Unfortunately in this economy, many Americans are losing their jobs and forced into unemployment. Being unemployed can cause stress on yourself and your family. When will you find another job? How are you going to pay your bills?
Being unemployed will make your mind race, but it is possible to grow your savings account during this time. It just takes some dedication and hard work.
1. Set Up an Interest-Bearing Savings Account
If you don’t already have a savings account, now is the time to get one. But don’t simply take any savings account your bank will throw at you. Try to find one that will provide you with interest. While the percentage rate on the interest may not be that much, it is still earning you money without you needing to do much.
2. Rework Your Budget
After you set up your interest-bearing savings account, the next thing you must do is take a good, hard look at your finances and your budget. While you were working, you probably spent money on things that are not considered a necessity, such as dining out and shopping. Take a look at your budget, and decide what is a necessity and what is a luxury. Try to cut your luxury budget in half, or if possible, out completely, and place that money into your savings account.
3. Give Your Credit Card a Break
While unemployed, credit cards can be your worst nightmare. It is too easy to buy something you can’t afford by throwing it on a credit card, but this is not a good idea. You need to eliminate your debt, not increase it by taking on a credit card payment you can’t afford. Try to live on a cash-only basis. If you cannot afford something in cash, don’t buy it. The money you would have spent on a monthly credit card bill can now be placed into a savings account.
4. Get Creative
Even though you need to cut back on luxuries, it doesn’t mean you have to stop spending money altogether, you just need to get creative. Start using coupons when grocery shopping and purchase items that are on sale. Cooking meals at home will be less expensive than eating out. If you do want to eat out every now and then, visit restaurants that have specials, such as Kids Eat Free days, or those that accept coupons.
If you’re in need of new clothes or household items, try shopping at more bargain-based stores instead of department stores. Try to purchase items that are only on sale. Then take the money you saved and place it into your savings account. Even if you only saved a small amount of money, it will quickly add up, and you’ll be shocked at how much your savings will grow.
Another great way to grow your savings is to de-clutter and sell items you no longer need. Take some time and go through your attic, closets and garage and find things you no longer use and try to sell them. If you have enough items, you can have a garage or yard sale. If you don’t have enough for a big sale, place the items on a selling website, such as Craigslist or eBay. Once the item sells, you will have extra cash to place into your savings account. Not only will you grow your savings, but you’ll also have a cleaner and more organized house.
Being unemployed doesn’t have to cause panic. There are plenty of things you can do to keep money in the bank and a roof over your head. Growing your savings is not going to be easy, but if you work hard and remain dedicated, you will have a nicely padded bank account when you do start working again.