How to Stay Afloat Financially When You've Lost Your Job
If you are out of work at the moment, you aren't alone. As of October 2020, the U.S. employment rate was 6.9%, nearly double what it had been in February of the same year. A lack of steady income creates financial hurdles and can leave you stressing about cash.
Luckily, there are more diverse and accessible ways to earn money than ever before. This guide provides tips and tools for making ends meet when you don't have a full-time job — from going into gig work to financial planning with Beacon Wealth.
Find ways to make money online.
The internet offers opportunities to get paid without having to leave your house. Many online jobs can be done with minimal experience and no educational credentials. For example, all you need is basic reading, writing, math, and tech skills to work as a virtual assistant. If you're a fast typer, you can try working as a transcriptionist. Other options include conducting surveys, tutoring, customer service, and data entry.
Look into gig work.
According to the U.S. Bureau of Labor Statistics, a "gig" job is a short-term position that you can do on a self-employed basis. The BLS reveals that gig work is on the rise, meaning you have plenty of opportunities at your fingertips. Gig work is diverse and can include everything from construction to education and health services. Transportation is also a major gig work sector, with jobs available via operators like Uber and Lyft.
Find seasonal or holiday jobs.
If you're looking for something short-term to tide you over until you find a more permanent position, seasonal work is ideal. Winter jobs could involve working at ski resorts, for example, while summer work could entail working at a summer camp. There are also holiday jobs. Florists usually need temp workers around Valentine's Day, for instance, while retailers often hire gift-wrappers around Christmas.
Take the opportunity to start your own business.
If you're out of work, this might be the perfect time to start your own business. The first step is to establish a business entity, like a Limited Liability Company. An LLC is easier to set up than other entities, like corporations. It also offers tax advantages and protects your personal liability in case of legal issues. Different states have different regulations and requirements for LLC formation, so make sure to check your area's rules before proceeding. Business formation services can help and will spare you pricey lawyer's fees.
Revamp your budget to minimize spending.
Until you're on more secure financial ground, it's best to cut back on your spending. Create a written budget to guide your expenditures. Payoff Life offers an easy five-step guide. First, you have to determine what money is coming in, such as unemployment benefits. Then, you have to calculate expenses, like rent, utilities, and food. Calculate the difference and decide what to do with any surplus. For example, you may want to start saving for retirement. Finally, update your budget regularly.
Start making plans for a healthier financial future.
If you're struggling with your budget, consult a financial planner to help you figure out how to create an investment plan with a goal towards financial independence. For example, they can advise on how to best set aside any surplus funds, whether that means saving for retirement or investing.
When you're out of work, it's understandable to be worried about money. Hopefully, the above guide will alleviate your stress. As you can see, there are many ways to get an income that will keep you afloat financially until you secure a more permanent job.
Finalize your Emergency Financial Bucket
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Beacon Wealth is committed to giving consumers the resources they need to thrive financially. For more help in navigating the complex world of money, contact Beacon Wealth’s offices today.
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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor