Every single one of us is feeling the impacts of our economy slowing down. Everything is getting more expensive. Salaries are not increasing fast enough. And, it’s getting more and more difficult to maintain a small business nowadays. Shockingly enough, even big corporations are struggling to keep their success during these hard times. There are obvious factors causing this economic struggle. The fact that we’re still in the middle of a global pandemic is bound to mess with people’s livelihoods.

Obviously, Covid-19 led to the country’s shutdown for the first couple of years. We’re not just talking about people having to stay at home and maintain social distance. The more significant impact was all the businesses that had to shut down due to the lack of resources. Obviously, customers not visiting these businesses had a huge impact on their success. But, also, there’s a lack of resources due to global logistical problems attributed to the pandemic.

Nowadays, you can add other factors to the list of things that are causing this economic recession. The fact that the world is dealing with numerous political issues sure doesn’t help.

How That Affects The Average Joe

We already talked about how everything is getting more expensive every day. That stuff includes food, rent, insurance policies, health care, and the list goes on and on. On top of that, plenty of people have lost their jobs due to businesses losing money. We’re here to discuss the solutions you could look into if you’re unemployed.

We’ll look into how the government could help you out during these hard times. Besides that, we’ll talk about how you could help yourself stay financially above the water. Some of these solutions will include how you can get yourself more money on the side.  Other solutions will include how you should budget your spending. The whole idea is for you to have money for necessities such as housing and food. But, hopefully, with these solutions, you’ll also have money saved up for a rainy day.

How The Government Can Help You Out

Since the government is the one in charge of the economy and the general financial state of the country, you might wonder what they do to help ordinary people out. If we have to pay taxes regularly and obey their rules, will they help us out when we need them? The answer is yes.

So, there’s this section of the federal government called the Department Of Labor. Those guys created a program called Unemployment Insurance. The program aims to “provide unemployment benefits to eligible workers who become unemployed through no fault of their own and meet certain other eligibility requirements.”

You’ve probably heard of the program under the names “unemployment benefits” or “unemployment checks.” Basically, the government will help you out with some cash if you’re unemployed. But, to get those checks, you must satisfy certain requirements. So, let’s talk about those requirements, shall we?

Who The Government Aims To Help With Unemployment Insurance

Earlier, we mentioned how the government is using this program to help people who are unemployed due to no fault of their own. But, what does that actually mean? Well, for example, if your previous employer shuts down the company, or lays employees off, that’s not your fault. Another example is if you lost your job due to a physical/mental illness, programs such as unemployment insurance, Social Security Disability Income (SSDI), and Supplemental Security Income (SSI) can help you out.

However, when applying for any government assistance, you need to meet certain qualifications. If you’re not eligible for a program, applying for it would be a total waste of time and effort. The federal government created the Unemployment Insurance program, but state governments run it. That can result in differences in requirements and even benefits for people living in different states. However, here’s a general list of qualifications you need to meet for Unemployment Insurance:

• To qualify for unemployment benefits, you must have lost your previous job without it being your fault. That means you can claim unemployment benefits only if there’s no work available for you.
• There are certain work and wage requirements that you must satisfy. You have to meet the minimum wage earned and/or time worked standards. In most states, you’ll need to have worked for the past 12 out of 15 past months at the time you’re applying for the benefits.

Different states may require other qualifications. Make sure to check out this website for more information on applying.

Unemployment Insurance Application Process

Compared to many other government assistance programs, the application process for Unemployment Insurance is pretty easy. One thing you should keep in mind is that you need to provide truthful and accurate information. Don’t bother providing false information while applying. They’ll most likely catch your lie, and that will either delay your application or disqualify you from the program.

1. You’ll need to contact your state’s unemployment insurance program.
2. Make sure to apply for unemployment in the state where you worked. If you now live in a different state from the one where you worked or worked in different states, your current state’s unemployment agency can guide you to apply for the benefits in different states.
3. When you apply for unemployment benefits, you’ll have to answer questions regarding your previous employment. That information will include addresses and dates for your previous occupation. Make sure to answer all questions accurately to avoid any delays.
4. If your application goes smoothly, you can expect to receive your first unemployment insurance check two to three weeks after applying.

