How To Deal With Unemployment During COVID-19 Pandemic
The global pandemic has driven the world into an economic recession. In current times, millions of people around the globe have been financially impacted by the virus, as a result of mass terminations. Even those who are lucky enough to retain their jobs are constantly anxious about losing the opportunity to generate income int the near future.
If you were let go due to the global pandemic, you may require financial assistance and advice. In this dark period, do not lose hope just yet. Take the following tips into consideration and explore your options.
Keep applying to job postings
Even during the pandemic, there are certain industries that have not yet paused their operations. If you really need an income, you can apply to positions that you are qualified for, even if it doesn’t fall in your field. For instance, if you work in accounting, but have decent writing skills, you can work as a freelance writer online. By this means, you will be able to generate income from your home, which can essentially help you pay the bills until you find another job.
Dip into your emergency funds
In the time that you find a reliable job, you can use your emergency fund to help you pay the bills until the economy is revived. During this time, do not worry about spending your savings. Your emergency fund is built specifically for these situations.
However, if you do not have an emergency fund or a savings account, you can consider other options.
Register for a Government-offered stimulus payment
The government of most countries has contrived stimulus payments to assist individuals who have lost their job, due to the pandemic. You can register yourself online, or via text, to receive monthly payments, which can help you stay on your feet. Additionally, if you are eligible to receive unemployment benefits, you can sign yourself up for redundancy payments as well. Receiving a fixed amount is better than having no income at all, therefore, it is important to talk to your relevant government agency and sign yourself up for the right payment program.
Cut down the unnecessary spendings
In the state of unemployment, it is crucial to avoid spending on things that you do not need. You can take your time to evaluate your monthly expenditure and create a budget that features only the essential items. Essential items include basic food items, utility payments, debt payments, rent and car payments. As the situation of the country is unstable and uncertain, it is impossible to approximate the time when the world resumes its operations. Therefore, you must save as much as you possibly can.
Avoid pulling out from your investments
If you have any investments, you should avoid withdrawing money from them. Taking the invested money out should be your last resort, as pulling out from an investment, in the current state, would suggest that you are bound to suffer a loss. Additionally, as the state of the economy is uncertain, you might not be able to recover from this loss.
What you can do, is extract money from your line of credit. As the current rate of interest is low, you would forfeit a reduced amount of financial loss when you dip into the line of credit, in contrast to extracting money from your long-term investments. However, you must explore both options thoroughly before making a decision. Fighting unemployment, on its own, is already hard enough. However, when you are struggling during an economic recession, you must ponder over each option to make an educated decision that guarantees your financial security.