As of August 2013, the unemployment rate in Sacramento is approximately 10.4% — considerably higher than the national rate of 6.7%.
Nobody wants to imagine losing their job. But given the present economic condition in the nation, pink slips are sad realities. Some employers try to retain employees for as long as they can. However, when you add in a recession and low revenue, laying off employees is often the only alternative. It’s either this, or go out of business.
Although lay offs benefit employers, it’s not exactly a win-win situation. When there are fewer people working in an office, the workload increases for everyone. This can result in longer days and added frustration. And for employees who lost their position, the effects can be disastrous.
- Unable to pay credit card bills. Without a job, some people might rely on credit cards to meet their monthly expenses. But if unable to keep up with minimum payments, they may deal with creditor harassment and a lower credit score.
- Fall behind on loan payments. For those who have auto loans and mortgage loans, losing a job can trigger payment problems. Since these creditors don’t accept partial payments, falling behind on bills can result in foreclosure or a repossession. This negative activity lowers credit scores and stays on credit reports for up to seven years.
- Can’t afford home repairs and maintenance. Ever heard the expression, “when it rains, it pours?” There is a chance that unexpected expenses with your house will pop up after you’re laid off from work. But without steady income, it may be impossible to meet these expenses.
Losing a job is undoubtedly an unpleasant experience, and it can trigger stress and a lot of frustration. However, options are available to you. During any type of economic crisis, adjusting your spending and looking for ways to save can keep cash in your bank account.
Here are four doable ways to improve your cash flow.
1. Rent out a room in your house.
Do you have a spare bedroom in your house, or maybe a finished garage? If you lose your job and need help covering your housing expenses, getting a roommate can help alleviate some of your financial stress. If you’re currently using this space as storage, self storage in Sacramento provides a safe place to keep your belongings.
“Self storage facilities offer a variety of features to protect your belongings. Each facility is different but some of the features to look for include electronic gates with coded access, monitored video surveillance, well protected (fences) and well lit facilities,” says Storage.com.
2. Do odd jobs around the neighborhood
Do you have any special skills? If you’re familiar with lawn care, housekeeping, floor care, painting or another service, put your skills to go use and market your services throughout the neighborhood.
It usually doesn’t cost much to get started with a simple side business. If you have some cash in savings, invest in yourself and purchase the needed supplies. Likewise, it doesn’t take much effort to pass flyers around the community. Additionally, take advantage of social media to advertise and network.
Any cash earned from your side business can go towards paying bills or replenishing your savings account. You never know — your business might replace your full-time income. And if you choose to grow your business, you might eventually afford a small storage unit to house your equipment and supplies.
3. Get rid of unnecessary services.
When you’re receiving a steady paycheck, it’s easy to waste money on unnecessary services, such as a gym membership, cable television, housekeeping services, lawn care services and any other convenience. And unfortunately, some people try to maintain their same standard of living after losing a job. This is the easiest way to go broke.
The sooner you accept reality, the better. Losing your job is the perfect time to reevaluate your budget. This way, you can see where your money goes and make needed adjustments.
For example, eliminating all of the above services can add $200-$300 back into your budget.
4. Sell your belongings
The thought of parting with your personal possessions might leave a bad taste in your mouth. But if you need to save money and pay bills, liquidating some of your assets is financially responsible.
To get started, go through your attic, basement, and closets and pull out items that you no longer need. These might include clothes, high-end purses, shoes, toys, electronics and decorations.
Do you have a self storage in Sacramento? A storage unit is the perfect place to keep extra stuff. However, if you no longer need these items, they shouldn’t take up valuable space. Clean out your storage facility and have a yard sale, post items for sale online, or take them to a consignment shop.
A job loss is scary, stressful and frustrating — but you can survive. To get through this tough time, you’ve got to adjust your spending and think of creative ways to earn a buck.