The First Seven Things to Cut From Your Budget When You Lose Your Job

I’ve written before aboutthe steps you gotta take immediately after losing your job.

One of those is to assess your budgetbut what does that look like, exactly?

If you’ve never used a formal budget before,now is the time to start.

But if you already have a budget, how should you adapt it to your current situation?

Here’s how to evaluate your budget and make strategic cuts that will help extend your financial runway.

Calculate how many months of expenses you’re free to cover with existing resources.

Review your last three months of expenses to understand your spending patterns.

Categorize expenses as essential (housing, utilities, food) vs. non-essential.

Subscription services ($50-200+ monthly savings)

Review all recurring charges and cancel non-essential subscriptions.

Host potluck gatherings instead of going out.

Use free entertainment options (libraries, parks, community events).

Look for happy hour specials and restaurant deals when you do go out.

Consider temporarily suspending extra car insurance coverage.

Use public transportation when possible.

Combine errands to minimize trips.

Consider a prepaid plan.

Downgrade internet speed if possible.

Call providers to request temporary hardship rates.

Bill negotiation can workbecause companies have incentives to keep customers happy and retain business.

It costs more for them to acquire new customers than to keep existing ones.

Minimize utility costs:

Adjust thermostat tweaks.

Line-dry clothes when possible.

This cooling-off period allows you to reassess whether you truly need or want the item.

Pause credit card reward programs that cost annual fees.

Review and cancel unnecessary warranty services.

Consolidate accountsto avoid multiple maintenance fees.

While you’re focusing on reducing expenses, remember that this is a temporary situation.

Maintain a balance between aggressive cost-cutting andmaintaining your well-being.

I recommend starting with the easiest cuts first to build momentum.

From there, start to track every dollar to identify additional savings opportunities.

And for an even more stringent approach, check out ourguide to a minimally viable budget.