It’s a no-brainer; without employment, living can be exceptionally complicated. While various cities offer options to help those in a pinch, living simply isn’t the same when you don’t have regular paychecks coming in. Fortunately, by understanding how unemployment will affect your living situation, you can properly prepare and prevail during this difficult time and get yourself back on your feet. Here are the most important things you need to consider.
You May Have to Sell Some Of Your Belongings
Selling your belongings can be a difficult task, but when money is tight, it could be the ultimate solution for the time being. Luxury items that are not deemed as necessities may allow you to remain more comfortable during the time of your employment. Items such as electronics, furniture, outdoor equipment, automobiles and other miscellaneous items may have to be sold just to keep yourself on your feet.
You May Have to Move
In the worst-case scenario, you may have to move. Whether you currently rent an apartment or own a home, packing up your belongings and downsizing may be the best option for you at this time. You can also sell the furniture you will no longer need in your smaller home to generate some extra income, or you can store them in a storage unit for a minimal fee. The latter may be the better and more affordable option if you don’t plan on being unemployed for that long.
Your Taxes to Change
Being unemployed will affect your taxes. This could be both good and bad, depending on the specifics of your situation. If you are unemployed, you will have to report your unemployment benefits on your tax return as income. You may also be eligible for tax credits, depending on how low your income is. If you incur any job-seeking expenses, they can be deducted from your taxes as expenses. These are only a few examples of how unemployment can change your taxes, and it’s recommended to speak with a financial advisor for accurate advice based on your specific situation.
You’ll Have to Learn to Live Frugally
With a decrease in income, there should also be a decrease in expenses. In order to live more frugally, you’ll have to learn how to budget. Calculate how much money you currently have, as well as the addition of any unemployment benefits you have qualified for, and delegate amounts to ensure you live within your means.
You can prepare in advance for this potential situation by setting up a savings account or putting an emergency fund in place in the event you become unemployed.
You’ll Need to Accept Help
During such a complicated time in your life, it can be difficult to reach out for help. However, opening yourself up to some hospitality can be the key to getting back on your feet. Many cities offer various programs and resources, from career centers to housing opportunities that will be extremely beneficial during a time of unemployment. You just have to be willing to ask and accept the help being offered.
Unemployment doesn’t have to affect your living situation long-term. With the right mindset, you can store your belongings in a storage unit, move into affordable housing, join unemployment programs and get working again. It’s a struggle that many people find themselves in, but it’s not impossible for you to overcome it. Stay positive and look forward to a brighter future, and the best way to do just that is to prepare and know what to expect when unemployed.