Being without work brings a significant load of financial anxiety.
When you can’t predict when the next paycheck will arrive, you must cover all your bills with whatever cash you have on hand. Often, that amount falls short.
Here are 10 practical ways to trim expenses and build savings so your funds last longer while you’re unemployed.
1. Create a Bare-Bones Budget
Switch to a bare-bones budget that focuses only on necessities, such as rent or mortgage, utilities and food. Suspend or cancel recurring charges that aren’t essential, like cable subscriptions or gym dues.
2. Ask for Assistance
Don’t rule out the possibility that lenders and service providers can ease your burden during this difficult period. Many credit card issuers offer hardship plans that reduce monthly payments or waive fees. You may be eligible for an income-driven repayment plan on student loans or be able to request a deferment or forbearance. Reach out to creditors and billing departments to learn what help they can provide. Just make sure you understand the terms for catching up later.
3. Make the Most of No Commute
Not commuting can save you money in several ways. Contact your auto insurer to see if your premiums can be lowered now that you’re driving less. You could also rent your vehicle out for extra income. Getaround is one peer-to-peer car rental service that compensates you for lending your car to others.
4. Choose a Cheaper Cell Plan
You need a dependable phone when applying for jobs, but that doesn’t require paying more than $100 a month. Affordable cell plans are available for under $20. Seriously.
5. Be Intentional With Grocery Shopping
Plan your meals and stick to a shopping list to avoid impulse buys. Limit grocery trips to once a week at most. Base meals on sale items and what you already have in your pantry. Opt for store brands and request coupons from the products you use. These additional grocery shopping tips can help you cut food costs even further.
6. Use Cash for Purchases
A cash envelope approach can prevent you from overspending. Take only the cash you can afford to spend when you go out and leave debit and credit cards at home.
7. Save Your Spare Change
Although you need to limit spending, small comforts like a coffee or an inexpensive pizza can lift your spirits during a job search slump. Make it a habit to round up to the nearest dollar on purchases and stash the difference. As the change accumulates, you’ll be able to enjoy a little treat without guilt.
8. Find Free Entertainment
Living on a minimal budget doesn’t have to eliminate all enjoyment. A list of 100 free activities can spark ideas when you need a break from submitting applications all day.
9. Get Free Stuff and Services From Neighbors
When money is tight, anything free is valuable. Buy Nothing groups, Nextdoor and Craigslist are three places where neighbors give away items at no cost. You can also barter by trading something you own (or a service you can provide) for what you need.
10. Look for Unclaimed Money
Your state may be holding funds that belong to you from forgotten security deposits, uncashed paychecks or unclaimed life insurance proceeds. Searching for unclaimed money can be a quick way to add to your account. If that comes up empty, check your wallet for leftover gift card balances and poke under couch cushions for loose change. Every bit helps.
Emma Rivera is a senior writer at Savinly.
