Prosperous Unemployment

Success!

2010-01-29T11:11:00.000-08:00

I finally secured a job after 13 months of unemployment! I will be taking a break from blogging during the duration of my employment (it's a 9-month contract). Good luck in finding a job!

Don't Stop Applying For Jobs

2010-01-26T23:33:00.000-08:00

It's easy to fall into the trap of getting complacent with your job hunt once you start getting interviews. You may decide to focus your energy on upcoming interviews and stop actively looking for other opportunities. This is not the right move! If you put a hold on your job hunt you could miss out on the job of your dreams! Keep searching and keep applying. Be relentless. You can't have too many interviews because if you are successful, you get the job, but if you aren't successful you still gain valuable interview experience.

I have a second interview lined up this week, another next week, and recruiters continuously contacting me. Yet I'm continuing my job search with vigor on a daily basis. If you follow this approach it will increase the probability of receiving job offers, in fact, you might even end up with multiple offers. This will put you in a strong negotiating position with your potential employers. And in this market, where the supply of labor exceeds demand, we need every advantage we can get!

Positive Quote Of The Week

2010-01-25T22:45:00.000-08:00

This short quote from the great Benjamin Franklin seems very relevant for unemployed people

"Energy and persistence conquer all things."

So stay energized this week and don't ever give up!

Job Search Site Of The Week: Job.com

2010-01-21T14:00:00.000-08:00

The internet is a great way to access literally millions of job postings. But with so many job websites out there, which ones should you use? I am a big fan of the Job.com website.

When you perform a job search on Job.com, you have the option to select "jobs from across the web". This option which will return jobs matching your search criteria from many different job posting websites including careerbuilder.com, monster.com, indeed.com, recruiter websites, and your local online newspaper. It is a great way to perform a wide-reaching job search in just a few minutes.

Click any of the links in this post to start searching for your new job on Job.com for free!

Hosting Guests During Unemployment

2010-01-20T14:56:00.000-08:00

One of the reasons that I took a break from blogging over the holiday season was that I had family in town. It is a really good idea to host guests at your home during unemployment for the following reasons:

1. Save money
You'll definitely save money compared to traveling to visit family and friends. By staying home you eliminate travel, accommodation, and other associated expenses.

2. You have time to be a great host
Because you don't have a job, you'll have more to be a great host. You can plan an itinerary and spend time taking your guests out sightseeing, shopping, eating, drinking, etc. If you're lucky (like I was) your guests may even pick up the tab for the eating and drinking part!

3. Reconnect with friends and family
The time you spend with your guests is a to focus on what's really important in your life (i.e. positive personal relationships) and get your mind off your unemployed status.

4. Advice
Friends and family may be able to provide some fresh ideas to help improve your situation. They may be able to suggest business ideas, prospective employers, or simply provide you encouragement.

Back From Hiatus

2010-01-19T13:50:00.000-08:00

Fellow unemployees... I would like to announce my return to blogging after a month-long hiatus. I took a brief break as I had family in town for the holiday season, followed by a very arduous exam. I will resume blogging every weekday and have plenty of exciting tips, experiences, offers, and anecdotes to share.

Stay tuned to Prosperous Unemployment!

Friday Free Stuff: Free Suits

2009-12-18T10:37:00.000-08:00

Dressing appropriately for a job interview is important, but what can you do if you don't have a suit and can't afford to buy one? Be on the look out for free suit giveaways in your area. A few months ago, a barber in the Seattle area (Flint Men's Grooming) was giving away gently used suits and providing free men's grooming for the unemployed. I called for an appointment, but they were fully booked within a few minutes of announcing this amazing free offer.

There is also a charity organization called "Dress for Success" that provides professional attire to disadvantaged women. They serve clients by referral only from certain non-profit and government agencies, so definitely take advantage of this service if it is offered to you.

Good luck finding your free suit!

Tax Saving Tip #1: Donate Stuff You Don't Need

2009-12-17T19:06:00.000-08:00

In yesterday's post I suggested selling stuff that you don't need to make some extra cash. You may find that some of your stuff is just unsellable (like those old 'N Sync CDs) so you should go ahead and donate it to a worthy charity. Not only is this a great way to help out those less fortunate than yourself and reduce clutter, but you can also get a tax deduction for donations to qualifying charities. Here are a few key points to be aware of if you want to claim the deduction:

You must be eligible to itemize your deductions.
The donation needs to be to a qualified tax-exempt organization. You can determine if an organization is qualified by searching Publication 78 on the IRS website.
You can deduct the "fair value" of the property donated. For used clothing and household items, the fair value will generally be a lot less than what you originally paid for the items.
Keep records of your contributions. Many charities provide receipts for donated items, so file these somewhere safe. Refer to Publication 526 on the IRS website for more information on the documentation required to substantiate your contributions.
You will need to complete IRS Form 8283 if you wish to claim a deduction for noncash contributions that total over $500 for a particular year.
Your donation deduction cannot exceed 50% of your adjusted gross income for the year.

You have until December 31 to donate if you want to claim the deduction in this tax year. So go ahead and donate to your favorite charity. Who knows, your contributions may even help brighten up someone's Christmas!

Money Making Tip #1: Sell Stuff You Don't Need

2009-12-16T22:43:00.000-08:00

Extra cash always comes in handy when you're unemployed. When you sell stuff you don't need, not only do you make money, but you can also unclutter your living space which can be particularly liberating experience. Start by walking round your home and looking for stuff that you don't use or don't like. I've found that you can sell all kinds of things including clothes, toys, electronics, furniture, computers, appliances, tools, books, etc.

