Money Fix: Tips on making unemployment benefits go farther

Maybe you were one of the 16.5 million who filed for unemployment in the last few weeks, or you expect you could be next. Thankfully the federal stimulus package includes $600 a week for unemployment on top of whatever you’ll receive from the state. Even so, getting along is likely to be a struggle.

Truth is, many people don’t have an emergency fund, a pot of money sufficient to pay expenses for three to six months. According to a 2018 Federal Reserve Board Report on the Economic Well-Being of U.S. Households in 2017, 40% of adults would need to borrow, sell something, or not be able to handle a $400 emergency expense.

If finding a new job was challenging six months ago, in this pandemic, it will be even tougher. In a new survey from SimplyWise, 43% of those who lost jobs said they weren’t confident that they would be employed in the next three months.

So there may not be that quick fix of a new job. For sure you need a strategy for surviving on unemployment. Experts weigh in with ideas.

YouTube and food banks

Make a list of all your expenses. Determine what’s necessary and what can be cut. “Create a budget and stick to it,” said Tom Wheelwright, a CPA and author of Tax-Free Wealth. “It’s a little like counting calories, not really fun, but it works.”

Be ready to let go of cable, Netflix and other subscription services, said Matt Woodley, founder of CreditInformative.com. You can also increase your home and car insurance deductibles in order to lower your monthly premiums. (Be aware that several auto insurers, including Allstate and Progressive, are offering discounts during the pandemic, when most people are driving less.) 

You should review your cellphone plan to make sure you're not paying more than you need to, he says.

Right now, with the lockdown, the idea of not having cable or Netflix may seem like torture -- but get creative.

“There are so many free resources online," said Andrea Woroch, a money-saving expert in Bakersfield, California. "For instance, your library may allow you to borrow digital TV shows, movies, video games, audio/ebooks and more through their digital platforms. Check YouTube for free fitness classes and even toddler dance classes. I just found this really cute dance class for my 3-year-old, and they offer a series of different classes. She is loving it. YouTube is also a great place to stream kids cartoons for free.”

Then see if you can massage your fixed expenses. “Call your landlord, mortgage company and credit card company to see what you can work out to stretch out payments,” Wheelwright  added.

You can add student loans to that list as well.

Also look for opportunities to stretch your food budget, said Leslie Tayne, a debt resolution attorney with the Tayne Law Group in Melville. “If you're struggling to feed your family, don't be embarrassed to reach out to local food banks. If you visit Island Harvest’s website, you can enter your ZIP code to find organizations that provide assistance in your area.

Money sources

Remember that in the CARES Act, there is a provision where you can withdraw up to $100,000 penalty-free from your IRA or borrow $100,000 from your 401(k). “Be sure to set up a payment plan to repay your 401(k) or IRA,” said Wheelwright.

Find ways to make extra cash with online freelance work. Try sites like Upwork.com or Fiverr.com and search online workplaces for remote hiring.

Debt.com recently published "6 Safe Side Hustles to Help You Get by During the Coronavirus Crisis," and you can find them here: nwsdy.li/side.

Also, think about streamlining. While you’re home and hunkered down, go through your stuff and see what you have. Sell items you don't need on Facebook Marketplace, Craigslist or eBay.

While you don’t want to turn to your credit cards first, if you have to, you have to. “Getting into debt during an emergency is fine as long as you use it responsibly and have a plan to get out,” advises the author of "The Rich Bitch Guide to Love & Money,"  Nicole Lapin. “Don’t beat yourself up.”