assistance

How to Prepare When Your Unemployment Is Ending

Denise Hill — Mon, 21 May 2018 08:31:21 +0000

Losing a job can be devastating. It can throw your life into a tailspin and severely delay or even kill your progress and plans for the future. Once you receive a little help through unemployment compensation, you may find yourself right back where you started when the benefit ends.

You may have been blindsided when you first lost your job, but losing unemployment before you've found a replacement job can also be a sucker-punch. As difficult as it all is, you still have to will yourself into being proactive. Here are a few things you should do to prepare for the end of unemployment compensation.

Begin with the end in mind

The best thing to do immediately after you receive your first unemployment check is to plan on not receiving it. It is a great aid that can help keep you afloat until you find work. But, you must keep the fact that it is only temporary in the forefront of your mind. During normal economic times, unemployment lasts 26 weeks, or six months. (See also: How Long Can You Really Live on Unemployment?)

Reduce your spending and live off as little as possible. And do your best not to depend on the benefit. The benefit itself makes this easier because it usually isn't enough to cover all of your living expenses. It is only assistance — similar to someone helping you up when you trip and fall. They help you to your feet. They don't carry you.

You have to find a way to cover the shortfall and generate your own income as quickly as possible. Put yourself on a shoestring budget. Establish spending and payment priorities, because some things may have to go unpaid. Call your creditors now and alert them to the situation and try to maintain a good relationship with them throughout the process. Downsize. Sell stuff. Get a side gig and do odd jobs. Unemployment can temporarily stop or at least slow the bleeding, but remember — it's only temporary. (See also: 5 Budget Overhaul Tricks for the Recently Unemployed)

Make getting a job your top priority

Job loss is so devastating because it is a loss — economically and emotionally. Dealing with the hurt, betrayal, and disappointment is a massive task by itself. Add to that coping with money issues and the instability it causes, and you've got a deep hole to climb out of. This can make looking for another job seem like a herculean effort. Try and view your unemployment compensation as a safety net and springboard. It helps ease the financial burden and it should propel you to action.

As the six-month period begins winding down, try adjusting your employment search to include jobs you wouldn't normally consider. Think outside the box. You may even have to get two jobs temporarily to help stay afloat. The closer you get to the benefit expiration date, the less picky you should become. Get training, attend job fairs, and leverage your networks and professional relationships to assist you during your hunt. You have to be aggressive, persistent, and diligent. (See also: 7 Networking Tips for the Recently Unemployed)

Get help

Federal and state-funded assistance programs are available specifically to help you through this period. Sadly, these programs' processes can be slow, bureaucratic, and inefficient, which is why it is imperative that you start the process ASAP. Benefits and programs vary by location, so be sure to check with your state's local agencies to understand requirements and procedures.

Supplemental Nutrition Assistance Program (SNAP)

Formerly known as the Food Stamp Program, SNAP provides food purchasing assistance to families in need. The amount you receive is based on your household size, income, and expenses. If you qualify, this could be a great way of ensuring your family is fed. It can also free up some cash enabling you to repurpose the grocery money and use it for another need. The benefit can be used at a host of traditional grocery stores, convenience stores, and even at your local farmers market.

Self-Employment Assistance Program (SEAP)

Have you ever heard the saying, "If you can't find a job, create one?" That's exactly what SEAP is designed to help you do. SEAP is a state-funded grant program specifically designed to train individuals receiving unemployment the basics of launching their own small business. And the best part about this program is that in most states, participants are not required to look for a job. The training program is your employment seeking activity. To find out if you qualify, check with your local unemployment office.

Housing assistance

If you foresee yourself struggling to pay rent or your mortgage, help is available. The Department of Housing and Urban Development (HUD) offers a number of rental assistance programs including the Housing Choice Voucher Program. This voucher program provides assistance by paying all or a portion of your rent, if you qualify. Most states also have some sort of Emergency Rental Assistance Program which provides short-term, income-based assistance. And the federal government offers assistance to those in rural areas through its Rural Rental Assistance Program.

If you are struggling to make mortgage payments, the Federal Trade Commission offers protection for distressed homeowners from predatory and unscrupulous lending practices. There are a lot of private and nonprofit agencies that can help you refinance, negotiate a short sale, and/or keep your home if you fall behind. The key is to do your research. Understand what you are signing. And don't make decisions out of fear or under pressure. You have options. Breathe, consult an objective expert, and move forward with what works best for your situation.

