Survival 101: Cutting Costs While Unemployed

Do you really need to pay for that right now?

You—quickly and unexpectedly—just lost a job you love. There’s shock, disbelief, sadness, and maybe even anger.

Everyone’s situation differs, but I imagine relatively quickly, fear starts to rear its ugly head as you begin to think about how to continue providing for yourself and/or your family.

An obvious, and immediate, step is to consider applying for benefits and cutting costs.

I am Shanthi Noriega Minichiello, and I want to provide you with a list of steps to take to help you regain some semblance of control so you can better focus on finding that next job.

This is a list of some common steps you can take to reduce spending and keep more cash in the bank. Have other tips or suggestions? Please share!

1) Apply for Unemployment Insurance

States provide employees with monthly benefits to help reduce the stress of lost income. It most certainly will not be sufficient to cover mortgage payments but will help reduce the stress on your wallet.

Learn about your eligibility, the level of benefits you are entitled to, and how to apply.

2) Apply for Medical Insurance

When you are terminated most employers provide access to COBRA coverage so you can maintain medical/dental/vision coverage while you look for work. However, COBRA is expensive, and you may want to consider looking at what coverage your state provides through its insurance marketplace (thank you, President Obama!).

Select your state and learn about how to apply.

By applying, you will also learn if you or your underage children are eligible for Medicaid. In most cases, you need to apply within 30 days of furlough/termination.

3) Apply for SNAP

In many cases, you may be eligible for Supplemental Nutrition Assistance Program (SNAP) benefits to help reduce spending on food and conserve cash for other expenses.

Learn about your state’s SNAP program, check eligibility, and apply.

SNAP can be used in most large retailers, including places like Trader Joe’s and your local farmer’s market. Check for retailers in your area that accept SNAP.

Not eligible for SNAP or want to consider other forms of support? Check out your local food bank (most have a website). They support many food pantries in communities that provide free, fresh vegetables, some form of carbohydrates (rice/bread/pasta) and, in some cases, even protein (most often chicken).

Often, all that is needed is an ID that shows you live in the area. Also note that you can go to more than one food pantry.

4) Ask Lenders About Hardship Programs

Most lenders, including your mortgage company, will have some form of hardship programs listed on their websites. These allow you to skip a payment or even defer payments from anywhere from 2 to 6 months.

You generally only need to share your termination or furlough letter. If your lender does not have a hardship program listed on their website, call them.

5) Check Your Utility Company for Special Programs

Many (most?) utility companies have special programs that help keep the lights on at a lower cost. This information is usually on their website, but if you don’t see anything, call.

6) Review Your Monthly Bank Statement

Often, we have ongoing subscriptions that we may not even be using and others that now don’t seem as important as they once did. Download and print a monthly bank statement to identify those automatic payments and contact the relevant service to cancel those that are not a priority.

Consider: Do the dogs REALLY need a monthly box filled with treats and toys when they are just as happy snuggling with you on the couch for free?

Hey, we are thinking about costs at the Career Pivot, too. Here’s 50% off to help with budget balancing.

A tool I’ve used over time to ID and cancel unneeded subscriptions and better track my spending is Rocket Money.

7) Review TV and Phone Subscriptions

Review that internet and cable TV subscription—do you really need 400 channels or ALL of those premium streaming channels? I’m not saying get rid of everything, but review what you are paying for and ask yourself what you should prioritize.

Look at your phone company—are there competitors out there that use the same network and have a special deal for new clients? Competition between providers is fierce—use it to your advantage.

I recently went into my internet and cable provider’s store to cancel my (ridiculously expensive!) TV service. Not only did my cable and internet bill go from close to $300 to $100/month, but while there they also let me know about a promotion they had.

They use the same network as the cellular provider I was using, and my bill went from over $100/month to $30/month (you may get an added discount if you pay by automatic withdrawals).