Being unemployed is, without a doubt, a very difficult situation, which can change your life from one moment to the next, it is a time that generates uncertainty about your future and that of your family and concern because you no longer receive a monthly income and the only thing that arrives month by month are the accounts payable.
If the days, weeks, and months go by and the money you had saved, or the liquidation, starts to run out, your finances are already in intensive care and even more so when the opportunity for a new job has not yet arrived.
In Saber Más Ser Más we remind you that everything is temporary, that this complicated situation will not be the exception and we take advantage of this article to give you some recommendations to reduce expenses, get income and manage money (which may become more and more scarce with time). time) while unemployed.
Recommendations to reduce expenses
Make a list of all your current sources of income (if any), as well as what you have available in your checking or savings accounts.
Make a rundown of all that you normally go through cash on every month.
Divide these expenses into essentials and nonessentials.
Plan where you will cut your expenses.
You can, for example, reduce some services that you do not need to live (TV or the gym), look for low-cost entertainment alternatives such as free events, not use the car or public transport as much and use the bicycle, if you live in rent consider options like sharing the apartment.
Set your monthly expenses
Some money-minded people rely on the 50/30/20 rule to keep track of their monthly expenses and savings. Even if you do not have an income or your income is usually lower than usual, you can modify this rule to ensure that you are spending wisely and even saving.
Emergency budget: Registering your expenses is important at all times to maintain control and above all detect what you are spending and what you are spending more on than you should, but in this case, it is essential because more than ever you need to find efficient alternatives and on all at low cost, the faster you do it the better.
It should not be a regular budget, like the one you did when you had a fixed income, where an impulsive purchase was possible, right now you should tighten your belt and think only about the essentials (food and shelter, essential).
Understand nonessential expenses: To manage your finances effectively during unemployment, your first step is to get a realistic picture of your expenses. It will be 30% of your expenses, that of wishes, where you must adjust your budget during unemployment. If necessary, you can also cut some of the money that would go to savings, or make only minimum payments on your credit cards for now.
Avoid loans, avoid debt: Do not increase your obligations, it is not a good idea to live on credit while you are unemployed because we do not know how long you will be without income and, in the meantime, the debt can go up and up until it becomes priceless, and now at that point another headache is added.
If you already had debts, what you can do is try to renegotiate them, seek to redeem or increase the term with your creditors, while using the money you get to heal your basic needs.
Earning income while unemployed
Something better can come: You should look for a new job, it is not advisable to make excuses or postpone it with phrases such as: “the other week I’ll start looking”, since looking for a job is, ironically, a full-time job and requires a lot of discipline.
Remember also that this does not mean sending resumes everywhere, you can do slightly less traditional jobs while you get the opportunity you crave; In these cases, you can buy and sell things, or your things, you can start a business, or you can embark on freelance work, do consultancies, among other options.
Take advantage of your ‘free’ time studying or doing activities that help you polish your professional profile or better develop your trade, this can serve to complement and enhance the relevance of your resume.
Unemployment insurance is an option: As you go through and overcome this crisis, unemployment insurance can help you; The Unemployment Protection Mechanism guarantees that the person who loses his job maintains access to health for a period; savings for your pension, and also receive the payment of the monetary installment of the family allowance, among other benefits.
Remember that this help is for a time, which may be less than the time it takes to find a new job, but it is still a measure that takes a worry off your shoulders.
You can read: How does unemployment insurance work in Colombia?
Your assets can alleviate your ills: If the situation becomes complicated, time passes and passes, needs, debts, and problems increase, an option may be to liquidate some of your assets because at the moment you need the cash to cope with the crisis.
You can consider, for example, the one that costs you the most to maintain, or a small one, but that allows you to solve, at least momentarily, your problems. If you go this route, try to be very wise with your money, remember that you are still on a survival budget.
We know that the anguish will not stop until your situation is normalized, but breathe and try to keep control of what you think, what you do and your money, only then will you overcome this complex moment, and you will have come out with many lessons that They will make you a better professional and a better person, it’s not all about the money.