-
Step 1
Apply for unemployment and community programs. As soon as you're laid off, go to the unemployment office and file for unemployment. While you're there, ask if there are any community programs to help you while you're unemployed. Many cities offer programs where you can get food at a reduced cost. The programs available will vary by city, but most do have them.
-
Step 2
Review your current budget. It's important to sit down and face your expenses head on. This is where many people fail to handle unemployment. By looking at your expenses, you can get an idea of how far your unemployment check will go. Chances are your check won't cover all of your expenses. That's why it's important to highlight necessary expenses.
-
Step 3
Cut unnecessary expenses. If you're going to handle unemployment, you must realize that some expenses are unnecessary. For example, you don't need movie rentals or fast food. Take the time to cancel subscriptions for unneeded services and to look for ways to save money on needed expenses.
-
Step 4
Discuss the situation with your family. Many people simply inform their family that they've been laid off. This isn't enough. You need to sit down and discuss what this means. It will require talking about the money coming in and going out of the house. It will also require discussion about cutting back. Being honest with your family can prevent some of the tension that comes from unemployment.
-
Step 5
Stretch your unemployment checks as far as possible. You may be tempted to dip into your savings or 401k. This should only be done as a last resort. Instead, follow the previous steps so that you tailor your budget to your income. There will be times when an expense comes along that you can't cover, such as a heating bill or car insurance. This is the time to dip into your savings.
