How to Live Off Unemployment

Co-authored by Hannah Madden

Last Updated: September 24, 2021 References

Losing your job can be stressful, especially if it was unexpected. Fortunately, unemployment benefits can help you pay your bills as you look for a new job to get back on your feet. Most states don’t provide enough money to cover all your expenses in a month, so we’ve compiled some helpful tips you can use to live off unemployment. Keep reading to learn how you can stretch your money and make extra cash as you search for a new job.

Method 1

Method 1 of 12:
Apply for unemployment benefits as soon as possible.

0

1

1
It can take up to 3 weeks to start collecting your unemployment. Before you do anything else, head to your state’s Department of Labor and apply for unemployment benefits. You can get unemployment benefits if you lost your job at no fault of your own, even if you’ve been fired. Some states require that you apply in-person, so check out your state’s website for specifics.^{[1]
X
Trustworthy Source
USA.GOV
Official website for the United States federal government
Go to source}
- For a list of unemployment offices by state, visit https://www.dol.gov/general/location#.UHBQA1HfJ8F.
- Usually, the amount of unemployment you get is based on what you made in the past 52 weeks. Generally, you’ll make about half of your previous income on unemployment.
Advertisement

Method 2

Method 2 of 12:
Tally up your total monthly expenses.

0

1

1
This is how you can start creating a budget. Sit down and make a list (or a spreadsheet) of everything you spend money on in a single month. Make sure to include food, rent or mortgage, gas, car expenses, insurance payments, bills, and entertainment. Once you have a total, you’ll know how much you need to make in a month to cover all your expenses.^{[2]
X
Research source}
- Unfortunately, unemployment will probably not be enough to cover all of your expenses. However, we have some tips on how you can stretch your dollars and cut back on your spending to make living on unemployment much easier!

Method 3

Method 3 of 12:
Look for savings within your budget.

0

1

1
Take a look at what you spend to see if there’s anything you can cut back on. For instance, if you spend $100 on an internet package, call your provider and see if there’s a cheaper one you could sign up for. If you pay a lot for groceries, consider collecting coupons to save a few bucks. Save any clothes shopping for when you have a job again, and try to only spend money when you absolutely have to. The more you can save, the less money you have to worry about making every month.^{[3]
X
Research source}
- Things like entertainment and eating out aren’t necessities, so really try to curb that spending while you’re unemployed.
Advertisement

Method 4

Method 4 of 12:
Reduce your food costs.

0

9

1
Bring coupons to the grocery store and cook your meals at home. Food costs can really add up, especially if you eat out a lot. Try not to order takeout, and do as much cooking at home as you can. If you need more money to buy groceries, consider signing up for SNAP benefits to tide you over until you get a job again.^{[4]
X
Research source}
- To see if you’re eligible for SNAP benefits, visit https://www.fns.usda.gov/snap/recipient/eligibility.

Method 5

Method 5 of 12:
Cancel any unnecessary subscriptions or memberships.

0

8

1
Ditch the Netflix or Hulu account, at least for the time being. Take a look at your monthly expenses and unsubscribe from anything that isn’t strictly necessary right now. Streaming services, music players, or newspaper subscriptions can all wait until you have a little more income coming in.^{[5]
X
Research source}
- Consider asking a friend if you can borrow their streaming account until you get a job again.
- Keep in mind that you don’t have to unsubscribe from everything! It might be nice to have some entertainment as you job search. Consider keeping the cheapest one and getting rid of everything else.
Advertisement

Method 6

Method 6 of 12:
Prioritize your bills.

0

3

1
If you have to choose some over the others, make sure you know which ones. You should always prioritize paying for food so that you and your family can eat. If you have to fall behind on other payments, like rent, student loan payments, or credit card bills, consider calling up your provider and asking for an extension. Most companies and landlords will be forgiving, especially if you explain your situation.^{[6]
X
Research source}
- If you lost your job during the COVID-19 pandemic, it’s even more likely that companies will have some type of forgiveness program that you can take advantage of.
- If you had healthcare through your employer, look into temporary healthcare. In the United States, you can apply for COBRA coverage and get healthcare for up to 18 months.

Method 7

Method 7 of 12:
Try freelance work for extra cash.

0

6

1
If you haven’t gotten a new job yet, you can still make some money. Sign up for a freelance website to make some extra cash writing, editing, or doing legal work. There are a lot of freelance opportunities out there you can apply for to give you some extra cash while you job hunt.^{[7]
X
Research source}
- Writing and editing are the most common categories for freelance jobs, but you might also be able to find some tutoring, mentoring, or virtual assistant jobs.
- Try pet sitting, house sitting, dog walking, or even doing online surveys on sites like Survey Junkie. You might not get rich, but it’s a great way to get some quick cash.
Advertisement

Method 8

Method 8 of 12:
Make extra money via your hobbies.

0

3

1
Is there anything you do in your free time that you can sell? For instance, if you’re an avid woodworker, maybe you can take commissions to make furniture or cutting boards. If you’re a great crafter, maybe you can focus on making jewelry to sell on Etsy. Jobs like these might not pay a lot at first, but they’re a great way to keep the cash flowing while you’re on unemployment.^{[8]
X
Research source}
- You can also advertise your products on social media to get more customers via your friends and family.

Method 9

Method 9 of 12:
Apply to a temp agency to get placed at a job.

0

3

1
If the job market is tough, you can usually get a temp job. Temp agencies place you at a job that you might only do for a few months. Although it probably won’t be the exact job you’re seeking (most temp jobs are some form of office work), it can be a nice way to earn cash while you’re unemployed. Plus, some temp jobs lead to full time jobs, so it can be a great way to get your foot in the door at a company nearby.^{[9]
X
Research source}
- You can find temp agencies near you by searching “temp agency” + “your area.”
Advertisement

Method 10

Method 10 of 12:
Sell any possessions that you don’t need.

0

9

1
This is a good way to make quick cash to pay your bills. If your payments are looming and you aren’t quite making enough, consider looking through your home to see if there’s anything you could part with. Then, list it on Craigslist, Facebook Marketplace, or OfferUp to get quick cash in as little as one day.^{[10]
X
Research source}
- Even old things, like collectors items or vintage pieces, can be sold on sites like eBay.
- If you have anything in your wardrobe you can part with, consider selling your old clothes on sites like Depop or Poshmark.

Method 11

Method 11 of 12:
Reach out to friends and family for support.

0

7

1
This can be monetary support or simply emotional support. If you have any friends or family members that might be willing to loan you money, consider asking them for help in your time of need. If you’re doing okay on cash this month, lean on your friends and family for support as you job hunt. Losing your job is stressful, so having someone to talk to can be a big game changer.^{[11]
X
Trustworthy Source
HelpGuide
Nonprofit organization dedicated to providing free, evidence-based mental health and wellness resources.
Go to source}
- You might not realize it, but a lot of people have gone through the stress of losing their job before. They may have some insight on how you can make the process easier on yourself.
Advertisement

Method 12

Method 12 of 12:
Practice self-care.

0

10

1
It’s probably the last thing on your mind, but it’s still important. As you look for new jobs and figure out the stress of paying your bills, try to set aside 10 to 15 minutes a day to do something nice for yourself. Read a good book, listen to music, take a bubble bath, or go out into nature. Self-care can help lower your stress levels and leave you more level-headed to tackle the day.^{[12]
X
Trustworthy Source
HelpGuide
Nonprofit organization dedicated to providing free, evidence-based mental health and wellness resources.
Go to source}
- Self-care looks different for everyone, so don’t be afraid to try a few different methods until you find what works for you.