by Raffi Varoujian

Created on: September 03, 2010   Last Updated: September 19, 2010

Being unemployed can be a demoralising experience. However, it does give you a lot of time - a valuable commodity that is not always available when you are in work. Accordingly, unemployment can give you the chance to spring clean both your finances and your house, saving you money not only for the period you are out of work, but also setting you fair for when you’re employed again.

Review Your Finances

Gather all of your credit card and bank statements and find out how much money you have and what your monthly outgoings are. Once you know what you are spending your money on, it will be easier to gauge where you can make cuts to make the money you do have go further. Utility bills are often neglected, so now is the time to find out if you can get a better deal from competitors, or at least force your current provider to renegotiate their own offering. If you are paying for gas or electricity on a monthly budget scheme, make sure you’re not overpaying and claim back any amount that may be to your credit. Some providers will stop taking payments and apply your credit against future bills, freeing up your cash for other expenses.

Likewise, audit your car insurance, home contents policy and any other policies you may have to make sure you are still getting a good deal. Also, little things, like making sure unused appliances are turned off (rather than left on standby) and chargers are unplugged from sockets will save you money in the longer term.  Speaking of chargers? Do you really need to be on an expensive mobile phone package or can you afford to scale back? Call your provider and see what they can do, especially if you are out of your promotional contract period.

Grocery Bills

We all have to eat, but changing your shopping habits is an easy way to save money. Supermarkets have shelves full of no frills or own-label products, many of which are just as good as their branded equivalents. By trading down one just one rung on the “product ladder” you can easily save 20% to 30% on your weekly shopping bill. We also tend to waste a great deal of food, so try to be more aware, especially when buying fresh fruit and vegetables (which tend to be expensive) of how they are going to be used. Plan a menu for the week and shop for the ingredients so you are only buying what you need.

Entertainment

Taking a family of four to the movies (even without the candy and popcorn) is an expensive business. Watching a DVD at home is not quite the same, but it is a lot cheaper. On the same theme, eating out at restaurants, frequenting coffee shops and getting take-out meals are luxuries when you’re not earning and should be treated as such. Some families spend a significant amount on cable or satellite TV subscriptions. Now may be a good time to scale back your channel package to save some money in the short term.

Spring Clean

The emergence and success of sites such as eBay, Freecycle, greenmetropolis, readitswapit , musicmagpie and Gumtree have made it much easier to sell and trade unwanted goods. All of these sites give you the opportunity to either make money or exchange unwanted goods for things you want or need – all from the comfort of your own home. A garage or yard sale can also be a good way to de-clutter and raise some quick cash.

In short, its all about taking stock and making the most of what you have. It also keeps you busy while you look for the next job. The benefits of your hard work while you are off work will stand you in good stead when you eventually get back in to work.

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