Nonprofit and social service agencies

Every state has a different suite of services and resource offerings for those in need. Finding those resources can be difficult — especially when you don't know where to look. 211.org was established to address this need. It is a repository of information containing resource offerings for every state and parts of Canada. It is a free service that can help you find federal, state, local, nonprofit, and (small) fee-for-service assistance. It doesn't matter if you get help from family and friends, your church, or a federal or state source, as long as you get help.

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This article is from Denise Hill of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Ways the Government Helps Disaster Victims Recover

Christa Avampato — Fri, 22 Sep 2017 09:00:06 +0000

Hurricane season has captured big chunks of recent news cycles, with massive storms Irma and Harvey devastating areas in Florida and Texas. The IRS and other U.S. government agencies are working to help people get back on their feet after these terrible natural disasters. Here's what they're doing.

1. Allowing loans and hardship withdrawals from retirement funds

Usually, the IRS levels penalties against early withdrawals from 401(k) and 403(b) retirement accounts. But it recently announced that in the case of Irma and Harvey, victims can take loans and hardship withdrawals against their retirement funds without penalties. All of the specifics for this IRS initiative can be found on the IRS disaster relief page.

2. Offering tax relief

The IRS provides tax relief to those who are impacted by disasters. This relief takes the form of tax filing and payment extensions, as well as the ability to claim losses on tax returns that may lower the amount of tax owed. Once an area is a federally declared disaster area, the IRS automatically marks all taxpayers in that area as eligible for relief. The details about these tax relief programs are also on the IRS's webpage for disaster relief.

3. Helping victims find shelter

If you need to find short-term shelter after a disaster, the government has services to help you. You can search for open shelters in your area by texting SHELTER and your ZIP code to 4FEMA (43362). For example: SHELTER 12345. You can also visit FEMA's page on Interim Housing if you've been displaced by a disaster and you need to find a longer-term rental home.

4. Granting government relief funds

DisasterAssistance.gov makes it possible to find local resources and apply for assistance. There are also relief funds and programs available for small businesses and those who are self-employed.

5. Hiring temporary recovery workers after a disaster

Both FEMA and the Small Business Administration (SBA) are currently hiring temporary workers in affected areas to speed the recovery efforts. FEMA's website details the opportunities it has available and SBA has set up a special website where you can apply for hurricane response jobs.

6. Cracking down on price gouging

After a natural disaster, it isn't unusual to find crucial necessities like gas and bottled water sold at ridiculously inflated prices — including reports of water for $99 a case and gas for $10 a gallon following Hurricane Harvey. This is known as price gouging, and it is illegal. People who have spotted or been victimized by this practice are encouraged to report it to their state attorney general.

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This article is from Christa Avampato of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Help Your Parents Retire

Emily Guy Birken — Tue, 12 Sep 2017 08:00:06 +0000

One of the toughest transitions into adulthood is when you realize that you need to help your parents instead of the other way around.

Add money into the mix, and that can make an already awkward transition feel even more uncomfortable. Money is often a taboo topic in families, and parents sometimes have trouble letting go of the idea that you are a child rather than someone who can help them with financial planning. It may feel easier to just assume Mom and Dad have everything covered for their financial future, and let the chips fall where they may.

But helping your parents prepare for retirement is one of the best gifts you can give the people who raised you. That's because even the most financially savvy planners may run into issues, questions, or problems that they are not sure how to handle. You can help your parents get ready for retirement, and grow closer in the process.

Here's what you need to know about helping your parents retire.

Prioritize your own retirement savings

Most parents know that it's smarter to save for retirement before putting money into the kids' college funds. After all, students can take out loans for school, but there are no loans for retirement. Adult children should prioritize retirement savings over paying for their parents' retirement needs.

It may seem strange to prioritize your own retirement as a part of helping your parents retire, but it's an important first step in financially protecting your entire family. Taking care of your parents' retirement instead of saving for your own means that you will simply be passing money problems from one generation to the next. By putting your own retirement savings first, you are teaching your kids how to responsibly plan for their own financial futures.

