Experiencing job loss is something no one ever anticipates and even if you’ve been prudent by saving for emergencies, it can be rather distressing to see those savings dwindling over months of unemployment. What happens if you exhaust your funds before securing a job?
Certainly, aside from your emergency savings, you likely qualify for unemployment benefits, which could extend your financial longevity. However, with almost 40% of jobless individuals remaining unemployed for more than 27 weeks (as per Bureau of Labor Statistics), you might need to consider more aggressive strategies to meet basic needs like utility bills, groceries, and mortgage payments.
Thankfully, numerous alternative solutions are available:
1. UTILIZE YOUR FACEBOOK NETWORK: Today, raising funds through social media platforms like Facebook is common for individuals facing financial difficulties. By sharing your story, pictures, and reasons for needing support, you could encourage donations from others.
2. TURN TO CROWDSOURCING PLATFORMS: Sites like Go Fund Me have helped many in difficult situations. For instance, Bill Mann who was at the verge of foreclosure was able to raise over $8,000 from 119 donors within a few weeks thereby averting his home’s foreclosure.
3. SEEK HELP FROM YOUR CHURCH: Many parishes have funds earmarked for assisting members in dire straits. Your local church could provide you with some meals as well as cash to help tide over rough patches.
4. VISIT NEARBY FOOD PANTRIES: Your city likely has food pantries where you can acquire provisions to last a few weeks. Making use of these before your emergency fund is completely depleted can help stretch your savings.
5. APPLY FOR SNAP: The Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program, can provide you with funds to purchase groceries. If you’ve been out of work for several months, you’re likely to meet the stringent qualifying criteria.
6. CONSIDER BORROWING FROM RELATIVES: Borrowing from family members can be a fallback option when faced with severe financial stress. Drawing up a repayment agreement can ensure clarity on the repayment terms.
The dread of being unemployed with no regular income is indeed formidable, especially when it spans several months or even a year. Battling despondency during this period can be challenging, but adopting some or all of these strategies can help bolster your state of mind and financial stability even amid extended periods of joblessness.
