No matter how you lost your job, whether your plant closed, your business relocated to another country, or you were laid off, forced to resign or if you were fired directly, being unemployed is a nerve-racking place to be. Hopefully you have an emergency fund in place that can support your budget for at least a few months. It is interesting how the conventional wisdom on emergency funds has changed just in the past few years. Some 5 years ago, financial planners often recommended a three month emergency fund. Then six months became more a must, and now, it is prudent to look at having nine or ten month’s budget saved up for the event of job loss. With people are taking longer and longer to find work, it sounds reasonable enough.

Cutting back on expenses is perhaps the best way to stretch whatever emergency fund you have left, avoid debt or even dig yourself out of debt if you already owe large amounts of money. Even if you are fortunate enough to have a healthy emergency fund on hand, an unemployed person needs to reduce expenses as much as possible in order to keep the ship right-side up. Here are some suggestions of where you can cut or shave your budget to reduce spending and make that emergency fund last as long as possible:

Energy costs. During winter, there is not much you have than to heat your home, however, you could turn the thermostat down a couple of degrees and maybe go to bed earlier in order to limit energy usage in terms of both heating and electrical power. It is during summer where you have greater possibility to reduce energy costs: from your air conditioning. I know it sounds painful, and so uncomfortable, but we all grew up without air conditioning, even in very humid locales. Our parents and grandparents proved that a lack of air conditioning will not kill anyone. Depending on where you live and the size of your house, turning off the AC might reduce your energy bill anywhere from $50 to $200 a month. Just imagine what you can do with $200. That can pay off your credit card minimum, buy your groceries, and set aside a little for emergency. Opt to take cooler and shorter showers. That saves both water and electricity versus turning on the hot water. For recreation, spend more time keeping the television off and playing card or board games with your family, or perhaps read by the window during the day instead of switching on another lightbulb.

Food. I have always said we should never be a slave to saving. But I have to include food int his list as this is one heavy-hitter in the budget. You don’t have to starve to pocket some savings. Instead, you should change a little of your lifestyle to make ends meet. No more dine-outs, even to cheap fast foods. You have had your days when you were regularly picking up your paycheck. But remember, times have changed. Buy groceries, grow vegetables and even consider limiting your food intake if you were planning to go on a diet for a while now – - – look at this as your big opportunity. Most of us eat too much anyway. Stop throwing away your left-overs. They can be a brand new dish for dinner. There are plenty of 5-minute online recipes that teach you how to recycle left overs.

Cable television. Is your cable package watched enough to justify its expense? Most likely the answer to that question will be no. Though many of us have the habit of considering cable or satellite television to be a necessary utility, very few realize that he is paying a big sum of money for several hundreds of channels, of which, only one or two really appeal to him. As a sports fan, news junkie and documentary consumer, I sympathize. But if you are unemployed and still subscribing to cable or satellite . . . you have a problem. Sounds brutal? Yes. But if you want to survive your jobless days, you have to think hard. In case you really can’t do away with cable altogether, try a package that gives you less channels and costs less each month.

Mobile Phone Bills. This is another expense that would be difficult to completely eliminate. You might want to consider reducing the number of lines in your plan or inviting a friend or family member to join your family plan in order to share and reduce costs. Having a cell phone and a regular land line is a luxury people are discovering they may not need. More and more people are doing away with their home phones. With the use of internet, you can also make comparisons between the plans offered by different service providers. Get the plan you only need.

Internet. To be honest, I would not cancel internet service if I lost my job. I think it is essential to modern day job hunting and the internet can help you shop for the best deals on the few purchases that you might need to make even while unemployed. With the many opportunities to make money online today, broadband internet more than pays for itself. There are some things that one might do to reduce the cost of internet – request permission to piggy-back on your neighbor’s wifi or use the wireless internet at a restaurant or coffee shop down the street.

Other Entertainment and Hobbies. Face it, you don’t have a job now. I guess it’s time for you to accpe the need to cancel unnecessary subscriptions you’ve been holding too long but you don’t really need. Magazines, fitness clubs and paid newsletters are just among the many. Lots of people have a membership to a gym that they never use. But even if you go on a regular basis this is one luxury you can really do without altogether. There are plenty of free ways to get your exercise if you just take a little time to think about it. Take a walk in the park or buy some weights and exercise at home.

Most people spend almost $300.00 per month just on phones, Internet, and satellite. I know some people spend even more than that. Sit down and put all these expenses to a list. Add the amount you’ve been throwing away on your hobbies and subscriptions. That list will be your eye opener. Just imagine how many hundreds you can save each month if you are willing to let go of the things you thought you’d die without.

Also, if a purchase can be delayed, delay it. If you can walk or ride your bike, do it. If you do not need new clothes or you can get those clothes at a second-hand shop, do not buy them retail. Desperate times call for desperate measures – no luxury is so important that it cannot be put on hold for a bit, especially that you have no paycheck to look forward to. Hopefully, this event will not happen to you and your family.  But in case it does, it is always wise to have a plan in mind. Read more of Save.net’s future posts!