--- title: A guide to managing your finances for the newly unemployed date: 2023-03-20T11:30:00-04:00 author: Karl Michael canonical_url: "https://grantthorntonlimited.ca/en/debt-help-resources/articles/a-guide-to-managing-your-finances-for-the-newly-unemployed" section: Articles --- [ Back to the hub ](https://grantthorntonlimited.ca/en/debt-help-resources/articles) # A guide to managing your finances for the newly unemployed Karl Michael CPA, CIRP, Licensed Insolvency Trustee ![Newly unemployed man sitting on sofa stressed about his financial situation](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/Web-image-square/_articleHero/6355/A-guide-to-managing-your-finances-for-those-recently-unemployed.webp) Karl Michael CPA, CIRP, Licensed Insolvency Trustee The unemployment rate in Canada continues to rise throughout 2024. For many, losing your job means more than losing your paycheque and benefits. Whether unexpected or not, you leave behind colleagues who have become friends, routines you’ve gotten used to, and stability. Making ends meet in our current economic climate can be a challenge with a steady job, let alone for those experiencing job loss. If you or your partner have recently experienced unemployment and are wondering what’s next for you financially, we’ve pulled together a step-by-step guide to managing your finances as newly unemployed. ## Step 1: Review your savings and create a budget Having a budget is always important, but it becomes critical after a loss of income. Unless your partner can support you both, your spending and saving habits will need to change. If you were the sole provider or live alone, you may need to make more drastic changes. Start by laying out your essential expenses, like housing, food, utilities, transportation, childcare, and medication. While doing this, consider non-essential expenses you can put on pause such as vacations, restaurant dining, paid entertainment, and hobby shopping. Once you have cut your budget down to necessary expenses only, then it’s time to check your savings and severance package to figure out how much money you have, if any, to bridge the gap between jobs. Using this new information, ask yourself: - How long can you cover your expenses? - Can you live off your severance for some time, or do you need to dip into your savings? - Will you need to apply for unemployment assistance? - Will you have to take on more debt to make ends meet? Mapping out your budget and expenses will help manage your financial stress by guiding your timeline for getting back to work. ## Step 2: Figure out how long it will take to find a new job [While the average length of unemployment in 2023 was 17.8 weeks](https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410034201), the amount of time an individual is unemployed will depend on a variety of factors such as location, job type, experience, and the labour market. One of the toughest parts of job searching is not knowing how long it will take. It’s important to remember that you have skills and talents new employers will be interested in. When you are ready to start looking, take an afternoon to self-reflect on your accomplishments, update your resume, research new positions, and network with potential employers. It’s also important to take time to get over any shock or grief from your past job and find a job that is the right fit for you. However, keep your unemployment budget (as outlined above) in mind, as the longer you wait, the more you may be required to dip into your savings or take on more debt. ## Step 3: Consider unemployment assistance Government assistance programs, such as Unemployment Insurance (EI) provide temporary income support to Canadians who are able to work but cannot find a job, due to a shortage of work, seasonal employment, or mass layoffs to name a few examples. EI will pay you a percentage of your previous income up to a certain amount. It is suggested you [apply for EI](https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/apply.html#h2.01) as soon as you stop working to ensure the benefits start as soon as possible. Delaying your claim for more than four weeks after your last pay may result in losing available assistance. ## Step 4: Know your options According to [the Office of the Superintendent of Bankruptcy Canada](https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/statistics-and-research/canadian-consumer-debtor-profile-2021), 48% of those who filed for insolvency in 2021 cited loss of income as their top reason for financial difficulty. A job loss can be the final straw for those with little to no savings, high debt, and/or unmanageable financial obligations. Losing your job is an emotional experience and a stressful one to face alone. Getting support from the right professional is important to help you understand your options. If you or your partner have lost your job and are struggling to meet your financial obligations, we are here to help. At Doane Grant Thornton, we offer judgment-free, 30-minute consultations to help you find the best path to debt freedom. [Book online](https://grantthorntonlimited.ca/en/get-in-touch/contact-us), or call us today at 1-844-4GT-DEBT to start your path to a brighter financial future. About the Author Karl Michael CPA, CIRP, Licensed Insolvency Trustee ## Latest articles [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/67684/assets-CP-square.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [What happens to your assets in a consumer proposal? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/65155/recreational-vehicle-square.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [### What happens to an RV, boat, or ATV loan if you file a consumer proposal or bankruptcy in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/63555/influencer-survey.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [### Influenced into debt: How social media impacts Canadians' finances ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) ## Subscribe to our newsletter Get tips and tools to help manage your finances and live debt free. \*I agree to receive communications from Doane Grant Thornton. I understand that I can unsubscribe at any time. ## **Take the first step** to debt freedom Speak to one of our debt solutions professionals during a free, no-obligation consultation. [ Book a free consultation ](https://grantthorntonlimited.ca/en/get-in-touch/contact-us) ## Related articles ![Marina filled with sailboats and recreational boats along the Charlottetown waterfront on a sunny day.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/65155/recreational-vehicle-square.webp) ### [ What happens to an RV, boat, or ATV loan if you file a consumer proposal or bankruptcy in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) For many Canadians, recreational vehicles offer freedom, adventure, and unforgettable family memories. 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