10 Strategies to Survive Unemployment

BY JUDITH EDNA EARLEY

In the past three years, the number of people who have been out of work for more than six months, otherwise known as long-term unemployment — has nearly tripled in this country. This sad fact has significantly contributed to a record number of bankruptcies, foreclosures and delinquent credit card payments.

Being laid off can be a humiliating experience and it’s anyone’s guess as to how long it will take you to find another job. But in the meantime, there are 10 strategies you can implement from day one to minimize the pain.

1. Put your priorities in order. First on that list should be keeping a roof over your head by paying your rent or mortgage. Second to that are utilities, groceries and transportation. No one wants his or her car repossessed, but if keeping up with gas and insurance is too much, there is no shame in taking public transportation. Contact your creditors, explain your situation and ask for a deferment plan. This is available also on student loans and back tax payments. Even your local utilities may have a lower cost program for low-income customers.

2. Track your spending. When you are on a fixed income from unemployment benefits or have no income at all, you really need to know exactly how much money is coming in and how much is going out. The best way to do this is to use cash only. Put away the credit cards and debit cards and use them only in case of emergencies. Other emergency assets are your retirement funds and the equity on your home. Please do not tap into these resources except as an absolute last resort. You don’t want to use secured debt to pay off unsecured debt.

3. Your new job. It’s really not true that you are out of work; your new full-time job is looking for a full-time job. Change your mindset and approach it like any other work. Get up at the same time every morning as you did when you were working. Establish a daily “to do” list: block off time for research, networking and revising your resume.

4. Don't live in your PJs. Along with that business frame of mind goes business-like dress. While it is tempting to spend the day in your pajamas or ragged sweats, you take your behavioral cues from what you are wearing. You don’t have to put on a three-piece suit or pantyhose, but you should shower, comb your hair and put on something that’s clean and pressed.

5. Raise money. Look for other ways to raise some additional money; clean out the attic and hold a garage sale, rent the spare bedroom out to a student, or turn a hobby or skill into a part-time job. Are you an expert seamstress or is carpentry your thing? You might be surprised at what skills you have been giving away that you can now charge money for!

6. Other aid. Do you know about emergency sources of aid in your community? In addition to unemployment benefits, you might qualify for food stamps, subsidized housing or other government aid.

7. Don’t get hooked on your computer. It’s so easy to get caught up in surfing and browsing — if you are not careful you could end up wasting hours of your day. Schedule a certain amount of computer time onto your to-do list!

9. Take care of yourself. Just because you are out of work doesn’t mean you should stop enjoying your life. You have to get out of the house or you may end up drained and depressed. Schedule some down time on your to-do list. Read those books that you have stacked on your bookcase but have never gotten around to. But don’t do it at home every day; read at the park or the coffee shop. You can also go to the zoo, attend a lecture at the museum or take in a movie — matinees are cheaper! You will return to your job search refreshed and you might even meet a key contact while you’re out!

10. Finally, face your fears. What are you really afraid of? Never finding another job, or having to take a significant cut in pay? Are you worried about eviction, ruined credit or being humiliated in front of friends and family? Now think about your worst-case scenario. If you were qualified to work before, you will find another job sooner or later. But what if you really do make less money? What would that mean? It may only mean temporarily adapting your lifestyle to your new income level until you can find something else.

If you properly prioritize your finances, you should be able to keep a roof over your head. But what happens if the bank actually forecloses on your house? While your life will be more difficult for a period of time, you can get back up on your feet. And probably end up a whole lot wiser in the process.

Judith Edna Earley is a freelance writer living in the Los Angeles area. She writes on a variety of topics and most recently authored The Autoimmune Beauty Book.