The best time to save money is before you need to. If you are in job search mode, here are 5 ways to save money right now!
Most of us don’t have 3, 6, or even 9 months of living expenses saved up if we lose our jobs. In fact, in 2018 BankRate says “the typical American household has $8,863 tucked away in savings at a bank or credit union.”
The reality is that most mid level career seekers can spend 6-12 months searching for a new job right now. This is fine if they are employed. But what happens when they aren’t working? How will they survive that long without more than $9,000 in the bank?
Planning & Saving
Let’s look at this problem backwards.
If you will be out of work 12 months, how much money will you need to survive? Now subtract what you are collecting from unemployment.
How long will that last?
There’s a gap right? You need to find a way to fill in that income. Figure this out today!
Ways To Save Money
There are so many ways to save money by cutting expenses. But what you need to do is come up with a plan on how you are going to make some easy money over the next few months.
Sell, Sell Sell
What can you sell? Are there things you no longer need or use?
- Sell them on Craigs List, Facebook on one of the other many online reselling sites.
- Take your items to a consignment shop.
- Have a garage sale.
No, you aren’t going to get rich doing this, however, you will have some extra money.
“Green” is all the rage right now. And going green can mean a lot of different things.
- Buying used.
- Cutting energy consumption in your house and in your car.
- Decreasing your carbon foot print.
Buying used or “new to you clothing” is the easiest way to save money. Stop buying new. There’s plenty of good stuff out there that’s not being used. Not only will this save money, it is saving the planet.
There is a growing demand for “green jobs” too.
How much would you save in one year if you got rid of your car? Gas, car payments, insurance. It could be the best money you saved. This doesn’t seem practical or even feasible in some cases but people do it all the time. Our neighbor, with 4 kids, just dumped one car. They do a lot of carpooling.
But you can even drive smarter by thinking about the trips you do take in your car. Instead of driving back and forth, make one trip and get everthing done. And reduce unnecessary travel. Network over the phone or by video conference (Zoom, Skype, FaceTime, whatever works).
Taking public transportation, where available, is also an option to save money.
Talk To Your Bank
If your mortgage company and credit card companies don’t know you’ve lost your job, they should.
Call them today and see what they can do to lessen your monthly payments for now. Yes, you will have to make those up later, but you need some of that money right now to live on.
Ask For Help
There are food cupboards, low cost health treatment facilities and all sorts of resources available for anyone in need.
Check with your church, local Chamber of Commerce and City Hall to learn what some of these resources are today, before you may actually need them.
Don’t forget to let friends and family know how they can help. You may feel like you are asking a lot of them, but chances are, they want to help.
Try to save money today, rather than when you are in crisis or traumatized by bill collectors.
This is especially challenging for those who have never, ever had to think of any of these things before.
Print this post and give it to someone you know. Help those who are going through a tough time financially that they will get through this. If you’ve overcome a hard time, share your experience and how you survived. Help educate those who need the help.
Hannah Morgan speaks and writes about job search and career strategies. She founded CareerSherpa.net to educate professionals on how to maneuver through today’s job search process. Hannah was nominated as a LinkedIn Top Voice in Job Search and Careers and is a regular contributor to US News & World Report. She has been quoted by media outlets, including Forbes, USA Today, Money Magazine, Huffington Post, as well as many other publications. She is also author of The Infographic Resume and co-author of Social Networking for Business Success.