Payment Power When Earning Potential Shrinks: The Basics

by - Wednesday, June 27, 2018


Paying the bills and putting food on the table isn’t easy when you are working. So, when tragedy strikes and you are unemployed, it’s ten times as difficult. Unfortunately, life isn’t a Hollywood film and there isn’t a happy ending. People either find a way to survive or they struggle. As harsh as it sounds, it’s the way the world works and we all need to wake up to the fact. Those who don’t will inevitably fall behind. The problem with earning while being out of work is simple: there is no way to make money. But, there are ways to cover the costs of living and you can find them below.

Start A Barebones Budget
As the name suggests, this involves living as frugally as possible for a period. Certain things are essential and they are the things which need to go on the list. Everything else is an indulgence that you can’t afford for the time being. Maybe in the future, but right now you need to pay for rent, food, household bills, and transportation. A budget calculator or a virtual assistant can help you create a budget and stick to it in the long-term. Also, remember to negotiate deals. Creditors would rather get their money in dribs and drabs then receive a total of £0.

Dip Into The Emergency Fund
But what about when there isn’t enough money to cover the basics? What do I do then? It’s a good question and one which was answered years ago when you started an emergency fund. This is an account with money in that you really can’t touch. It’s the definition of a rainy day bank balance and it’s time to cash in the chips. Don’t take out the full amount and blast it in one go. Instead, withdraw enough to live off and then re-evaluate. If you don’t have one, now is the time to start saving. Learn how to at moneycrashers.com.

Invest In Debt Protection
People with money are best paying off mounting arrears. You know so that you don’t have to bother. As idealistic as it sounds, this is possible with the right investments. Insurance companies take monthly premiums and payout when the proverbial hits the fan. And, when they don’t, the experts at Longtermdisabilitylawyer.com keep them honest by fighting back. On a slightly morbid note, life insurance policies offer the same protection. The difference is that this method looks after loved ones once you are gone.

Apply For Benefits
Being on the Job Seekers Allowance isn’t nice and you can feel like you're letting yourself down at times; however, in some cases it's necessary. For starters, you aren’t someone who is trying to game the system. Instead, you’re the guy or girl with a genuine problem which prevents them from working. Government sick pay is around for the likes of you, not the immoral folks without any get-up and go. Secondly, it’s a means to an end. Take the benefits now so that you can recover in peace and get back to work as soon as possible.

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