Save Money And Be Financially Solvent While Searching For A New Job

Added May 1, 2002 by Ilyce R. Glink

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Summary: It's hard enough to save money and be financially solvent when you're working full time. It's even harder to save money and be financially solvent while searching for a new job. Unemployment depletes your savings account quickly and makes being financially solvent a chore. But by cutting back and finding ways to save money like paying bills in smaller amounts, and tapping into your life insurance policy can help keep you financially solvent while searching for a new job.

ANCHOR: ONE OF THE WORST PARTS ABOUT BEING OUT OF WORK IS TRYING TO LIVE ON YOUR UNEMPLOYMENT BENEFITS AND WHATEVER SAVINGS YOU HAVE.

ANCHOR: WITHOUT PROPER PLANNING, YOUR FINANCES COULD TAKE A BEATING. WGN'S MONEY SAVING EXPERT ILYCE GLINK TOOK A TRIP TO THE COMMUNITY CAREER CENTER IN NAPERVILLE AND HAS LESSON THREE OF OUR MONEY 101WEEK: HOW TO FINANCIALLY SURVIVE YOUR UNEMPLOYMENT.

STEVE JESKEWITZ THOUGHT HE'D BE HONEYMOONING BY NOW.

STEVE JESKEWITZ: "THOSE PLANS HAVE BEEN ON HOLD FOR AWHILE."

INSTEAD, THE UNEMPLOYED CONSTRUCTION COORDINATOR SPENDS HIS DAYS LOOKING FOR A JOB -- AND HIS NIGHTS COUNTING HIS PENNIES.

STEVE JESKEWITZ: "I'M NOT GOING OUT TO DINNER, OR TO THE MOVIES, AND DOING A LOT OF THINGS I NORMALLY ENJOY DOING. YOU HAVE TO CUT BACK, YOU JUST HAVE TO BE SMART. IT'S WHAT YOU COULD DO."

IT ISN'T EASY BEING UNEMPLOYED WITH A MORTGAGE AND CAR PAYMENTS. AND WHILE NO ONE EXPECTS THEIR UNEMPLOYMENT TO LAST LONG, YOU HAVE TO PREPARE FOR THE WORST.

THERESE MEYER, ASSOC. VP AG EDWARDS "THE FIRST THING IS, DON'T PANIC. MAKE A LIST OF WHAT YOUR EXPENSES ARE AND WHAT YOUR ASSETS ARE."

CATHERINE GOULET, CPA "IF YOU HAVE SOME BIG BILLS COMING, MAYBE INSURANCE BILLS THAT YOU COULD PAY MONTHLY INSTEAD OF PAYING THEM TWICE A YEAR OR ONCE A YEAR. PAY THEM IN SMALL AMOUNTS SO IT DOESN'T TAKE ALL OF YOUR SPENDING MONEY."

ILYCE: IF YOU'RE HAVING TROUBLE PAYING YOUR BILLS WHILE YOU'RE UNEMPLOYED, HELP MAY BE JUST AROUND THE CORNER. YOUR COUNTY, TOWNSHIP AND STATE SOCIAL SERVICES AGENCIES MAY HAVE CASH AVAILABLE TO HELP YOU MAKE YOUR RENT, UTILITIES, AND MEDICAL BILL PAYMENTS WHILE YOU'RE OUT OF WORK.

IF THAT'S NOT ENOUGH, CONSIDER TAPPING THE CASH VALUE OF YOUR LIFE INSURANCE POLICY. IF YOU HAVE A HOME EQUITY LINE OF CREDIT, THAT COULD HELP PAY SOME BILLS, TOO. IF YOU'VE BEEN UNEMPLOYED FOR 12 WEEKS, YOU CAN TAP YOUR I-R-A PENALTY FREE, BUT NOT TAX FREE, TO PAY HEALTH INSURANCE PREMIUMS.

OTHER SOURCES OF CASH: INSURANCE POLICY'S CASH VALUE; HOME EQUITY LINE OF CREDIT; IRA OR RETIREMENT ACCOUNTS

STEVE JESKEWITZ: "IF IT COMES DOWN TO SELLING YOUR HOUSE, YOUR CAR, YOU HAVE TO DO WHAT YOU HAVE TO DO."

AND HOPE THAT YOU FIND A JOB BEFORE THE MONEY RUNS OUT.

ILYCE GLINK, WGN NEWS

ANCHOR: YOU CAN FIND OUT MORE ABOUT YOUR FINANCES THIS WEEK AT FREE SEMINARS ACROSS THE CITY, SPONSORED BY THE FEDERAL RESERVE BANK OF CHICAGO.

WEDNESDAY'S FREE MONEY SEMINARS:

10 AM HANDLING YOUR FINANCES DURING UNEMPLOYMENT ADAMS CAREER CENTER, 200 WEST ADAMS STREET

11 AM AVOIDING FRAUDS AND SCAMS SULZER REGIONAL LIBRARY 4455 N LINCOLN AVE.

NOON: HOME BUYING SEMINAR NORTHERN TRUST, 181 WEST MADISON STREET, 7TH FLOOR

6 PM COMMUNITY FINANCE FAIR LITTLE VILLAGE BOYS AND GIRLS CLUB, 2801 S RIDGEWAY

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