Being prepared to have your parents use their assets for as long as they last will also allow you to make the best use of programs like Medicaid, which requires long-term care recipients to have exhausted their own assets before it kicks in. Rather than exhaust your own finances, plan to protect your future retirement so your kids are not left with another tough decision in 30 years.

Introduce the initial conversation

To be able to help your parents retire, you need to know where they stand financially so you can best help them fill in the gaps and prepare for that major transition. If you're lucky, your parents have already looped you in on what they have saved, where it is, what plans they have for the future, and who they trust as their financial adviser to make the decisions. (See also: 6 Things You'll Encounter When Taking Over a Loved One's Finances)

Where it gets tricky is if your parents shut down any money conversations and change the subject to "something more pleasant." If you know your parents will not feel comfortable talking openly about their money planning with you, frame the conversation as an opportunity for you to learn together.

For instance, you might mention that you want to look over your 401(k) information and would love to chat with them about how they handle their retirement accounts. In addition, you could invite them to read a book with you about financial planning so you can use the information as a jumping off point for personal discussion.

Talk about the day-to-day details

Knowing where your parents hope to live and how they intend to spend their time in retirement will give you (and them) a baseline understanding of how much they will need in retirement. Encourage Mom and Dad to talk about how they want their lives to look in retirement. Do they want to stay in place, move closer to grandchildren, or sell everything and live in an RV?

In addition to helping you get a better sense of their financial needs in retirement, these conversations will also help your parents enjoy the anticipation of planning for retirement.

Learn more about Social Security and Medicare

While spending an afternoon navigating Social Security and Medicare's websites is no one's idea of fun, taking the time to determine your parents' eligibility for these programs can help you better understand what to expect from their government entitlements. You and your parents can check out the eligibility questionnaires at Medicare.gov and Benefits.gov to find out what benefits are available and whether your parents qualify.

Meet with a financial adviser

No one expects you (or your parents!) to know everything about the complexities of planning for retirement. Together with your parents, take the time to interview and hire a financial adviser to help with the details of building your parents' retirement.

A financial adviser is also in a good position to help your parents make sure their estate planning is up-to-snuff and that all of their accounts have properly named beneficiaries. Even if Mom and Dad are uncomfortable talking about these issues with you — who wants to think about their own deaths, after all? — having a trusted financial adviser can help make sure they have all the necessary estate planning paperwork in place.

Keep talking

If money conversations are uncomfortable, you might feel like having that single afternoon of financial planning with your parents is sufficient. But checking in with your parents regularly is an essential part of helping them prepare for retirement. This lets them know you are there to help them with any difficult issues or decisions.

Continuing the conversation can also help protect your parents against scams. According to a 2015 True Link Financial report on financial elder abuse, annual losses from elder fraud totaled over $36 billion. By staying connected with your parents and offering to help them with financial decisions, they will be less likely to fall victim to a predatory scammer because you will be there to help sniff out anything untoward.

Paying it back to Mom and Dad

Your parents took care of you throughout your childhood (and maybe a little into adulthood, too). Now it's your turn to look out for them. Give your parents the gift of some help with retirement planning, so they can relax and enjoy the end of their career and the beginning of the next phase of their lives.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The 7 Best and Worst Ways to Ask for Help

Sarah Winfrey — Thu, 02 Oct 2014 11:00:06 +0000

There's just no two ways about it: asking for help is hard.

Whether you're at work, at home, or with your friends. Even when you know that it's normal, that everyone has to do it, and that a highly-touted business skill (delegation) is only asking for help in disguise. It doesn't leave you with a good feeling. (See also: The 5 Best Ways to Work Smarter Not Harder)

So we're here to help by listing out some best (and worst) practices to employ when making a request of someone. And no, you don't have to ask.

What to Do When Asking for Help

First let's look at ways to make asking for help easier for you to accept and for your aide-giver to provide real assistance.

Understand Why You Need Help

Before you ask for aid, understand the problem well enough to know why you can't complete the task yourself. You will feel better about asking for help when you know that you aren't lazy, crazy, or stupid. Whether you need help because you don't yet have the right skills, you've been asked to do something outside your area of expertise, or you are exhausted for any reason, your need for help will make more sense to you.

When you know why you need help, you can also explain it to the person you're asking. This can help them feel better about helping you, because they know their aid is truly needed. If you need to defend asking for help, this can be an asset there, too.

