How to Pay the Bills When You’re Unemployed

By George Miller

Almost everyone faces a period of unemployment at one point or another. As common as it is, being in between jobs is not a comfortable position. Financial stress can take its toll, especially in this economy. How can you make ends meet and pay the bills when you have no source of income? Here are some financial tips to help you weather this career transition and maintain your financial well-being. First, remember you have marketable skills.

Launch a Side Business

Running your own business is a great way to take control of your spending power and earn some extra cash while you’re in a career slump. Your side gig might even become your next full-time job! Leverage your analytics skills as a freelancer. Use sites like Upwork or Fiverr to list your skills and have companies compensate you for your knowledge. There are other businesses that you can launch relatively quickly and with very little upfront investment.

If you decide to launch a business, consider forming an LLC to shield yourself from personal liability and avoid putting your finances at risk.

Find Part-Time Work

Finding part-time work is another viable option. Any amount of income will help your situation. While it’s natural to want to prioritize your own needs, consider prospective employers’ concerns as well. With turnover so high in the part-time sector, employers want to know you’re committed and that you genuinely want the job. Monster.com suggests looking for part-time opportunities in retail, hospitality, education, healthcare, and the delivery industry. Employers in these industries are often looking for candidates who are specifically interested in part-time work rather than those settling for part-time positions because they can’t find full-time work. Make sure you use your storytelling skills to express your interest in part-time work when applying for these positions!

Increase Your Hireability with Training

When it comes to job hunting, it’s important to be proactive and use all the tools available to you. Training and networking are two powerful ways to get your foot in the door and land a new job. By taking courses or attending workshops in your field, you can gain the skills and knowledge necessary to impress potential employers.

And by networking with others in your industry, you can make valuable connections and tap into hidden job markets. So next time you’re looking for work, don’t underestimate the power of training and networking to help you land your dream job.

Leverage your membership with DAA and take advantage of short-course certificates, resume reviews, mentoring/career coaching, and networking opportunities that can make the difference in your career moving forward.

Stick to a Monthly Budget

Besides finding ways to drum up new income, look for opportunities to reduce your spending. Sticking to a budget is key! Create a monthly budget that prioritizes necessities like bills, housing, and groceries. Once you know how much you have to spend every month to make ends meet, you can make decisions regarding your discretionary spending. It may be worthwhile to cut out all unnecessary expenses for the time being.

Reduce Unnecessary Expenses

Not sure which expenses to slash from your budget? GOBankingRates.com offers several great suggestions. For example, you could stop spending money on gifts, dining out, ordering in, cable TV, gym memberships, magazine subscriptions, app subscriptions, new clothes, alcohol, and tech upgrades. Cutting these expenses from your budget shouldn’t affect your quality of life too significantly. In fact, reducing your spending in some of these categories can improve your mental and physical health!

Get a Short-Term Loan

If money is really tight right now, you might need to get a loan. Obtaining a short-term loan is preferable to relying on credit cards with sky-high interest rates. Of course, it can be hard to secure a loan when you don’t have reliable employment. Strong credit history and an excellent debt-to-credit ratio will help you out here, so start by checking your credit. A high score (740+ is considered excellent) will show potential lenders that you are reliable and likely to pay back your loan, so they will be more likely to approve your request. Family loans can provide a cheaper leg up — but they also risk the relationship. Carefully weigh the pros and cons.

Creativity and Persistence for the Win

Making ends meet can be challenging when you’re in between jobs. Create an effective action plan to make it work! This might mean starting your own business, landing a part-time job, getting a roommate, or obtaining a loan. Whatever you do, a little budgeting will go a long way toward easing that financial strain. You got this!

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Resources:

Very little upfront investment – https://blog.hubspot.com/sales/small-business-ideas

Looking for part-time opportunities – https://www.monster.com/career-advice/article/part-time-job-search

Create a monthly budget – https://consumer.gov/managing-your-money/making-budget

Cut expenses – https://www.gobankingrates.com/saving-money/budgeting/hidden-expenses-cut-budget/

Improve your mental and physical health – https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8806009/

Secure a loan – https://www.cnbc.com/select/what-to-do-applying-for-loan-after-losing-job/

Checking your credit – https://www.redfin.com/definition/credit-score