How you can get probably the most from that unemployment check

Unemployment requires a fantastic deal of pavement pounding, which has been scientifically proven to crush the soul into tiny pieces. The sometimes fruitless nature of a job search must not blind consumers to the truth that they’ll have to make that joblessness check stretch. To do this, you need a plan. Article source – Stretching the value of your unemployment check by MoneyBlogNewz.

Find fixed costs first

There are many people that nevertheless need to live frugally on unemployment benefits even though the U.S. job market is improving. Simply cutting out the Starbucks and purchasing less at the grocery store will not do it, advises AOL Jobs. To begin with, personal finance expert Jean Chatzky suggests working backward. You need to figure out what your fixed essential expenditures are. From there, you can go forward.

“I think the easiest way to budget is backward,” she says. “This is where my money is going now and then you can make changes.”

More than just fixed costs to review

Austerity measures must be put to action when you have only a joblessness check to rely upon. Chatzky states that more than just saving is essential. Anything that is not a fixed or essential cost in the budget needs to stop. Rent, mortgage and automobile payments are inescapable, and they also do not change from month to month. Do you have public transportation? Consider the saved costs by using it.

Many items are not essential. This includes things such as the Internet and cable TV. Sometimes it is hard to view television with how busy you are. With 600 channels and this schedule, you may want to reconsider. Similarly, the Internet can be a time-waster, although it can also be an invaluable job search tool. Try going to the public library to use the Internet instead.

“The people that I’ve seen throughout this recession that have the biggest problems are the ones who continued to live as if there were two salaries coming into the family when there was really only one,” says Chatzky.

New ideas to consider

The unemployed may have to consider some difficult questions to be able to remain above water financially. Will you rent out that room above the garage, pull the kids out of private school or sell your prized guitar collection?

Most financial experts say never to take money out of a retirement account such as a 401(k) unless the emergency is severe enough. That nest egg was built for a reason, and the tax penalties can amount to 30 or 40 cents on the dollar for early withdrawal. You may end up considering filing for bankruptcy in the worst possible situation, even though that is getting harder to do now. There are individuals out there to help you make a good decision. A credit counselor is one of these.

Citations

AOL Jobs

jobs.aol.com/articles/2011/04/04/tips-to-stretch-your-unemployment-check/

North Carolina Gov. Bev Perdue on unemployment benefits

youtube.com/watch?v=BwkD8Kyb96A