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Joblessness is a soul-crushing process, ripe with disappointment. Hopefully, the rigors of the job hunt do not make a person forget that they will have to live on their joblessness checks in the interim. To make this occur, a sound plan is advisable. Post resource - Stretching the value of your unemployment check by MoneyBlogNewz.

Budget backward

There is improvement being seen in the U.S. job market. Still, most people on unemployment benefits nevertheless need to live frugally. You will not change much by simply cutting out the Starbucks. AOL Jobs explains spending less at the grocery store won’t do it either. There is one piece of advice personal finance expert Jean Chatzky has. She says to work backward with it. Figure out the fixed expenses and work from there.

“I think the easiest way to budget is backward,” she says. “This is where my money is going now and then you can make changes.”

Review more than fixed costs

Changes are necessary for a lot of people. An unemployment check is not typically enough. This goes beyond savings, reminds Chatzky. Do not spend money on things that are not essential or fixed. This will keep your spending budget alive. There is hardly any way to change rent, mortgage or car payments. They are fixed costs. You may want to consider public transportation instead if it is accessible though. That leaves the non-essentials like cable television and Internet. Sometimes it is hard to watch TV with how busy you are. With 600 channels and this schedule, you might want to reconsider. Even though the Internet is sometimes valuable, it can waste your time also. Try going to the public library to use the Internet instead.

“The people that I’ve seen throughout this recession that have the biggest problems are the ones who continued to live as if there were two salaries coming into the family when there was really only one,” says Chatzky.

How to stay on top

Sometimes you have to ask yourself essential questions if unemployed. These are somewhat difficult. You might consider renting out a room and selling your collection. You may even determine to stop paying the private school tuition for kids. Most financial experts say never to take money out of a retirement account such as a 401(k) unless the emergency is severe enough. That nest egg was built for a reason, and the tax penalties can amount to 30 or 40 cents on the dollar for early withdrawal. Now it is getting harder and harder to file for bankruptcy. That is an option though if you are really struggling. There are individuals out there to help you make a good decision. A credit counselor is one of these.

Citations

AOL Jobs

jobs.aol.com/articles/2011/04/04/tips-to-stretch-your-unemployment-check/