Unemployment And It's Effect On Personal Finance
Unemployment and it's effect on personal finances is something a lot of people are thinking about lately given the condition of many countries and businesses. Unemployment can mean several things: it can either be in reference to a person who does not work, a person who does not want to work, or it can more technically mean a person who wants to work but for whatever reason is not working. Economists focus on the percentage of unemployed people versus the percentage of employed people. In this way they can better grasp how a country is doing financially.
As it is understood by most people, the lower the unemployment rate, the higher the quality of life, the more jobs and choices available, and the higher the country's economic stability. It can also be an indicator of the way of life there--some countries have extremely high unemployment rates (from a Western standpoint) because women are not allowed to work.
Globally, the economy is not great. This is no surprise to anyone, since many people have been laid-off. People tend to scrimp and save as much as they can, which can end up being harder on a person's circumstances than if they spent. The logic for this is that if one person saves a lot, other people are doing the same. If enough people do it, there is not much money getting out to businesses. Businesses then have to lay off more people and it makes a circle hard to get out of.
Most people will lose their health care. It is important that you do not go without it. Surprise health problems can set you back thousands of dollars and make it difficult for you to ever get out of that hole. You have to weight the options: would you rather pay a few hundred dollars per month or would you rather have a surprise debt of twenty thousand dollars?
Something else to think about is job hunting and how long it will take you to find a job. When many people are looking for work, the harder it will be to get jobs worthy of your training. So while people are looking, they break into their savings. Their savings may not have even been enough to let them comfortably retire in the first place, but now it definitely will not be.
It is also hard for young people just out of school who do not have savings. They could lose their home or have to open a line of credit in order to pay simple bills. It can be a huge burden that could lay over a person's life for years. This often leads to legal issues (and fines) or great amounts of stress on one's health (and hospital bills).
The government can help a little with these things. You can use food stamps or welfare. The problem is that some people over-use and abuse these systems. It can seem like an easy way out to just live off the government and not work. It is only designed to help you in times of need and you are supposed to get off the system as soon as you are able. Sometimes it takes people a long time to utilize these systems and then it takes them a long time to get off the system. It takes a great deal of courage to do both.
Another option for people who are having a rough economic time is to go back to school. This should be encouraged, but only if it is carefully thought over. If a more specialized education will get you a better job and make you happy, it is definitely worth thought. You must make sure that you can afford your standard of living while going to school and you will be able to pay off the debts eventually. Remember that some companies will pay for you to get your education if it will support their business. - 16931
As it is understood by most people, the lower the unemployment rate, the higher the quality of life, the more jobs and choices available, and the higher the country's economic stability. It can also be an indicator of the way of life there--some countries have extremely high unemployment rates (from a Western standpoint) because women are not allowed to work.
Globally, the economy is not great. This is no surprise to anyone, since many people have been laid-off. People tend to scrimp and save as much as they can, which can end up being harder on a person's circumstances than if they spent. The logic for this is that if one person saves a lot, other people are doing the same. If enough people do it, there is not much money getting out to businesses. Businesses then have to lay off more people and it makes a circle hard to get out of.
Most people will lose their health care. It is important that you do not go without it. Surprise health problems can set you back thousands of dollars and make it difficult for you to ever get out of that hole. You have to weight the options: would you rather pay a few hundred dollars per month or would you rather have a surprise debt of twenty thousand dollars?
Something else to think about is job hunting and how long it will take you to find a job. When many people are looking for work, the harder it will be to get jobs worthy of your training. So while people are looking, they break into their savings. Their savings may not have even been enough to let them comfortably retire in the first place, but now it definitely will not be.
It is also hard for young people just out of school who do not have savings. They could lose their home or have to open a line of credit in order to pay simple bills. It can be a huge burden that could lay over a person's life for years. This often leads to legal issues (and fines) or great amounts of stress on one's health (and hospital bills).
The government can help a little with these things. You can use food stamps or welfare. The problem is that some people over-use and abuse these systems. It can seem like an easy way out to just live off the government and not work. It is only designed to help you in times of need and you are supposed to get off the system as soon as you are able. Sometimes it takes people a long time to utilize these systems and then it takes them a long time to get off the system. It takes a great deal of courage to do both.
Another option for people who are having a rough economic time is to go back to school. This should be encouraged, but only if it is carefully thought over. If a more specialized education will get you a better job and make you happy, it is definitely worth thought. You must make sure that you can afford your standard of living while going to school and you will be able to pay off the debts eventually. Remember that some companies will pay for you to get your education if it will support their business. - 16931
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posted by Edgar at
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