Unemployment is emotionally and financially overwhelming, and it can be difficult to know what to do after being let go. Saving after job loss protects your finances while you’re searching for a new role, ensuring you can still pay for essentials during this time.

Read on to learn practical steps for surviving financially and building a new path forward.

3 tips for saving after being laid off

Learning how to survive without a job involves strategic planning and budgeting. Below are three tips for staying on track after losing a salary.

1. Set short-term financial goals

Consider looking for temporary positions to supplement your savings. Even $500 can provide a cushion as you look for a more permanent role. Once you find full-time employment, this account can act as the foundation of a larger, longer-term emergency fund.

2. Stay positive and persistent — small wins add up

Layoffs are stressful, and this energy can intrude on your daily life, making it difficult to focus on the job search. To keep up your morale, look for the positives in your situation. Secure part-time work, rein in debt, and cut spending — these small actions lay the groundwork for a return to full-time employment.

3. Use free or low-cost education and upskilling opportunities

Take the time during unemployment to reset and learn skills that help you secure a new position. Find free or low-cost online courses and job training programs to invest in yourself and enhance your skills without spending too much money. 

Sites like Google Career Certificates, Coursera, and Udemy have several budget-friendly options to choose from. Check out your local library, too — many have free career-building resources available. For instance, some assist with resume writing, interview prep, and application questions.

How to survive financially after job loss

It can be challenging to know what to do if you get fired and have little or no money saved. These practical tips help you stay afloat while looking for a new job. 

Assess your current financial situation

Before doing anything, take an honest look at your finances. Start here:

• Identify income sources: If you’re eligible for unemployment benefits, sign up to collect them, and note how much you’ll receive. List these funds alongside remaining company checks, such as severance and unused vacation time payouts.
• Document all current funds: Write down how much money you have in your checking and savings accounts. Add this total to your expected income from the previous step to get a clear idea of how much money you have left. This clarity makes it easier to know how to start over with no job.
• Review ongoing expenses: Go through checking and credit card statements line by line to identify fixed expenses, discretionary spending, and debt payments. 

With this information in hand, you’ll be able to craft a solid budget.

Prioritize essential expenses and build a survival budget

Follow these budgeting tips to survive a pay cut and create a stripped-down, needs-only financial plan: 

• Set your priorities: Put as much as possible toward essentials like housing, food, and insurance. While you can cut back in some of these areas — like using less hot water or taking public transit to save on gas — your well-being should form the basis of your survival budget. 
• Pause or cancel non-essential spending: Avoid costs like subscriptions, takeout, and impulse spending.
• Maintain an emergency fund: Set aside whatever’s left over. During a prolonged job search, expenses like car repairs or medical costs might prevent you from paying bills. Keeping up with an emergency fund, even a small one, can protect you from unexpected setbacks.

Explore temporary income and community resources

Even small sources of income can make a difference when you’re unemployed. Consider these ideas to focus on stabilizing yourself and resetting your budget:

• Try freelancing, gig work, and consulting: Tap into your professional network and online platforms to find short-term work. These opportunities make budgeting easier and even help you save money without a job.
• Sell unused items: Yard sales and online listings are a quick way to generate cash to cover expenses, make debt payments you can’t avoid, and continue padding your emergency fund.
• Seek help from community assistance programs: Don’t hesitate to explore community resources, including food banks and housing aid programs. In most of the U.S., calling 211 will connect you with local experts who can point you in the right direction.

Manage debt and protect your credit

While unemployed, you still need to manage debt to avoid falling behind and protect your credit rating. Below are a few tips:

• Don’t accrue new debt if possible: Try not to rely on credit cards or loans to survive a pay cut or layoff. Taking on more high-interest debt can stop a survival budget before it starts.
• Contact lenders proactively: Call your mortgage lender, student loan servicer, and credit card companies to ask about debt relief and repayment options. Most creditors will work with you, especially if you reach out before missing payments.
• Monitor your credit: New arrangements with your lenders may not show up correctly on your credit reports, so check Equifax, TransUnion, and Experian often. Big dips can be harder to come back from, but catching them early might mean they get resolved faster.

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How Gainbridge can help you build security after a job loss

Being unemployed comes with a lot of uncertainty, but it’s also an opportunity to reassess your finances and create a smart financial plan built for long-term security.

If you’re looking for transparency, ease of use, and flexibility, see if Gainbridge’s digital-first annuities are right for you. We never charge hidden fees or commissions, so you won’t be blindsided by unexpected costs. Explore a better way to grow your money with Gainbridge.

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This article is intended for informational purposes only. It is not intended to provide, and should not be interpreted as, individualized investment, legal, or tax advice. The GainbridgeⓇ digital platform provides informational and educational resources intended only for self-directed purposes.