Shoestring Budgeting for the Jobless

How to save between $505 and $3,370 every month

The second you find out that you are unemployed, you should be thinking about your budget and how to trim it. Over the years, I have become an expert on frugality, and I owe it all to joblessness. (See, there really is a silver lining in every dark cloud!) All ten of these tips are things that I, personally, do or have done. If you have others, please add them in the comments. (It makes me so happy when people comment!)

Nine ways to stretch your unemployment budget:

  1. Cut out cable TV FIRST. For whatever silly reason, I have known people who cut their internet service before they cut their TV. You have lots of time, but you don't have time to watch TV. Plus, the new digital signals being broadcast over the air are crystal-clear, numerous, and free. I get 40 stations, including about 10 in HD, and I don't pay a dime for TV. Call your cable company right after you file your unemployment claim (which is the first call you should make). (Savings: $50-$100 per month.)
  2. Eat healthfully. Buy big bags of brown rice and dry beans. Stock up on spices. Pick up whatever fruits, vegetables, and oils are on sale. Cook! It's tastier, healthier, and much cheaper than buying processed foods or eating out. (Savings: $50-$500 per month, depending on how you eat now.)
  3. Tune up your bicycle, and ditch the car. You will love your bike far more than you love your car once you get to know it a little better. You will feel free, strong, and clever as you save hundreds of dollars a month, plus gym membership fees. (Savings: $200-$1000 per month by the time you add it all up.)
  4. Negotiate your debts down. One of the great benefits of unemployment is that your creditors will be happy to work with you. Paradoxically, your negotiating leverage grows when you lose your job. Lenders don't want you to default or go bankrupt. Debt consolidation also works for some people. (Savings: $100-$1000 per month, depending on your debt load and negotiating skills.)
  5. Quit drinking. If you don't have a drinking problem, this won't seem like much of a sacrifice, and if you do have a drinking problem you'll try to rationalize your way into continuing drinking. But you really need to quit. It's expensive to drink. (Savings: $20-$600 per month, depending on how much, what, and where you drink.)
  6. Become an energy miser. You can live without air conditioning if you take cold showers. You can turn the heat way down and wear a sweater. You can unplug things when you're not using them, air dry your clothes, and take lots of little steps to save energy. (Savings: $25-$100 per month depending on how conservative you are now.)
  7. Don't change your clothes every day. This saves you money in two ways: You do less laundry, and your clothes last longer. While you're at it, mend your clothes instead of buying new ones. (Savings: $25-$100 per month)
  8. Use Dr. Bronner's soap. I spend about $5 per month on all my soap needs, including shampoo, conditioner, dish soap and laundry detergent (which I don't need to buy because Dr. Bronner's is superior in all those areas), and I'm clean as a whistle. (Savings: $5-$20 per month, depending on what kind of sucker you are for buying fancy lathering agents.)
  9. Get rid of your land line. You don't need it. Cell phones work fine nowadays. (By the way, if you are unemployed, you may be eligible for a free cellphone and wireless service.) (Savings: $30-$50 per month)

Let's add it up:

Item Min. Savings Max. Savings
Cable TV $50 $100
Food $50 $500
Transportation $200 $1000
Debt $100 $1000
Drinking $20 $500
Energy $25 $100
Clothing $25 $100
Soap $5 $20
Phone $30 $50
Total $505 $3,370

Not too shabby, right? Imagine the shape you would be in now if you had saved that much every month when you were flush! Good luck with your unemployment budgeting.

Good luck!

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Comments

Excellent advice. For those

Excellent advice. For those getting a bicycle, invest in a good lock because bicycle thefts are on the rise (that's really a no brainer). The best piece of advice out of all of these is to eat whole foods at home. When a big bag of beans that can feed me for 3 days runs me 2 dollars as opposed to 7 dollars a meal eating out, it should be plainly obvious.

chuck's picture

Another bike trick...

