Losing your job or any source of a stable income is a slippery slope, but it is not the end of the world. It happens to people all the time, so don’t panic, and let’s understand how to survive this. What you need to do first is to prioritize your budget and turn on the survival mode until things get better. Today we are going to talk over what we call the four walls. These are the primary stuff we all need: food, shelter, utilities, and transportation.
Food and water are essential to living, so that is your number one priority. Your money needs to go to feeding your family; however, it does mean eating out, it doesn’t mean take out or anything fancy. Try to eat meals that are budget conscious and are making your money go as far as they can. So first things first, make sure that you are using the money you are paying for food the best way you can. You definitely may not love the idea of saving on food, but this is not forever; you just need to survive until you get a new job.
The second category of essential expenses is utility bills. You need to have the basic utilities on, such as gas, water, and electricity. Primarily, make sure to call your utility company and let them know what has happened to you. In most cases, these companies have programs to help people skip or delay payments because of job loss. Call your local utility company and clarify whether or not they have some sort of relief.
Losing your home during a time of job loss makes so much worse. Use all possible means to make the rent or mortgage payments. You can call your landlord or your mortgage company and see if there are any options of delaying your monthly payment.
Transportation is one of the major functions, whether using a private car or public transport. You need to make sure you keep those payments up so you can continue to get out of the house and go where you need to go. Definitely, it doesn’t mean that your $500 car payment needs to stay in your budget.
WHAT TO DO WITH DEBT REPAYMENTS?
If you have been paying back your debt, stop the payments. Debt repayment is not the primary thing that you need to think about when you are unemployed. Whether you have a long-term loan or a small loan due on your next paycheck, contact your lender and let him know about your current financial difficulties. Possibly you might get a grace period and skip your monthly payments until you find a new job. However, try not to get stuck in a debt trap by rolling over your debts as you may dig yourself in a bigger debt hole.