Things have been extra crazy lately because of this pandemic. A lot of businesses are losing money, and as a result, a lot of people lost their jobs. Before COVID, it was a lot easier to find another job shortly after losing yours, but unfortunately, that’s not the case anymore. And,  we need to be extra careful of our finances during such an unstable economic condition.

So, if you lost your job recently, don’t worry, you’re not alone. According to research, over 9 million people lost their jobs during the COVID-19 pandemic. But that shouldn’t stop you from looking for a new job. If you need to take a paycut to maintain stability, you can at least be thankful to have some income. You should also pay attention to how you’ll be spending your money while you don’t have steady income.

In this article, we’ll take a look at what other choices you can go for, for cash to keep you on your feet during this challenging time. Besides finding other sources for income, we’ll discuss how you can save your money and spend more wisely.

Alright, You Lost Your Job, Doesn’t Mean You Can’t Get Another One

Obviously, losing your main source of income is horrible. Especially, if you loved that job. Your job doesn’t only provide you with income, but also takes up a big portion of your day. So, if you’re feeling discouraged about going out there and looking for a job, it’s completely understandable. But the thing is, it’s not the last one left on the planet. You could always talk to any customers or suppliers you dealt with during your job. Since those guys are connected to your industry, maybe they can help out.

If you don’t manage to find a job within the same field, it’s still not the end of your career. There are other jobs out there that require low qualifications. You can pick up a new job, at least until you can get back to your career field. If you manage to land a job outside your field with a stable income, you could use the time to learn more valuable skills and land better jobs. Who knows? You might actually end up liking working in a different field and find your success in it.

Also, don’t be shy about asking your friends, family and neighbors to hook you up with a job, even if it’s just for a little while. The more jobs you do, the more skills you learn and the more you know about what you want and don’t want out of a job.

What If I Can’t Find Any Jobs? Where Can I Get Money?

You’ll clearly always need to look for a job to make up for the one you lost. After all, a stable income is the only logical way a person survives financially. However, if so far your job search isn’t working out, don’t worry, the federal government has your back.

Let’s Talk About Unemployment Insurance

So, what exactly is unemployment insurance? It’s basically a program that was created by the Department Of Labor to help out people who lost their jobs for reasons that aren’t based on the employee’s performance at the job. There are a few things that you should know about unemployment insurance before applying for it. First, unemployment insurance is not supposed to replace having a job. It’s there to help you stay on your feet while you’re looking for a job. Second, unemployment insurance was created in cooperation between the federal and state governments. The reason that matters is because your eligibility for the program might vary from one state to the other. Finally, you need to learn about how you can qualify for unemployment insurance, so let’s take a look at that:

• As we’ve already mentioned, to apply for unemployment insurance, you must have lost your job for reasons that are not your fault.
• To qualify for unemployment benefits, you’ll need to meet certain standards. These standards will mainly be based on the amount of time you’ve already worked and/or the wages you’ve earned. As we said earlier, different states have different rules. However, the general rule of thumb is that you need to work 12-15 months before applying for unemployment insurance.
• For more information check out this website.

How Do I Get My Unemployment Insurance Money?

This process will be far from complex. You apply for it. You provide some documents and you wait. That’s it. But for more details, here’s what should know:

1. You should contact your state’s unemployment insurance program right away if you get laid off.
2. You need to apply for unemployment insurance in the state where you worked. If you live in a different state from the one you worked in, or perhaps you worked in different states, contact your local insurance program. Those guys will know which way to point you towards.
3. Since you’ll be applying for unemployment insurance, it’s only natural that they’d ask you about your employment history. Questions will involve dates and places of your previous occupations. Make sure to only provide truthful answers, they’ll check.
4. If your application goes smoothly, you should receive your first benefit check somewhere between two to three weeks after your application goes through.

Just Because You Got Your First Unemployment Check Doesn’t Mean You Stop Applying For Them

So, assuming your application went through smoothly. Two to Three weeks later you get your first check. Now it’s important to remember you need to apply for unemployment every week!

You might wonder “what’s the point of applying for the same thing every week?” We’re glad you asked. The idea is that the government needs to make sure you’re actually looking for jobs, not just giving up and relying on unemployment money. You’ll need to keep a job search log. That log must contain at least 3 different instances in which you tried to find a new job.

This whole thing is pretty beneficial to you. Truth of the matter is that if you don’t provide that work log, you’re risking losing your unemployment benefits. But, on the less strict side, it’s a great motivation for you to keep looking for jobs. You’re bound to find something eventually.