You can beat your bike up a little. Wrap some duct tape around the frame and scratch it up. Ride it a lot so that the wheels get dirty. Thieves won't look twice.

When life hands you sh*t, make fertilizer.

Use two different locks

Use 2 locks: a heavy-duty U-lock for locking the frame to a secure object, and a heavy-duty cable lock for locking the wheels and seat to the frame and the secure object.

It's best to use quick-releases for your wheels and for your seat post clamp, so you can take the wheels and seat off entirely, and feed the cable lock through all 3 items, around your bike frame, and around the bike rack or other secure object.

My husband lost a front wheel once, and had to ride home more than once w/o a seat before using this method.

Don't Buy Download

never buy a PC game, you will be bored with it soon anyway, much better to download a trial version, when the trial is up just delete cookies and may set reg values nil then you can redownload again.

Also be come taller to get ahead or get a job, people tend to take more notice of tall folk. How many presidents have been short. This site www.tallplace.com offer a secret way to increase your hight by a couple of inches or so.

Cheers

chuck's picture

OK

I suppose that's sound advice, but I would take it a step further and say don't play PC games because they're time thieves. Unemployed people can't afford to waste time.

When life hands you sh*t, make fertilizer.

Let's Rally for Jobs!

Now that I am unemployed, I have time to make a difference. Why don't all of us get together and rally for jobs? We need to quantify how many of us there are (not just govt estimates),show some solidarity and voice so urgency. My savings are draining away!

chuck's picture

That's the attitude!

We need to get together and organize. The reason the Wall Street and K Street zombies are sucking us dry is that they are organized and we are not.

My savings are long gone.

When life hands you sh*t, make fertilizer.

More ways to save

You can also save more on groceries drinking water instead of soda or anything else. Tea is 2nd cheapest.

Also cup-o-soup and a 50 cent pack of hotdogs is a nice meal. tastes like chicken n dumplings

Every time you think about buying out a hamburger and french fries and a drink think about tha 5lb package of hamburger meat you can buy at the store with all that wasted money you spent on fast foods.

If you simply MUST eat out because you are tired of beans and rice and cup-o-soup and hotdogs goto a buffet. You get much more of a selection and a lot more food. We have Mazzio's Pizza here and for like $6.48 you get all the pizza you can eat.

Use coupons as much as possible. Buy things on sale as much as possible. I been getting 5lb of hamburger for .99 cent a pound by just waiting on the sales and then stocking my freezer up with it.

Use the internet to find coupons. only use black ink in your printer to save on coupon printing.

If you're single and have extra rooms put an ad in the paper for room for rent. Add a small fridge in the room an a microwave and that should bring you in 300-400 dollars extra a month. Just be picky who you rent to and get references. Always get references and call them.

chuck's picture

All very good advice

Thanks.

When life hands you sh*t, make fertilizer.

Don't save make!!

One way to get a trickle of cash coming is to sell all your old stuff on ebay, sell old tools, toys, cycle parts, stationary, anything you can find laying around and just let the pounds/dollars build up in your paypal a/c.
One trick is to put the postage charge at a pound more than it will cost to send to your buyer, that way even if you only sell something for a pound, the postage money helps even more. Also I build those free websites and put google adsense adverts on each site, like this one:
www.airport-tycoon-4.homestead.com and as people visit and sometimes click on the adverts I get a few more coppers in, but be warned this only pays out once you reach about $60 so may take a few weeks, but every little helps.

Save on insurance

Another cost cutter is raising your deductible on your car and home owners insurance policies. Not too drastic, but raising the deductibles up just one notch can add up to substantial savings in your yearly or monthly premiums. Also Allstate offers another savings if you let them take the payment directly out of your bank account. By raising both deductibles slightly and paying both premiums directly out of my bank account I managed to save almost $600. That's $50 more a month at least a tank of gas. Every little bit helps.

chuck's picture

Good tip.

Just make sure to drive extra carefully!

