Organizing A New Budget During An Unemployment Period
Losing a job is stressful, but if you want to control your finances, you must create a new budget while unemployed.
By the way, if you successfully maintain your financial health during this period, you will also be able to stay much more positive and mentally stable, which is incredibly important.
So, where to start and what to do if you haven’t managed to build an emergency fund beforehand? Keep reading to discover how Tennessee Title Loans, Inc. can help in this helpful guide.
How Can You Organize A New Budget During An Unemployment Period?
1. Separate Essential And Non-Essential Expenses
If you were good at managing your budget while employed, the chances are high that you followed the 50/30/20 rule. Now that you no longer have a salary, you might find saving 20% of your income impossible, so don’t worry if you have to forget about this rule for a while.
Depending on how severe your situation is, you might spend up to 100% on your ‘needs’ as your primary goal would be to ensure that your essentials are taken care of. But first, you must figure out your ‘survival needs’ and ‘critical wants.’
The essentials typically include housing and utilities, groceries, healthcare, transportation costs, childcare, communication bills, and minimum debt payments.
Your gym membership, media streaming and subscription services, storage unit fees, and dining out fall under the ‘lifestyle choice’ or ‘non-essentials’ category.
Unfortunately, you might have to stop spending money on the non-essentials until you can return.
2. Cut Your Essential Expenses
Though you won’t be able to forget about your ‘needs completely,’ there are plenty of ways to cut essential expenses and ensure you’re spending the bare minimum. Here are a few simple ideas:
- Unplug every unused electrical device
- Seal energy leaks in your house
- Replace incandescent light bulbs with LEDs
- Explore cheaper housing options
- Start meal planning
- Use coupons and such money-saving apps as Ibotta, for example
- Shop for cheaper insurance
3. Freeze Your Payments
Some companies might allow you to freeze payments while experiencing financial hardship. For example, most mortgage lenders would agree to pause or lower your mortgage payments.
In any case, contact your lender or service provider before you stop making payments to find out your options.
4. Explore Assistance Programs
If you lose your job, you should immediately file for unemployment benefits. The payments can vary significantly across the US, but, on average, they typically replace about half of your salary for up to 6 months. The application is worth a try, even if you think you won’t qualify.
You can also consider applying for food stamps (SNAP) and free or discounted healthcare or seeking additional help at local non-profits and charities.
When Should You Pursue A Title Loan?
If you struggle to make ends meet or need to urgently take care of an emergency (like medical bills, for example), then applying for a title loan might be worth it.
Those who own a car outright may qualify for up to $2,500. You do not need a checking account to get approved, and you won’t be asked to provide proof of income, just your ID, lien-free title, and the actual vehicle.
4 Reasons To Choose Tennessee Title Loans, Inc.
When taking out a title loan, you want to ensure that you deal with a reputable service provider offering competitive rates and excellent customer support. Tennessee Title Loans, Inc. is a lender that ticks all the boxes. You might also choose to work with us because:
- You’ll get to keep driving your car while repaying the loan.
- We welcome borrowers with all types of credit.
- You wouldn’t have to visit the store to inspect your vehicle; the agent will come to you.
- When you meet with the loan representative, getting approved might take only 30 minutes.
Get Your Fast Emergency Cash Today!
You would have to develop a new budget while going through an unemployment period. Sometimes, this can mean forgetting about your non-essentials and trying to trim your essential expenses. If, at one point, you start feeling like things are getting way too challenging to handle, then consider applying for a title loan.
With Tennessee Title Loans, Inc., you might qualify for up to $2,500 in only half an hour and receive the much-needed cash in the shortest timeframe. Fill out a short inquiry form to get started today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.