Whether you just got fired, laid off, or you quit your job in a blaze of glory, being unemployed usually sucks. From the government paperwork to reworking your resume, here’s your survival guide to keep yourself sane, productive, and financially afloat when you’re unemployed.
Step 1: File for Unemployment (When Applicable)
If you’ve been laid off, quit, or were fired, you might be eligible for unemployment. You can file for unemployment if you meet certain state-specific requirements, but generally you must have worked for an employer for at least a year and must actively looking for work.
The process of filing for unemployment differs from state to state. In most states you can file for unemployment online, but in others you’ll need to show up in person. Likewise, you need to get in touch with your state unemployment office to see what documents you need, but in general everyone needs to have a few forms and numbers:
Social Security number
Driver’s license number
Name, address, and phone number of your previous employer
Employer’s Federal ID Number (usually on your paystub)
Date you started work
How much you earned over the last year
After you apply for unemployment benefits, the state reviews your case, and then decides if you’re eligible. They’ll also decide how much you get paid. Again, these vary based on your state, but it usually averages around half of your previous pay (that maxes out around $500-$600 per week depending on the state) for the first few months, and it typically drops off from there. After you’re approved for unemployment benefits, they’ll let you know how much money you’ll get a week and for how long you’ll get those checks.
Once you’re approved, you’ll file for benefits every week online, and you’ll typically need to check in with the unemployment office in your state to show you’re actively looking for jobs. When you have an idea of how much income you’ll bring in from unemployment, it’s a good idea to create a simple budget with a service like Mint so you can get used to your new income.
Step 2: Get Some Health Insurance
When you lose your job, you’re also losing your benefits, and that means you likely won’t have health insurance. Thankfully, you have a couple of options for keeping that health insurance alive.
The easiest method to continue insurance is COBRA (Consolidated Omnibus Budget Reconciliation Act). COBRA is offered to you after you’re terminated from a job as a way to continue the coverage you had under your employer. It’s typically pretty expensive and the price varies by individual, but it’s cheaper than paying out of pocket for the same coverage.
If COBRA is too pricey, you can also apply for the new federally subsidized health care provided under the Affordable Care Act. Since you’re unemployed, you’ll typically be eligible for either Medicaid or the new subsidized coverage for the duration that you’re unemployed. What you pay is based on your income (including unemployment benefits), and varies from person to person. It will undoubtedly be cheaper than COBRA though, so it’s worth looking into for temporary health insurance while you look for a job.
Step 3: Cut Down on Recurring Expenses
Now that you’ve got the super important stuff like health insurance and unemployment worked out, it’s time to lower your bills so you actually make the payments you need to. From your cell phone to your mortgage, you’ll need to get those monthly dues as low as humanly possible.
We’ve covered a ton of different ways to lower your bills. Here’s what you can and should do now that you’re unemployed:
Reduce your energy bills with no cost or sacrifice.
Save money on your monthly expenses by making a few changes.
Make a few phone calls to cut the price on cable, internet, or cell phones.
Decide whether to refinance to save on your mortgage.
Save money on your groceries (while still eating healthy).
Change your spending habits and automate your finances.
Obviously, you’ll also just need to tighten your belt a little as well. Cutting cable is usually the first thing you should do, and you won’t even miss out on much entertainment. Likewise, you can trim the fat from all kinds of bills by just asking for discounts. If none of that seems to be working, call up your service providers and explain your new circumstances. There’s a reasonable chance that since you’re not going into work everyday, your usage might be different. For example, maybe you won’t need that big data package on your cell phone, or you can change your car insurance to reflect the fact you no longer have a two-hour commute. Not paying isn’t an option, so make those calls, explain your situation, and chances are your service providers will work with you.
Step 4: Rework Your Resume
Now that you’ve got your cost of living taken care of, it’s time to actually start looking for a new job. Chances are that if you’ve been employed for a while, your resume is pretty out of date, so you’re going to want to rework it to get ready to apply for a new job.
We have covered a ton of different tips and tricks to reworking your resume, but here’s what you really need to get started:
Simplify and get rid of junk resume items
Fix these six common resume flaws
Add new experiences without adding more pages
Generate more interview with your resume
Make your own super simple, perfectly organized resume in five minutes
Cut overused terms (like motivated, innovate, etc) from your resume
Make your personal landing page stand out
and more.
You want to get your resume updated, looking good, simplified, and organized in a way that it’s clear what type of jobs you’re applying for. It’s pretty easy to spend your time “perfecting” your resume when you’re unemployed, but don’t waste too much time on it. Once you get it back in shape, just head straight into actually applying for jobs.
Step 5: Start Your Job Search
Nobody likes job hunting, but when you’re unemployed, looking for jobs essentially is your only job, so treat it like one.
Depending on the type of job you’re looking for, you have a ton of options for places to search for work. Traditional sites like Monster.com, LinkedIn, and Craigslist are a good place to start, but you’ll also want to look at less popular sites like OneDayOneJob, SimplyHired, Dice, or Authentic Jobs. Don’t be afraid to switch careers along the way.
When you find jobs you actually want to apply for, you’ll usually need to write up a cover letter for each one. We’ve talked before about writing a cover letter that’ll actually get read, and the basic skills you want to demonstrate are incredibly simple:
You’re smart.
You’ll get things done.
You’ll fit in well with their corporate culture.
From there, just make sure you write a new cover letter for each job you apply for, seal the deal with a kick ass final sentence, and prepare yourself for the job interview.
Step 6: Keep Yourself Sane and Productive
Once you’ve worked through all the technical details of filing for unemployment, lowering your health care costs, lowering your bills, and you’ve started applying for jobs, you’ll likely find yourself with a lot of extra time on your hands. At first, this will probably seem pretty awesome, but in due time you’ll likely start feeling the psychological effects of unemployment. Thankfully, there’s a lot you can do to combat those feelings.
The main thing you’ll want to concentrate on is making sure you’re still sticking to some type of routine. As we’ve noted before, keeping a schedule when you’re unemployed—with lunches, wake up alarms, and projects—can be a great boon for your mental well being. That might be as simple as:
8:00 am: Wake up, take a shower, and eat breakfast.
9:00 am-12pm: Search and apply for jobs.
12 pm-1 pm: Lunch.
1 pm-2 pm: Continue applying for jobs, writing cover letters, etc.
2 pm-3 pm: Exercise.
3 pm-5pm : Work on independent projects.
Obviously your schedule will be different, and each will come with a new set of challenges, but the point is that you want to make sure you’re working toward something productive at all times. That means that even if you’re applying for jobs and not getting anywhere, you’re at least still finishing something that makes you feel productive at the end of the day. For example, the last time I was unemployed for a significant amount of time, I recorded a couple albums worth of music, wrote every single day, and attempted to learn how to code in JavaScript. The days I achieved those goals felt a heck of a lot better than the days I spent playing Call of Duty 4.
If you’re struggling to find something to do with your time, you might want to consider volunteering, taking on a new skill, finding a cheap hobby, starting a free workout routine, or even hunting down a few ways to make money in your spare time. As long as you’re doing something other than sitting around the house feeling bad about your circumstances you’ll be okay.
Photo by Bytemarks, Jason Rogers, marshillonline, and emilio labrador.
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