Ten tips

By LAURA T. COFFEY

© St. Petersburg Times, published January 21, 2001

Cleaning out your desk doesn't have to clean out your wallet

For many, a bout of unemployment can be traumatic personally and financially, but it also can lead to a host of unexpected opportunities. Consider these tips on how to safeguard your financial well-being during your time off from Myvesta.org, a non-profit, Internet-based financial counseling agency.

1. Visit the unemployment office. While collecting unemployment insurance may seem humiliating, you're entitled to that assistance because you've been paying your taxes.

2. Devise a spending plan. Tally up your income and your expenses. Doing so will help you determine where you can cut back.

3. Contact your creditors. Talk to your lenders about coming up with a temporarily reduced payment plan that will tide you over until you find another job. Your lenders are likely to cooperate because missed payments aren't good for anyone involved.

4. Avoid relying on credit. While paying your bills with credit may seem like a logical option during this time of emergency, it's not. Tighten your belt instead. Doing so can save you from severe financial hardship and possibly bankruptcy if it takes you longer than anticipated to find a job.

5. Use your savings. Dipping into savings is better than taking out a loan. Using money from savings costs you only the interest you would have earned and saves you from paying a high interest rate on a loan.

6. Downsize. This can be a good time to get rid of things you don't really need and put some cash in your pocket at the same time by having a yard sale. Consider whether you can sell any antiques or collectibles that have substantial value.

7. Invest more conservatively. Cut back on how much money you invest, and consider putting your money in less risky, low-yield investments. This will help shield you from dips in the markets that are easier to weather when you're working.

8. Take a part-time job. A part-time or temporary job will not only provide you with some extra income, it also will put you in contact with employers who might be looking to fill vacant positions.

9. Go your own way. Consider turning what you do for a living into your own business.

10. Retire early. If your employer is forcing you into early retirement, you may find that your retirement benefits will allow you to do the things you always wanted to do. This could be an opportunity for you to embark on a second career or take classes at a nearby community college or university.

- Source: Myvesta.org (www.myvesta.org, 800-680-3328)

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