I have a number of accounts that offer discounts if you pay by automatic debit from your bank account, but I still pay my bills by mail for one reason: I mail those envelopes to U.S. addresses, and I assume real people have to open them, stamp the checks and make sure the books balance. To me it's worth the extra $1.47 a month to do my little part to help keep those people working. That's why they offer the discounts for automatic debit -- because they want to eliminate those jobs.

When life hands you sh*t, make fertilizer.

Screw it...

I'm going into the military..... war time or not... I'm already dead anyway....

chuck's picture

Stay safe, man

Keep your head down and your eyes up.

When life hands you sh*t, make fertilizer.

Thanks for the great tips

I'm currently still employed, but there have been budget cuts at my organization and I'm nervous about the coming months. I'm reading all the literature I can and gathering all the info and resources out there so I can be somewhat prepared in case worse comes to worse. A few of my friends are looking for work and feeling down so I'm also looking for ways to help them.

This is a great site--thank you so much, Chuck.

chuck's picture

Thank you!

It makes my day when someone finds this stuff useful, and your kind and generous donation was very much appreciated.

Good luck! I hope you keep your job. Save your money in the meantime.

When life hands you sh*t, make fertilizer.

I am currently unemployed for

I am currently unemployed for the first time. I made sure I saved money while I had a job. It sure came in handy since it took 4 months to get unemployment rolling. Best advice- SAVE MONEY!!! Have a plan. Pay off any debt.

chuck's picture

What is it they say about planning?

If you fail to plan you might as well plan to fail?

If anything good comes out of this horrible recession/depression thing we're in, it will be a new appreciation for frugality.

Thanks for your comment.

When life hands you sh*t, make fertilizer.

I stopped buying coffee and a

I stopped buying coffee and a donut every morning at Dunkin Donuts and I'm saving $110-dollars a month...thank you for your web site I was looking for some relief and found it on your web site that i am not alone...do you have any suggestions on unemployment and their hearings i was wrongfully let go from my job..
thanks,

Michael G.

chuck's picture

I'm glad you found it helpful

Cutting out little things can really add up.

As for your question about the hearings, I'm guessing they denied your claim.

All I can tell you is that you should collect every piece of evidence you can. Bring a big, fat stack of papers: performance reviews, commendations, e-mails, affidavits from co-workers if you can get them. If they let you go but claimed that you quit, dispute it like your life depends on it. Go down swinging.

Good luck to you.

When life hands you sh*t, make fertilizer.

chucks the man

hey buddy. been unemployed for a month now.

Have barely enough savings to enter next month.

I just wanna say thanks. As when i read most your pages. I definatly feel a simular mindset to the uncomfortable symptoms that plague our situations while unemployed.

Goodluck everyone and thanks again chunk. for the wisdom( and i know you like comments. normally i surf and snoop around sites but say nothing.. )

I am ashamed to admit this, but I planned to start working at labor ready, following the monday holiday. It is a means to make cash while i A, secure a new job in the meantime( maybe through the same shitty temp agency) or b, gives me a means to keep cash generating ,while i can pursue real job searching. I have found kijiji.com to be interesting as you get to the know the exact time a job ad was posted, its volume seems to be picking up nowadays. can come across odd ball jobs, which may appeal to some. in the trades or labor setting.
service canada ( sorry im canadian) has a not too bad job bank.
those employers seem the most desperate for staff, (yet the jobs are not the greatest i bet). craigslisting is even evolving.

anyhow thanks chuck. with mutual respect. I really was uplifted and encouraged in a medium-high way just by browsing some of your articles, I know it is selfish to say , but remembering i am not alone and raising awareness that other jobless people have the same struggles. sometimes even worse situations. it does lift ones spirits in knowing they could have stuff worse or like. makes one more greatful for what they currently have in this moment. take care

chuck's picture

Don't be ashamed

Nothing wrong with labor. Honest work is always honorable.

Good luck to you. Thanks for reading and thanks for your comment.

When life hands you sh*t, make fertilizer.

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