It is a complex set of logistics that build up when you lose your job or are being made redundant. There is a grim emotional stand-still feeling on one hand. On the other hand, there is the anxiety to claim all benefits. While there is the fear of the unknown about what will happen in future, how bills and debts will be paid, how budget will be rescheduled, reallocated and managed and how much time will elapse before you get a new job, whether the new job will demand some ugly adjustments, etc.
lost job
Importance of exploring insurance and other benefits, and any other assistance:
Apart from getting mental respite, arrangement of finances is the biggest concern when you lose your job. All your efforts should be concentrated in this direction. For this it is in your interest to know all available options to garner finances, benefits, insurance and other assistance. These options include:

I. Exploring and making optimum utilization of unemployment benefits
Unemployment benefits are available to almost all employees. In fact, if you have lost your job for no fault of your own, you qualify to get unemployment benefits. This is as per the federal/ state unemployment compensation program. As per this program all employees or workers with salary or wages are eligible to get unemployment benefits if their job loss is not attributable to any of their faults. There may be difference in the amount from state to state. But basically, your unemployment benefit is determined based on your last earned salaries.
The duration of unemployment benefits in most states is 26 weeks.  However, to deal with economic and financial crises, these benefits have been enhanced under the Emergency Unemployment Compensation (EUC) and the Extended Benefits (EB). You need to know all these provisions to make the best out of them.

II. Retirement savings utilization; Cashing out on 401(k) account- risks involved and options available
On being rendered jobless, the most irresistible first option to get a financial padding is the ever tempting 401(k) account. In dire circumstances, you may opt for cashing out your 401 (k). But critics and experts say this should not be your first option because of the taxes and penalties involved. Your employer will withhold 20% of the amount for tax payments. Not just this, you also have to pay a 10% penalty on early distribution unless you are of the age of 55 years or more. This 10% is calculated on the entire withdrawal amount before deducting taxes. Also, your unemployment benefits will be reduced in proportion to retirement account withdrawals. So, you may end up getting much less than what you expected.

III. Other options available on retirement account
To avoid the series of taxes and penalties which will anyway be a huge drain in your finances, especially when you have lost your job, one option is to plan a rollover to an IRA or any other qualified retirement benefit plan.

IV. Other forms of assistance to aid you post job loss
These may be in the form of tax benefits which can vary from tax credits to qualified dividends rate, etc.

In this way, post losing your job, each penny should be taken care of and garnered from as many resources following intelligent research.

How to Live a Frugal Life

Some people wonder what frugality is. For those who do not know, frugality is a philosophy of life, which preaches that you can live with the smallest. In other words, spend only what you need, and save resources as much as possible. Many people have, however, continued asking questions regarding the difference between frugality and stinginess. Does being frugal mean being stingy? Can one become rich by following a lifestyle of frugality?
Importantly, like all other philosophies of life, frugality has its pros and cons, depending on the perspective from which it is analyzed. It is therefore not possible to say that being frugal is going to improve your life, or will ruin it.

Why you should live a life of frugality

There are a number of reasons to live frugally even when you don’t have to. Frugality is intended as such to provide a behavioral alternative to consumerism, and thus improve the lifestyle of people. When you are frugal, you are able to optmize your resources of any kind (money, time …) so that you control your mind and control avoid spending those resources on the unnecessary. Frugality itself can reduce the possible impact of a financial crisis and significantly increase your knowledge about money. It makes you smarter when making decisions for distribution.

The downsides of frugality

Frugality can sometimes lead us down the wrong path. It all depends on how you apply it to your life. In this the next paragraph, I would like to give you some tips that you take you out the most of frugality.

- Living with enough: Living with enough no means always tight, not splurging. By contrast, living with enough excludes only those expenses which are considered really unnecessary. For example, if you do not eat enough, you will not be satisfied, and therefore you would not want to be frugal. If, however, you think you have enough food, but still feel the desire to eat more, just for free from pressures and anxieties, then frugality can help.

- The same applies to money: The issue is not live bitterly without enjoyment for not being able to use the money. It is on the contrary, be smart to use it.

- Earn more, spend less: The monetary prosperity is the relationship between our profits and our expenses. If we earn more than we spend, then we have some prosperity. That is, you increase your prosperity through frugal living. Whether you increase your income and your expenses remain constant, it is the same as decreasing your expenses and your incomes remaining constant. If it is difficult or complicated for you to increase your profits, you can begin to reduce your expenses. On the contrary, if it is difficult for you to reduce your expenses, you should consider making additional income. Remember that money is easy to make but difficult to maintain.


Frugality does not have to be any impediment in achieving your dreams and for any reason will alienate abundance. We know that many people known to be influential in monetary terms live a life of frugality. It is important for you to follow the philosophy of frugality in your life as a way to success.