You Could Possibly Get Your Unemployment Money For Longer

Good news! Unemployment benefits can actually be extended. As you’ve probably read above, every state has different unemployment laws. So, extension periods for unemployment benefits may vary from one state to the other. Your state might provide a 13 week extension, or it might provide a 26 week extension. The best way to find out is to apply. But, just like with every other government program, there are some conditions you need to satisfy to qualify for the extension:

• This should not come as a surprise, but you’ll need to finish your regular unemployment checks first
• Also shouldn’t come as a shock, you still need to be out of a job
• You’ll still need to prove you’re looking for a job
• This is the only tricky one: You need to live in a state where the unemployment is generally high

Before You Get Too Excited And Start Spending, Read This

It’s obviously great if you manage to get your unemployment checks. That means you don’t have a stable job, but you also don’t have to be completely broke. But the trick is, don’t get too comfortable. As we mentioned, these unemployment checks are made to help you survive, not live in luxury. Starting the moment you lose your job, you should be taking calculated steps with every dime you spend. You need to realize that money will come in slower, smaller packages. So the limited budget you’ll have should go towards necessities and responsibilities only.

You’ll Be Taxed On Your Unemployment checks

It sounds ridiculous, but it’s true. Since you’ll be getting money, the government has to take a bite of that cake. It’s really important to remember this, because a lot of people think “well I’m unemployed, but at least I don’t need to pay taxes.”

So, let us walk you through it. You’ll be filing your taxes just as you normally would. Only difference is that instead of inputting your income from your job, you’ll add in your unemployment insurance amount instead. There’s also a form called the IRS Form W-4V. This form gives permission to the government to keep 10% of your unemployment insurance amount for tax purposes. That way you don’t have to think about your taxes while you’re unemployed. But, many professionals advise against it, and only recommend using the IRS Form W-4V if you’re 100% sure you can live off the rest of the money.

Put Aside Some Rainy Day Funds

“First you tell me I’ll pay taxes, and now you’re telling me to save money. How much do you think I’m getting?” Honestly, a valid question. But here’s the thing, you should try your best in whatever situation not to spend all of your money. Whether you’re employed or not, you should try to keep some change unspent. Obviously, unemployment checks won’t be as generous as one would hope they would be. But, if you’re spending every cent you get every month, you probably will:

• Finish all your money a day or 2 early every few months
• Run into a situation where some saved money could’ve helped you out

And, that’s the thing. You really need to think ahead. We need to be smarter with our spending when we have tight budgets, not when we’re rich. So, save some money. Who knows? You might need it for medical bills or any other emergency expenses.

Manage Your Debts

Let’s be real here. How many people do you know who don’t have any debts at all? It’s estimated that an average American household is about $155,622 in debt. The main causes of debt are auto loans, mortgages and student loans. And you need to remember that debts don’t just disappear just because you lost your job. However, banks are smart. Banks are willing to be very flexible to make sure they get their money back.

Here’s an important tip if you lose your job and you have debts: Call up your bank and start a conversation about paying back your debt through a new arrangement. Banks are willing to give more time, or ask for smaller installments, as long you can pay it off. It’s better for them than not getting any money back at all, isn’t it?

Pieces Of Advice That Are Obvious But We’re Here To Remind You

On unemployment checks, your budget will be tight. That means you need to spend your money on stuff that you’ll need. First thing that should go are intoxicants, like alcohol. Alcohol will not only drain your wallet, but also your mental health. Alcohol is a depressant, and that’s the last thing you need after losing your job. Same goes for any other intoxicants.

Second, let go of luxury. You don’t need to shop your groceries from anywhere fancy. You’ll have to live with generic budget brands, and that’s okay. You also don’t need to buy clothes, unless necessary. Same goes for electronics. If you’re thinking of getting a new iPhone while you’re unemployment checks, you should reconsider your priorities.

Conclusion

Losing our jobs, especially if it’s not our fault, is just horrible. Adding to that the difficulty of finding a new job, things can get pretty stressful. But in that situation, more than any other, you need to keep your head straight and make calculated decisions. You’ll first need to apply for unemployment insurance, and make sure you provide all information necessary. You need to also remember to apply for it every week, and keep a job search log. If you finish all of your unemployment checks before finding a job, you can extend your unemployment benefits. Finally, spend your money wisely if your budget is tighter than usual.