Money is one of the most prominent thoughts on everyone’s mind. If you’ve been out of work for a while, your goal may be to make more money and save your funds. To be successful, consider these four tips. Keep reading to learn how to budget when you’re out of work.
1. Establish a Purpose for Budgeting
Know why you want to save money to stay motivated and assertive on days when your finances are low. A purpose keeps you aligned with your savings goals, meaning you’re less likely to get distracted with wasteful purchases and more likely to focus on increasing the funds in your savings accounts. Ask yourself why you want to stick to a budget more than anything.
Maybe you need to save so you have enough money for emergencies that may arise and catch you off guard now that you’re out of work. Another possibility is that you long for more financial freedom, a sense of total independence that reduces your financial-related anxieties. Either way, purpose pushes you forward toward making the best financial decisions.
2. Follow the 50/30/20 Rule
Coined by Senator Elizabeth Warren, the technique covers the basics of budgeting: use most of your money towards your needs but less on your wants, and then you’ll have enough to put towards savings. Spend 50% of your income on your needs and 30% on your wants, but dedicate 20% of your income to your savings or debt.
If you need money for professional hairstyling, couldn’t the work wait until you satisfy your rent costs and household needs? Ask yourself how long an expense can wait. If the answer is for some time, the expense belongs in the “wants” column. Generally, an FUE procedure takes eight hours to complete. That time could be used to budget your checkbook and realize the expense can wait. Don’t
3. Choose a Source of Side Income
Whether you’re taking online surveys or completing mystery shopping activities, side hustles keep you motivated, hungry, and on track with your budgeting goals. A secondary source of income can add hundreds of dollars to your income. Ultimately, you’ll save money because you’ll have more money. Who wouldn’t want that?
Be creative and find ways to monetize your passion. A side hustle can develop into a full-time job with patience and dedication. Conversely, a side hustle designed to keep you afloat until you’re employed can keep you from feeling rejected and discouraged by not having a job. Walk dogs if you like animals, or create online courses if you’re a teacher. You never know how far a side hustle can carry you.
4. Apply for Government Assistance
Federally funded government assistance programs put money in your pocket to supplement your income. You’re eligible if you have a low income or suffer a disability, have children, or sometimes even live in a specific state. Government assistance is essential when you’re away from work because you were injured. Look into programs like Supplementary Security Income (SSI) and Food Stamps for help.
22% of slip or fall injuries led to more than 31 days of leave from work. This can be a huge stressor as you figure out how to pay your bills. Whether you suffer from a fall or get diagnosed with an illness, the time away from work will make affording food and utilities much harder. Unfortunately, Legionnaires disease accounts for between 8,000 and 18,000 hospitalizations a year in the U.S. If you’re in the hospital, every bit of assistance can help you when you’re out of work and don’t have that much money. Take your chances and apply for the help that’s there.
Budgeting takes patience to get right. Sometimes, you’ll spend too much, and other times, you’ll save too little. Remember, side hustles add more to your wallet. Apply for government assistance when you’re down on your luck. The budgeting work you do today will help you become more financially secure in the future.
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