Choose Whom to Ask

Most people are more than happy to help you out. It's true. Think about how you feel when asked to help someone. It's likely that you enjoy helping people, especially when they are asking you about areas of your expertise, and when they are respectful of your time and energy.

Find someone to ask who has some expertise in the area where you're struggling. Then, choose a time to present your request when they are not overly busy or stressed out. If you have to ask someone like your boss, try to ask them between projects or, at least, between meetings.

Knowing that people like to help and that the person you've asked is an expert in the field in which you need aid can give you the confidence to approach the meeting positively and confidently.

Have Something to Offer

Before you go asking for help, come up with a list of possible solutions to your problem. Even if they're a bit far fetched, having something to offer is many times better than having nothing. If you're very uncomfortable asking for help, or it feels threatening, you can even pose your question as "Which of these options seems best to you?" This allows your respondent to give an opinion or offer a solution of their own.

If you are really and truly stuck, at least bring a list of specific questions when you ask for help. This indicates that you've thought about the problem from multiple perspectives, and that you are fully engaged in finding a solution.

Ask for Something Specific

People are more likely to help you if you ask them for something specific. When you do this, you're letting people know exactly what you want from them, which lets them calculate how much time and energy it will take for them to help you.

Asking for something specific also allows you to demonstrate your understanding of the problem. When you know exactly what you need, you show that you understand the issue, even though you can't solve it yourself. This can help you feel better about asking for help and look better doing it, especially when you're asking for help in the workplace.

Things to Avoid When Asking for Help

Your request will go over much better if you avoid some simple mistakes.

Don't Be Insulting

There are a million ways to insult someone when you ask them for help. Whether you imply that they don't have anything better to do than solve your problems, or you make allegations that their mistake caused the problem in the first place, all insults make people less likely to help you and more likely to look down on you if they do.

If you aren't sure whether your request is insulting or not, just don't make it. If you must ask, run your request by a third party before you make it, so you can edit it, if necessary.

Avoid Rudeness

Be sure that you ask for help and don't demand it. In fact, bring out the big guns and use "please" and "thank you" in the process of making your request. This offers respect to the person you're asking, and it helps keep the panic away. (See also: The One Word You Need to Start Using Today to Have a Better Life)

Being polite helps both you and the other person to feel good about the conversation. And when people leave a conversation with you feeling good, they're more likely to help you and to continue to think well of you.

Quench Panic

Asking for help is different from asking someone else to take responsibility for you or your projects. People are more likely to help you and to feel positive about doing it when they know you aren't asking them to be responsible for your entire life.

This probably sounds like something you would never do, but when you're pushed to the point of needing to ask for help, you can also be in a panic. When you panic, it's easy to overstate your problem and make it bigger than it is. This can overwhelm the person you're asking, especially if they are busy or tired (and who isn't?)

It's also easy to give in to your fear and want to abdicate all responsibility for whatever is going wrong. When you get to the point of asking for help, it's often because you are getting pretty desperate for a solution. This desperation can push you towards wanting to give up entirely, which would make someone else responsible for everything.

How do you feel about asking for help? What do you do (or not do) to make the process easier?

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This article is from Sarah Winfrey of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

California First Lady Maria Shriver Talks to Us About Help for Families in Tough Times

Linsey Knerl — Wed, 11 Mar 2009 01:53:17 +0000

Working families all across the U.S. are feeling the tightening economy. “Day by day” is truly the only way to handle things, but did you also know that there is help? In addition to the numerous programs offered in California, the U.S. government and organizations are using WE Connect to help get Moms the information they need to take care of families. Here’s what Maria had to share with us….

What is We Connect?

"Maria Shriver’s WE Connect campaign is a pioneering public/private partnership designed to help California’s working families become more financially secure by connecting them to important programs and resources. Several of these programs, such as the Earned Income Tax Credit (EITC), are available and accessible to working families but many are not taking full advantage of them. This leaves over a billion dollars on the table each year that could have been used by working families right here in California. This statewide effort will connect families with the information and tools they need to take full advantage of these valuable resources, empowering them to live their dreams."