A Few More Things You Should Know About Unemployment Insurance

Something About Taxes

You might think to yourself “I’m unemployed, and I’m getting financial assistance from the government. I don’t need to pay taxes.” That is, unfortunately, not true. The government counts these unemployment checks as a form of income. That means you’ll most likely need to pay a bit of money back to the government in the form of taxes.

You need to report your unemployment benefits when filing your taxes. You do have the option to withhold 10% of your benefits for tax purposes, but you don’t have to do that. As a matter of fact, experts advise against it unless you’re sure you can live off the rest of the money. However, if you think it would work out for you, then you should fill in the IRS Form W-4V.

Something About Applying Again

Let’s assume your unemployment insurance application goes through and you receive your first unemployment check. Now, you need to file for unemployment every time you want to get that check. You should also keep a work log. To receive your benefits, you must prove you’re looking for jobs. That doesn’t just help with your claim, but can also help you find a new job. Your work log must contain at least three different attempts at finding jobs. If you fail to prove you’re looking for jobs, you might not be able to get your unemployment benefits.

Something About Getting More Unemployment Checks

As you can probably tell, the government doesn’t aim to give you these checks forever. Eventually, the government expects you to find a job and make your own income. However, if you need them for longer, you may be able to apply for an extension. The extended period will vary from one state to the other. Some states will offer a 13-week extension, while others will offer a 26-week extension. But, even that comes with a shortlist of qualifications:

• You already finished your regular unemployment benefits
• You’re still out of a job, but also still looking for one
• Your state has a high unemployment rate

Steps You Should Take When On Unemployment Checks

This is where we’ll start talking about some steps you should take to make more use of your money. It is nice to get money from the government and not have to work for it (technically, since you have to actively look for a job in the meanwhile). However, these checks are supposed to help you cover the bare necessities in your life. Don’t expect to receive checks from the government that will finance a lavish lifestyle. To have a better financial situation, you’ll have to work on it yourself. So, let’s take a look at some of these steps.

Get A Job

This might sound like we’re being sarcastic, but we promise we’re not. As we’ve already mentioned, unemployment checks will help you cover your bare minimum. Since these checks won’t last you forever anyway, you need to work on increasing your income as soon as possible. We realize that we talked earlier about how the pandemic and political conflicts caused unemployment to rise. But, that doesn’t mean that there aren’t any jobs at all. In some cases, you may find jobs that pay a little less than what you’d like. Those jobs may end up being the start of a very successful and lucrative career. If not, they’re still better than receiving a bare minimum income to just put food on the table.

Curb Your Spending

If you’ve been unemployed for a while, lacking income or spare money, you might find yourself getting too excited about finally getting some cash. Some people out there will take some of that money and blow it all on unnecessary things. However, when you’re receiving unemployment checks, it immediately implies that you’re strapped on cash. That means whatever money you’re receiving should go first towards your necessities. Your list of necessities should include shelter, food, and healthcare. All of these things are not just one person, but in some cases might include entire families’ needs.

Spending your unemployment checks on things such as alcohol and drugs would lead you nowhere useful. If anything, these substances will most likely slow down whatever progress you’re trying to make in life. Besides that, forget about name brands. When you’re focusing on staying financially afloat, you have no one to impress. Focus on covering the basics. Need food? Just get generic goods, forget WholeFoods. Need clothes? Walmart clothes are just fine. Need a new phone? iPhones won’t help your financial situation.

Some Of Your Bills Can Wait

A lot of stuff we buy, we buy through debt. If someone is buying a new place, they have mortgage debts. If someone goes to school, they most likely have college debt. The same goes for a car, you’d probably apply for an auto loan. This may surprise you, but Americans owe more than $1.4 trillion in auto loans and over $1.5 trillion in student loans.

Obviously, lenders, most specifically banks, want to get their money back. However, a lot of borrowers don’t have the ability to pay all of it back right away. Many of us might not even be able to pay back our loans in the scheme we originally agreed upon. But, since banks want their money back, they’re willing to find ways to help you pay your loans back.

What we’re saying is that if you have a loan that you need to pay back, talk to your bank. Being on unemployment checks is a good excuse for you to ask your bank to renegotiate your agreement. You might be surprised by how flexible banks can be regarding repayment plans. After all, it’s better for them than not getting the money back at all.