The ongoing COVID-19 pandemic has had an extremely negative effect on the economy, and has had an especially disruptive impact on the job market. Indeed, millions of people have lost their jobs over the past few months, and the current unemployment rate has not been seen in many decades. Because of the economic climate, many people are currently hunting for jobs, but it can be difficult to search for jobs while saving money, especially if you have student loans. Nevertheless, saving money while searching for jobs is more achievable if you keep some things in mind.
It should be noted that this website has already discussed some of the strategies student debt borrowers should pursue after they get laid off. Indeed, I was laid off from a job during the height of my student debt saga, and I followed a few tactics to ensure that I was able to contend with this situation while pursuing my financial goals. However, given the present economic climate, saving money while searching for jobs is particularly important.
Saving money while searching for jobs is easier said than done, since job applicants sometimes need to travel and pay transportation costs in order to interview for a job. Some people also pay to have their resumes professionally written so that they can purportedly stand out in the job market. It is important to reduce such expenses whenever possible.
For instance, during the height of my student debt saga, when I was searching for jobs, I took interviews in locations outside where I wanted to work. Even though I wished to remain in New York and New Jersey to practice law, I decided to interview for a law firm job in Philadelphia. I had not had many interviews at that point, and I was motivated to take interview offers and end my job search.
However, I had to pay several hundred dollars to travel to and from Philadelphia when applying for that job. I knew that there was a very small chance I could see myself in Philadelphia, and I eventually decided not to pursue job opportunities in that city. Looking back on it, I wish I had not spent the money traveling to and from Philadelphia in order to interview for that job so I could save more money that may have been devoted to student loans.
Another important thing to keep in mind when saving money while searching for jobs is to balance securing a job quickly with obtaining the right job. Looking for jobs is a frustrating process, and it oftentimes comes with trepidation, uncertainty, and perhaps (usually unjustifiably) a little shame. Many people may wish for the nightmare of a job search to end quickly so that they do not have to be in a transition period any longer.
When I was laid off, I had some trouble dealing with my situation. It is difficult to contend with a job loss, and student debt exacerbates emotional issues, since it is difficult to pay off student loans while paying living costs without a steady job. For this reason, I accepted the first job I was offered after being laid off. Although I am happy that I worked at this job, and I gained valuable experiences, I was paid less than half as much at this job than the position I held before being laid off.
Had I waited longer, and interviewed for additional jobs, I am fairly certain that I could have secured a position that would have paid me more money. An increase in salary could have made it easier for me to pay off my student loans and reach other financial goals. Of course, when you are receiving unemployment benefits, it is difficult to turn down work because this could disqualify you from continued benefits. Nevertheless, it is important to balance the need for immediate work with long-term financial goals and the possibility of a higher salary if you continue searching for jobs.
Another strategy to go about saving money while searching for jobs is to consider self-employment. As many commentators have already suggested, we currently live in the “gig economy” in which many people are able to work for themselves and earn money by performing tasks outside of a traditional work setting. Indeed, many of us likely know freelancers, per diem workers, and others who earn money on their own outside of a typical employment structure. So long as it does not disqualify you from unemployment benefits, it might make sense to take a crack at being a contributor to the “gig economy.”
In addition, depending on your field, it is possible to start your own business in the traditional sense. Indeed, I quit my job and started my own law firm about a year before the COVID-19 pandemic began to impact the United States. Self-employment has many benefits and allows me to be flexible with my time in ways not possible in a traditional job setting. Furthermore, depending on your client base, self-employment can provide better job security than a traditional employment environment, and I strongly encourage people to consider this option for employment.
In the end, saving money while searching for jobs is achievable if you keep some things in mind. And any money saved can be used to achieve financial goals such as paying off student debt.