Last Updated on August 15, 2020 by Ellen Christian
Wondering about preparing for unemployment? Years ago, when Marty and I were first married, he lost his job when a local manufacturing plant downsized. All of a sudden, the two-income salary we were used to living on was cut in half. Sure, he received unemployment benefits but they are never equal to what you were earning at your job. We didn’t have that much in savings because it always seemed like something would break or need to be replaced just when we got a few dollars saved up. Because the economy wasn’t that great at the time, it took him quite a while to find a new job. We didn’t do a very good job at preparing for unemployment.
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Preparing for Unemployment
Preparing for unemployment doesn’t have to be difficult. There are things that you can do to lessen the impact losing a job will have on your family. You don’t want to have to worry about losing your house or not being able to provide for your kids while you’re trying to focus on finding a new job. Following a few of these tips will make the time that you are unemployed a bit less stressful.
- Never spend all of the money you earn each week. As Americans, we tend to spend everything we earn. When we get a raise or cost of living increase, we tend to increase our expenses to match our new earnings. It makes more sense to spend less than you earn so you can save some.
- Regularly put money away for savings. Even if all you can do is put $5 away in the bank, that is better than nothing.
- Put off major purchases. If you think you may lose your job or your company is less than stable, put off major purchases just in case.
- Stop using your credit cards. Try living on what you make and stop using your credit cards. If you do lose your job, you won’t want to be saddled with extra debt.
- Consider unemployment insurance. You insure everything else in your life (health, home, car). Why not insure your salary as well?
Supplemental unemployment insurance can help make up the gaps where state-funded unemployment fails. That means that if you lose your job, you would have the ability to receive 50% of your previous salary. This can save your home when having to pay for your mortgage and help with expenses for your children while you are looking for a new job. When you sign up for IncomeAssure you receive the supplemental income during your period of unemployment up to 2 weeks before state unemployment is revoked (so if your state provides 24 weeks, IncomeAssure provides their supplemental insurance for 22 weeks.)
IncomeAssure is private unemployment insurance. If you get laid off or lose your job and are eligible for unemployment benefits, their supplementary unemployment insurance provides cash when you need it the most. State unemployment benefits can be as low as $235 a week. I don’t know about you but $235 a week won’t come close to paying my bills if I lose my job. Visit IncomeAssure for a fast free quote and benefit illustration. You can ensure your unemployment benefits for less than the cost of a cup of coffee each day.
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Ellen is a busy mom of a 24-year-old son and 29-year-old daughter. She owns six blogs and is addicted to social media. She believes that it doesn’t have to be difficult to lead a healthy life. She shares simple healthy living tips to show busy women how to lead fulfilling lives. If you’d like to work together, email info@confessionsofanover-workedmom.com to chat.
All great tips! It’s always good to have savings in the bank just in case something happens no matter whether you are employed or not.
That is very true, Jennifer!
All great points. I have been saying our income has tripled and I still never have any money. It is kind of crazy.
It is very easy to spend the extra 🙁
Thanks for sharing Ellen, great tips… it’s always a good idea to save for a rainy day, you never know what happens down the road.
True, Melanie. You just never know.
These are all fantastic tips to remember regardless of whether you have a job or you’re recently on unemployment! I’m self employed due to health issues so bringing in anything is welcomed! It’s so hard to do things like start saving when I can barely pay what bills I do have but like you said even $5 is a start!
It is hard, Kayla, but I try really hard to at least put a few dollars away each week just in case. You really never know!
These are great tips, I am lucky to hold a job. I never take it for granted. 🙂
That’s a great way to see it, Nancy!
Terrific sensible tips. We live paycheck to paycheck so we have nothing put away.
That does make it hard, Val!
Great tips, thankfully this hasn’t happened to us, my husband has come close and it has been scary since we do live on 1 income.
It’s hard when you need one income just to make due.
Being prepared is sooo important!!!
It really is, Kristen!
These are great tips, we had this same thing happen about 8 years ago and we learned a ton.
It definitely is a learning process!
Definitely some great tips. We went through a rough time when my husband’s salary was cut 70%. He has a different job now, but it was rough for a while.
That must have been really difficult, Pam!
great tips, while we all hope to not hav to go through this it is good to have money in savings just in case.
It definitely is, Amanda. You never know what might happen.
Unfortunately, in this economy, you really need to think about having this kind of insurance. It is crazy how many are losing their jobs unexpectedly.
I agree. I am seeing a lot of that in my community as well.
I had no idea there was such a thing as unemployment insurance! What a great insurance after so many people I know have been losing jobs the last 2 years!
I agree, Amber. Being prepared is the way to go just in case!
Wowza, I had no idea that unemployment insurance even existed!! I’m self employed and my husband has a pretty stable job but I think I want to check this out for him anyway!
It really is a good idea, Jenn. Better safe than sorry!
These are great tips. I imagine most people, self included, are not as prepared as we should be. I don’t think there is any such thing as job security anymore.
I agree, Angela. Very few jobs are really stable for the long term.
My husband works in the manufacturing field, so a layaway is always in the back of our minds. Being prepared is definitely the way to go.
I agree,Michele. Manufacturing jobs can have a lot of instability!
Ugh, my hubby’s work keeps getting slow. He’s been on and off jobs all year. This last time was a couple months that he’s been on unemployment. It definitely makes us paranoid to spend ANY extra money!!
Oh that’s not good at all, Jennifer! I hope things pick up!
Always good to be prepared for mishaps or struggles, always save money back for certain things and this is one that would be number 1 on my list.
I agree, Kelsey. You just never know what will happen.
“Never spend all of the money you earn each week.” – This should be everyone’s rule, working or not!
I totally agree, Scott! Great bit of advice.
These are great tips. It is always helpful to save for a rainy day. You never know when you will be without a paycheck!
I agree, Diane. You never know!