What does this mean for California families? According the Ms. Shriver (whom we spoke with during a Mommy Blogger press call this afternoon), there’s an opportunity for more families to get the help they need. Whether they need food assistance, child care, or just want to get their taxes done well and affordably, WE Connect can lead them in the right direction. Check out their Top 10 Tips for Families (which lists the best resources available.)

What about the self-employed? I had the chance to ask Maria just that, as more and more small businesses and self-employed Moms and Dads are struggling to find information on services and tax reliefs that would normally be provided by employers. Maria shared her insight on how to take the first steps toward getting connected with valuable resources available to Californians. That step was to access the WE Connect site on your own. (She noted that even those who are traditionally-employed may not be getting much information directly from their employers.)

The WE connect website (www.WEConnect.net) is a one-stop shopping center that highlights all the programs that would be available to self-employed families (as well as traditionally-employed workers.) Heating assistance, Golden State Advantage Cards, Lifeline Telephone Service, and 529 plans (plus many more programs) are all explained in detail at the site, and there will soon be an option to apply for services directly online.

Women and children make up over half of the nation’s poor, and Ms. Shriver wants them to know that there are ways to get the help they need. “There’s no shame in asking,” she notes -- Especially if it “can make a difference in a child’s life.”

Working Californians are encouraged to visit the WEConnect website to find out more about the services offered.

Those outside of California can access their state and local social services by accessing the listing of state websites. Federal poverty guidelines are available to the public (with variances for Alaska and Hawaii), and you can learn if you are eligible for benefits before you apply by using this handy Federal Benefits Calculator.

This article is from Linsey Knerl of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Should You be Ashamed to be on Public Assistance?

Linsey Knerl — Mon, 04 Feb 2008 03:13:34 +0000

Growing up in a poor home, I had no idea what food stamps were. The food bank was rarely utilized for fear of being judged as a drain on society. Everyone in our community “knew” that a real man couldn’t let his kids eat food that had been purchased by the U.S. government. Similarly, welfare programs were for folks who were lazy, stupid, or both.

Our family, and other local farmers, had no problem using agricultural subsidies, however. As a society, we grew up with the dream of getting college degrees, and we took full advantage of Pell grants and government-funded scholarships. Many of the activities we participated in ran on grants and endowments from our local and state governments. We felt secure in a future of social security checks and a competent Medicare program.

What exactly is wrong with America? Having been on both ends of the “hand-out” fence, I can tell you that it’s a conundrum I haven’t quite figured out. I worked as a clerk in our local Social Service office the same year we applied for assistance for the first time. I was shocked to hear even the workers grumble with disgust at serving the needy community. I was never more relieved than the day we reported to our caseworker that my husband had gotten a great job, and we would no longer be needing assistance. Getting a little help with food and heat had been perfectly legal, but somehow I felt so guilty.

Government programs are directly used by the majority of Americans, and I can almost guarantee you that you will use a Social Service at least once before you die. These programs are funded by each and every working American. They are designed to be used by by those same people -- just like Pell Grants, state-funded unemployment, and that tax rebate you may be receiving later in the year.

So what’s with the stigma of food stamps, welfare, and other programs commonly associated with the lowest of the low? Our federal government wants us to use these services. So much, in fact, that it is considering renaming the food stamp program the “Food and Nutrition Program” to relieve some of the shame that accompanies participation. College students are being encouraged to qualify for food assistance as an alternative to an often inadequate diet.

Sure, there are abuses to the programs, folks who just don’t try, and a barrage of cases where it just doesn’t help much anyway. There are also families who have been helped – families who needed a little more time to get on their feet. These people used their resources to the best of their abilities. They cut coupons, shopped sale ads, and managed portions of healthy foods to be sure that their “food stamps” were put to the best use. They went to bed with full stomachs and hope for tomorrow.

Looking back on my childhood, I wish things could have been a little different. Maybe, if we had access to the slick-looking debit cards that the government currently provides food program participants (instead of the awful perforated coupons used back then), there wouldn’t have been as much shame. Perhaps if people had been more honest about the cycle of money in this country, we all could have seen it as an opportunity and not a “hand-out.”

Let’s be honest about our world and avoid judging others. I’ve been there, and it’s not that bad! If you are having a hard time providing the basics for your family (including food, shelter, heat, or medical care), there is help. Visit GovBenefits.org for a complete listing of all the programs available in your state.

This article is from Linsey Knerl of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: