How to Save Money While Unemployed
How to Cut Costs During the Recession
Many Americans are facing difficult times lately due to the economic recession and rising unemployment rates. More and more people are losing their jobs and being forced to live on much less money than they were used to only a short time ago, and the news is constantly reminding us that the economy is not recovering as quickly as we would prefer. Below are a few tips for saving, and even making, money when it is needed most.
1. Make Money by Selling Used Belongings Online
Many people own several CDs that they no longer find themselves reaching for when they want to listen to music, or they have a stack of books that they have already read or do not intend to read. There are many resources for selling used books, CDs and DVDs, such as used book stores, Amazon.com and eBay. This can be an excellent way to supplement one's monthly income while on unemployment. Garage sales are another useful method to get rid of old belongings that are no longer wanted or needed.
2. Move into a Smaller Place or Take on a Roommate
One of the best ways to save money every month while unemployed is to reduce the rent. No matter if someone lives alone or with a spouse, it is possible to re-evaluate one's living situation. These are difficult times and people may have to accept making some sacrifices. For those who live alone, it probably would not be hard to find a friend or acquaintance that is interested in saving some money on rent every month.
Taking on a roommate is a great way to save literally hundreds of dollars a month in rent, in addition to having someone that can pay half of the utility bills, further reducing monthly living costs. Renting out a room, moving from a house to an apartment, and moving in with roommates are all excellent ways to reduce the rent or mortgage.
3. Eliminate Unnecessary Luxuries
One way to help save money every month is to create a budget, listing how the monthly finances are spent. Are there luxuries that can be eliminated? Many people find they are paying too much money on Starbucks every morning, or spending too much money renting lots of movies or paying for premium movie channels like HBO while unemployed.
When trying to cut costs, people can try drinking coffee at home, or signing up for Netflix, which has plans as low as under $10 a month for renting movies. They can try eating out less, or when they do, avoid extras like appetizers and expensive beverages. While everyone needs a little pampering now and then, it is easy to cut out a few of those unnecessary luxuries.
4. Modify Eating Habits
Many people spend a great deal of money on food every month. One way people can start saving some money is to change their eating habits. Try to avoid buying expensive items like juices or bottled drinks. Purchase grains, cereals or spices in the bulk section at local natural foods stores instead of paying $4 or $5 for a glass jar of spices when only the requisite amount can be purchased for well under a dollar. Make cheaper meals such as soups or salads, or dishes that will provide 2-3 meals that can be saved and reheated, instead of just one meal at a time.
5. Find Inexpensive or Free Activities to Avoid Boredom
Anyone who is unemployed knows that one cannot literally look for work all day every day, nor is it healthy to stay inside developing cabin fever. Finding inexpensive activities to avoid boredom can be very helpful. Going on a hike or a walk in the park are two ways to enjoy the outdoors without spending money. Try spending a few hours reading in the park or in a coffee shop. Try tackling some of those home projects that have been put off for too long. Try researching social networking websites to find other people who are unemployed that might be interested in getting together for some cheap activities.
Unemployment, while giving people a chance to rest and perhaps reevaluate their lives, can be a challenging time due to the smaller budget upon which they are forced to live, not to mention the difficulty of finding ways to occupy one's time without spending money. Employing some of the tips above can help make the unemployment experience a little less stressful.
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