It is not easy living from check to check on a fixed income which has an expiration date attached to it. However, that is what unemployment insurance offers, and you are expected to find work within the amount of time it lasts. Sadly, finding another job does not always come soon enough, especially when you are running out of benefits, and have depleted your savings. What can be even more tragic is when a plan has not been put in place to cover such an emergency. This is where you may have to get real about your situation, and where you stand financially. Have you adjusted your lifestyle? Are you and your family prepared for any setbacks? Do you know how you and your family would a worst case scenario? Well if not you should.
No one expects long term unemployment after being laid off, and for this reason many people tend to continue in their current lifestyle. This is one of the biggest mistakes that can be made once you have lost your job. At this point every penny that comes into your household matters, and the first thing you must do is revisit your budget. Revisiting your budget allows you to clearly see where your finances stand, so that you can make necessary adjustments to your spending. When doing this you should ask yourself the following questions:
* Is your savings sufficient to cover any gaps in income?
* What are your priority debts?
* How much are you spending on non- necessities?
Do this to get a close look at your overall spending habits. If there is an opportunity to cut spending and save by all means do so! You will be shocked to know how fast your savings can dwindle if you are not careful.
Another thing you will need to do is talk with you family about lifestyle changes that will need to take place. Their support will ease a lot of stress, and make it easier to transition into a more frugal way of life. If you have kids tell them too. Don't just keep this between you and your spouse. When children are aware of what is going on, and have a better knowledge of your job loss they will not be as disappointed if you have to make cuts in their shopping, extracurricular activities, or allowances. They may even feel led to help out in some way. If so, use this time to instill in them a healthy relationship with money. The important thing is to not draw away from those who love and need you the most. You should include them every step of the way by preparing them for what lies ahead.
Finally, think about your worst case scenario. For most that would be losing or having to give up your home or your car. This may be hard to swallow, but it is a real possibility. Get your "what ifs" together, and decide which road would be best for you to take. It's always better to have a plan than to find yourself hopelessly wandering and wondering.
Remember that you should always remain one step ahead both financially and emotionally when dealing with unemployment. This is the only way to survive it.