12 Things To Do If Unemployment Benefits Aren’t Enough

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Written By Andrew Miller

Unemployment benefits increased by $600 per week for up to four months for people out of work due to the coronavirus crisis. If you find the benefits you receive don’t quite cover all your expenses, you do have some additional options to make ends meet.  Check out the 12 ways to supplement your income below:

Take a penalty-free withdrawal from retirement accounts

The government is now allowing you to supplement your income with withdrawals from your retirement accounts. They are calling this “Coronavirus-Related Distributions.” If you’re a retiree or simply a person with a retirement plan, then this applies to you. Typically, if you are 59 ½ or younger, you incur a penalty of 10% on early withdrawals from your retirement account.  The CARES Act has since waived the penalty allowing you to take up to $100,000 from a retirement account without the 10% penalty.

Spread out your tax bill

If you take advantage of a penalty-free retirement plan withdrawal, you may still owe income taxes. However, now you can spread the payment of that tax over three years to reduce your tax liability for 2020. You could do this by dividing the Coronavirus-Related Distribution between your tax returns for 2020, 2021, and 2022.

Spend or save your stimulus rebate check

Currently, rebate payments are being distributed to taxpayers with income below a certain amount. There is nothing you need to do in order to receive this extra income. The IRS will use your relevant information from your 2018 or 2019 tax return to identify your income, direct deposit, and physical address. If your information has changed since then, it is important to update it as the IRS will use your most recent information on file to get the funds to you. Find out if you qualify and how to update your info here.

Apply for extended unemployment benefits

Many states are responsible for contacting you if you are eligible for extended benefits, however, given how busy state governments are,  there is no guarantee they will do so in a timely manner. Contact your state agency directly to find out if you will be receiving the additional 13 weeks of benefits.

Apply for a job with a company that’s immediately hiring

Here are a few we found:

 You can also check Indeed.com to search for jobs in your area.

Don’t overlook networking

You might be surprised how many people find jobs through their personal connections as opposed to filling out applications on job postings. Reach out to your friends, family, and other communities. Jobs often go unposted and are filled internally or through referrals before being listed publicly. Referrals can be very effective in getting people jobs as they’re far more personal than a cover letter.

Sell your belongings

If you need funds right away, selling your personal belongings may be a promising course of action. It probably won’t cover all of your expenses, but it may get you part of the way there. For clothing, consider sending your garments to Thredup and get a payout when they sell or drop off your gently used items at Clothes Mentor (but call ahead of time in case they are limiting intake for safety reasons) and they’ll pay you on-site for the items they want.

Regarding your electronics, sell that old cell phone and discarded tablet on Swappa, Glyde, or Gazelle.

Other places to post your items for sale are Facebook Marketplace, Craigslist, or eBay.

Reduce your big bills

Reach out to your credit card issuer, mortgage lender, or your landlord if you think you will be unable to pay a bill. Some creditors are making accommodations for people who are struggling during this time. Contact them to see if they are granting any concessions or accepting partial payments of bills.  Also, many insurance companies are waiving or reducing premium payments too.  Call your property and casualty or life insurance agent to see if this applies to you.

Adjust your budget

If you have not budgeted before, now is a good time to begin. It’s easy to create a budget for one month and then forget to revisit it later.  To avoid this, set an automatic reminder on your phone to compare your actual spending with your goal every week. This way, when you start approaching your limit, you can make a mental note not to spend more in that category.  You Need a Budget and Mint.com are both good resources for helping you track your spending.

Monetize a social media account

It’s no surprise that many people use their social media platforms to earn income. Although this likely won’t be developed overnight, unemployment might be a good opportunity to get started since it can often drag on for months. YouTube tutorials and Instagram personal blogs aren’t going anywhere anytime soon. If you have a hobby, skill, or routine, post a video of it online. Build up a following and get a sponsorship to review company products. 

Start a business

If you have always wanted to start a business, consider getting it off of the ground now. This Self-Employment Assistance Program pays aspiring business owners each week while they create their own jobs. This may seem counterintuitive but if you have a good idea, and a good emergency fund, now could be the time to take action.

Andrew Miller
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