Financial

Vital Advice for the Unemployed

While the recent economic news was better than we have gotten accustomed to, the fact is there are still millions people who find themselves out of work and many more who are now being classified as “underemployed”. Simply put, we have a long way to go before the pain and suffering of millions of jobless begins to truly subside and the so-called recovery, will truly finally be complete. Here are a number of essential tips that anyone who finds themselves unemployed needs to take into consideration for their sake, and the sake of their families:

  • You earned them so it’s time to collect them. Your unemployment benefits are a vital lifeline to help you maintain during these tough times. If you have exhausted your unemployment benefits already, are you entitled to a benefits extension? Look into it, as an extension would offer an invaluable amount of assistance.
  • Taxes never stop, even when you find yourself unemployed unfortunately. Even unemployment compensation benefits are taxable. It is essential that you make sure that enough taxes are withheld from these payments to make the estimated tax payments you will be responsible for.
  • If you are lucky enough to have a 401k, and you are over the age of fifty five(55), tapping into these funds, while a last resort, is a viable option if you find yourself in a bit of a cash-crunch. Furthermore, you will be able to do so without potentially facing a hefty ten percent penalty on your early withdrawal.
  • Set up a budget/spending plan, and cut your expenses. Now is the best time to understand the difference between want and need. Set a budget and stick to it!
  • Finding a new job is your new full-time job, so treat it as such. That means, waking up early, getting dressed like you are going to work, and getting on the phone or online and reaching out to potential employers.
  • Are your job prospects being damaged by your lack of educational background or skill base? If so, you are literally like millions of other people, so now is the time to take online, night or community college courses to improve your current skills and develop other marketable abilities and knowledge.

Being unemployed, no matter for how long of time, can be completely devastating on mental, physical and emotional level. The simple fact is however, this is the process, and you would be hard-pressed finding anybody who doesn’t have a similar story that they experienced themselves. Unemployment happens to the best of us, so just remember you are going to be okay. Tomorrow is a new day and another day to make it the first day of the rest of your life.


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