US News & World Report: “How to Budget for Long-Term Unemployment”
By Susannah Snider, Senior Editor, Personal Finance
October 6, 2020 — For millions of out-of-work Americans struggling to find job opportunities during the monthslong coronavirus pandemic, navigating unemployment is a long-term struggle.
Among unemployed people, 58% were jobless for 15 weeks or more, according to seasonally adjusted September data from the U.S. Bureau of Labor Statistics, and 19% were without employment for 27 weeks or more.
That’s a dispiriting situation to endure, and it can quickly become financially unsustainable as savings accounts are depleted, bills pile up and benefits expire.
So what can long-term unemployed Americans do to build a budget for ongoing joblessness? Here are the accounts you can tap, bills you can deprioritize and strategies you can use to survive long-term unemployment.
Start Cutting Expenses
Be brutal, yes, but also be kind to yourself. If a video-streaming service like Netflix is the only way you’re getting entertainment in quarantine, consider keeping it, says Marguerita M. Cheng, certified financial planner and founder of Blue Ocean Global Wealth in Gaithersburg, Maryland.
“But anything that’s not useful during this time should be cut or renegotiated with service providers. Prioritize needs such as food, shelter and medications.”