make sure that you pay off the debt as soon as possible and add that amount to your expenses. This will help you know the actual expenditure at the end of the month.
If you have taken out unemployed loans, you have to ensure that you have enough money to pay back your debt. The repayment term of these loans is very small, so it becomes difficult to settle all dues. To repay your debt on time, you should cut down on your expenses to have more money. Note down all your monthly expenses so that you know how much money you are disbursing. If you review them, you will find that most of the expenses are not essential such as dine outs, night outs, subscriptions, gym membership, club membership, entertainment, etc.
Prepare your meal and entertain yourself at home. Most of the time you quickly grab a cup of coffee and donut because you do not have time to prepare a meal. You may think that £5 is not a very big amount, but it adds up to at least £100 at the end of the month, which is not small money especially when you are out of work. However, eating out and visiting the cinema once a month will not affect your budget badly. Try to buy commodities in bulk as you can have a discount, but make sure that you will have consumed all of them before they go rotten.
Whenever you go shopping, you buy more than needed items as you fail to control your temptation. You should make a rule that you are not going to spend anything other than what you need and set a limit when you have to stop spending. Try to put off buying things as long as you can. Give priority to mandatory goods only.
Unemployment is a temporary phase, but it can be extremely stressful if you do not manage your finances. You can save money by cutting down on optional expenses and increasing your income sources.
Articles Hubspot is a platform for passionate writers who love to play with words and want to express their thoughts, emotions, and experiences through stories. Our main motto is to encourage and inspire authors from across the world.
Subscribe my Newsletter for new blog posts. Stay updated from your inbox!