10 Things to do When Unemployed

Losing your job unexpectedly can be one of life’s most challenging and stressful experiences. The sudden loss of income and routine can leave you feeling overwhelmed and uncertain about your future. If you’re wondering what to do when unemployed, it’s important to remember this setback is only temporary. With a proactive approach, you can navigate this difficult time and come out stronger than before.

In this guide, we’ll cover 10 essential steps to help you process your emotions, manage your money, and prepare for the next chapter of your career. Let’s dive in and get you set up for success.

1. Process your feelings

There’s no getting around it: losing a job is tough. It’s okay to feel upset, scared, or even angry. Give yourself permission to work through those feelings before planning your next steps.

• Be kind to yourself: Sometimes job loss is out of your hands, so don’t beat yourself up over it. Treat yourself the way you’d support a close friend going through the same thing.  
• Talk it out: Don’t bottle up your feelings. Reach out to a trusted friend, family member, or therapist to process the situation and gain perspective.
• Find healthy outlets: Take time to go for a walk, do some yoga, or journal—whatever activities help you clear your head and find peace.

2. Review your finances

Once you’ve had some time to process, it’s time to take a hard look at your finances. Knowing where you stand is one of the first steps in figuring out what to do when unemployed.

• Check your savings: First, figure out how long your current savings can support you. This gives you a clear timeline for your job search and helps prioritize financial decisions.
• Understand your severance: If you received a severance package, know what it covers—like health insurance or payout for unused vacation days. Any benefits coming your way should be worked into your financial plan.
• Look into unemployment benefits: Check what benefits are available to you and apply as soon as possible. They can offer valuable support while you search for new opportunities.  

3. Create a new budget

With your income situation changing, you’ll have to make some tweaks to how you spend. A new budget will help you prioritize your needs and cut out what’s non-essential.

• Focus on the basics: Start with the essentials—housing, groceries, and bills come first. Everything else can wait.
• Cut back on the extras: Identify areas where you can reduce spending, like subscriptions, dining out, or entertainment. A few temporary cuts can make a big difference.
• Contact your lenders: If you have debts, check with your lenders about flexible repayment options. Some may offer deferment or reduced payments in times of financial hardship.
• Plan for surprises: If you can, build a small buffer into your budget for unexpected expenses. The peace of mind will be priceless in the event something comes up.

4. Get creative with income

While you’re on the job hunt, consider ways to bring in a little extra cash.

• Try freelancing: Platforms like Upwork and Fiverr offer a great way to earn money by using your existing skills.  
• Pick up a part-time job: If you’re open to it, part-time or temporary work can keep the lights on while you’re searching for a full-time role.
• Declutter your life: Selling things you no longer need can help you clear out space while putting a bit of extra cash in your pocket.  

5. Stick to a routine

When your schedule suddenly opens up, it’s easy to feel lost. Building a daily routine is one of the best ways to stay motivated when you’re figuring out what to do when unemployed.

• Get regular sleep: Try to maintain a consistent sleep schedule to keep your energy levels up. Aim for 7-9 hours each night.
• Plan your day: Treat your day like a workday—divide your time between job searching, skill-building, and self-care. Keep a checklist handy to stay on track.
• Create a workspace: Set up a dedicated area for job hunting and work tasks. Having a separate space for productivity and relaxation keeps the boundaries clear.
• Move your body: Exercising regularly is a great way to manage stress and stay healthy. Even a quick 15-minute walk or workout can do wonders.  

6. Upgrade your skillset

Think of this as an opportunity to level up and add some new skills to your resume.

• Explore online courses: Check out platforms like Coursera, LinkedIn Learning, and edX for affordable courses that can boost your skills and make you stand out in the job market.
• See what’s in demand: Browse job postings in your field to understand the most desirable skills. Focus on learning the ones that will give you a competitive edge.
• Stay current with virtual events: Many industries host free online workshops and webinars—take advantage to stay up to date with trends and make valuable connections.  

7. Leverage your network

Don’t underestimate the power of your connections. Your network can be a powerful tool when figuring out what to do when unemployed. People love helping others, but they need to know you’re looking first.

• Update your LinkedIn: Make sure your profile clearly shows you’re open to work and highlights your skills and experience.
• Reconnect with old contacts: Reach out to former coworkers, classmates, or colleagues. Let them know you’re job hunting—they might have leads or know of opportunities.
• Join professional groups: Look into joining industry-related groups, both online and in-person. They often have job boards, networking events, and career resources that can be helpful things to do when unemployed, and even after you find a new job.

8. Job hunt with a plan

Job hunting can feel like a full-time job in itself. To make the most of your time, you need a focused and strategic approach.

• Define your ideal role: Get crystal clear about the kind of job you want—think about the industry, position, and company culture that fits you best.  Start by applying to those roles, then, if necessary, expand your search to other opportunities.
• Tailor your resume: Customize your resume and cover letter to each job you apply to, highlighting the skills and experience that make you right for the role. It may feel like extra work, but it helps you stand out.
• Set daily goals: Stay motivated by setting daily job search targets. Whether it’s completing 3 applications or connecting with 1 new person in your network, having clear goals will keep you on track.  
• Search in multiple channels: Don’t just stick to online job boards. Tap into your network, contact recruiting agencies, and explore company websites to find hidden opportunities that might not be listed elsewhere.

9. Get ready to shine

When the interviews start rolling in, you’ll want to feel prepared and confident—and practice makes perfect. A little prep beforehand ensures you’re ready to show off your skills and personality.

• Do your homework: Take time to research the company, its culture, and the role you’re applying for. The more you know, the better you can tailor your answers and show them you’re genuinely interested.
• Practice your story: Think about common interview questions and rehearse your responses. Be ready to talk about your past experiences, what you’ve achieved, and how you handle tough situations.
• Have questions ready: Interviews are a 2-way street. Show you’re engaged by asking thoughtful questions about the company, team culture, and expectations for the role.

10. Take care of yourself

You can’t pour from an empty cup, so don’t forget to look out for priority number 1 during the time you’re unemployed. Keeping yourself in good shape mentally and physically will help you get through this.

• Eat and sleep well: Eating balanced meals and getting enough rest will keep your energy up, helping you stay focused as you navigate your job search.
• De-stress your way: Find what helps you unwind, whether it’s meditation, taking a walk, or binge-watching your favorite shows. Whatever works for you, make time for it.  
• Stay social: It’s easy to isolate when you’re feeling down, but keeping in touch with family and friends is key. Even a quick chat can lift your spirits, and who knows—someone might have the perfect job lead for you!

Conclusion

While losing a job is a daunting experience, it’s also an opportunity for growth, self-reflection, and even career advancement. Now that you understand what to do when unemployed, you can turn this challenge into a steppingstone toward a brighter future. Keep your head up, stay resilient, and remember—you’ve got this.

This article is for educational purposes only and is not intended to provide financial, tax or legal advice. You should consult a professional for specific advice. Best Egg is not responsible for the information contained in third-party sites cited or hyperlinked in this article. Best Egg is not responsible for, and does not provide or endorse third party products, services or other third-party content.