4 Financial Moves To Make If You Live in One of 28 States With Increasing Unemployment
Becoming unemployed is a real fear for anyone who has necessary expenses to cover each month or a family to provide for. According to a report from the Bureau of Labor Statistics, several U.S. states are experiencing a concerning rise in unemployment rates.
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California, Connecticut, Rhode Island, Maine, Alabama, Washington and Colorado are just some of the 28 U.S. states where unemployment numbers have risen. If you live in a state where layoffs and unemployment are becoming more common, there are still a few things you can do to plan your finances strategically to help manage the risk.
1. Build an Emergency Fund
An emergency fund is your financial safety net during periods of uncertainty. Aim to save at least six months’ worth of living expenses. This fund can help you cover essential costs, such as housing, food and healthcare, while you search for new employment and other resources.
2. Reassess Your Budget
To help increase your savings cushion and plan against a potential change in income level, reassess your budget so you know what your core needs are. Focus on essential expenses like rent, utilities, and groceries.
Reduce discretionary spending so you spend less but don’t cut out fun and entertainment completely. If you have funds available, this could also be a good time to pay down any consumer debt to eliminate that liability.
3. Beef Up Your Resume
Whether you are facing potential unemployment or not, it’s always a good idea to keep your resume current and updated. Be sure to highlight transferable skills and network on and off the internet. You can participate in industry-specific groups, attend networking events and utilize social media to grow your professional circle.
4. Learn New Skills
California’s labor market specifically worsened in the tech sector as companies laid off thousands of workers in this field. If you feel your job field is in danger of layoffs, you may want to consider expanding your skillset during this time. Explore the option to get new training or certifications. You can also look into freelancing and offer a valuable service on the side to diversify your income.
Living in a state with increasing unemployment rates can be financially challenging, but it’s important to remain proactive and strategic. Preparing for financial changes in your income level can help improve your financial stability now and later down the road.
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