Discussed on Reddit: How to survive a period of unemployment
By Kimberly Palmer, NerdWallet
A financially-stressed Reddit user recently asked for advice: As the primary earner in their family, which includes two children, how could they keep up with a mortgage and other expenses once severance ran out?
Reddit users offered many helpful ideas. Filing for unemployment, looking for other forms of state assistance and finding a new job — even if it’s not perfect — were among the most popular suggestions.
When we asked financial experts how someone can best survive a period of unemployment, they echoed many of those same tips. They also emphasized the importance of budgeting, even before a job loss occurs.
Here are their strategies:
Cut back on all but the essential expenses
“Focus on your essentials, and cut that budget to as bare bones as possible,” says Danielle Byrd Thompson, a financial advisor with TPS Financial in Washington, D.C.
Thompson says using an online budgeting tool or budget app, which can help you stay on top of necessary expenses and uncover where you can freeze spending for the time being.