Selling stuff online is really quite easy once you get the hang of it. I use ebay for goods that I am happy to ship to customers and craigslist for bulkier items for which the shipping cost would be prohibitive. With the ebay auction website you can reach customers all over the world, though the site does charge an insertion fee for listing an item and a final value fee for a listing that sells. Craigslist is a classified ad site that groups ads by locality and is suitable for reaching potential customers that live nearby. The major benefit of craigslist is that it is free to post ads (with certain exceptions including job posts, New York brokered apartments, and adult services). You can also use more traditional methods of selling such as holding a garage / yard sale, posting ads in a local newspaper or trade magazine, or selling at the local flea market.

Happy selling!

Money Saving Tip #1: Lose The Landline

2009-12-15T10:58:00.000-08:00

A good way to cut your monthly expenses is to get rid of your landline phone. I got rid of mine four years ago and haven't missed it at all. My cellphone and high-speed internet connection are all I need to stay in contact with friends, family, and potential employers. Click here for my post on using Skype to make free video calls to other Skype users via your computer. Ditching your landline should save you around $20 per month. Do it!

Positive Quote For The Week

2009-12-14T06:06:00.000-08:00

Monday tends to be the worst day of the week whether you are working or not. I want to try and change that by providing you with an inspirational, positive, or otherwise helpful quote. Today's quote comes from Lucius Annaeus Seneca, a Roman Stoic philosopher:

"A gem cannot be polished without friction, nor a man perfected without trials."

So this week, try to perceive the trials of your unemployment as actually helping you to develop as a person. The benefits of unemployment may not be obvious, but maybe you are developing strength of character, or learning a new skill, or appreciating different aspects of life that you neglected when working. It may seem tough right now, but some day you'll look back and be thankful!

Friday Free Stuff: Free Long Distance And International Calls

2009-12-11T16:02:00.000-08:00

If you're like me have have friends any family across America or around the world, you will want to keep in touch with them during your unemployment. They will want to know how your job search is going and some of them may even be able to recommend you to potential employers. Concerned that you can't afford to make long distance calls, let alone international ones? Don't be. There's a way to use your computer to make video and voice calls over the internet for free! And you don't even need a phone!

I've been using Skype for over a year now to make free video and voice calls across the US and to countries as far away as New Zealand. You can use Skype with your broadband internet connection to call anyone who also has Skype. Now most of my friends and family are using Skype, so I no longer have to pay to talk to them. It really is a fantastic service. You can also use it to call landlines or cellphones, though Skype does charge for this (the rates are very low).

Here's what you'll need to use Skype:

1. Computer connected to the internet

You'll need either a PC or Mac to run the software on, plus a broadband internet connection.

2. Microphone and speakers

So you can communicate with your friends and family. Some computers have a built-in microphone and speakers. If you don't already have a microphone and speakers, you'll need to buy them.

Beat Unemployment Stress With Exercise

2009-12-10T23:27:00.000-08:00

If you've been unemployed for any period of time you know that it can be a stressful experience. When you are stressed your adrenal cortex produces more of the hormone cortisol, which is known as the "stress hormone". Cortisol is secreted into the bloodstream naturally as part of our evolutionary "fight or flight" response to danger or stress, however, sustained high levels of cortisol can have a number of adverse effects such as increased blood pressure, impaired cognitive performance, weakened immune system, osteoporosis, and increased abdominal fat.

During exercise, cortisol levels may temporarily rise, but if you maintain a regular exercise program your body will adapt by producing lower levels of cortisol. Exercise also stimulates the production of "feel-good" hormones such as endorphins. Researchers at Duke University determined that just 30 minutes of exercise a day can significantly reduce the symptoms of stress. Of course, there are many other health benefits of proper exercise such as lower risk of heart disease, improved cardiorespiratory fitness, prevention of weight gain, and lower risk of certain cancers. The U.S Department of Health and Human Services has written an excellent set of physical activity guidelines which you can access for free by clicking the link below:
2008 Physical Activity Guidelines for Americans

So how do you go about exercising if you are unemployed and short of cash? Here are some ideas for exercising on a budget:

1. Get moving
If you own a pair of running shoes, then you have all the equipment you need for running, jogging, or brisk walking. These are all great forms of cardiovascular exercise.

2. Heavy stuff
Want to weight train but cant afford a set of weights or gym membership? Get creative and make your own weights. I've exercised before with hefty accounting textbooks (at least they get used for something!) but you can also use plastic milk containers filled with sand or whatever else is lying round your home.

3. Used equipment
Many people buy exercise equipment with good intentions but somehow lose the motivation to put it to good use. For this reason you can find all sorts of used equipment at cheap prices. Try garage sales, thrift stores, and craigslist. I picked up a complete home gym on craigslist for just 50 bucks!

4. Discounted gym memberships
Going to the gym is the one of the more expensive exercise options, but there are ways you can lessen the financial impact. Be on the lookout for free trials and discounted memberships.

Can I Travel While Receiving Unemployment Benefits?

2009-12-09T14:18:00.000-08:00

Yes, you can travel and receive unemployment benefits under certain circumstances. You are required to be ready for work and actively seeking work in order to continue receiving unemployment benefits, which means travel for the purpose of finding a job is allowed. It is best to keep a log of your job searching activities while out of state so that you have some evidence. Also, some states will allow you to travel and continue to claim benefits in other situations, such as travel to a funeral of a family member or travel for a required medical procedure.

I haven't done any major travel since becoming unemployed, though I have gone on short trips (less than a week) to Portland, San Francisco, Vancouver BC, and Yellowstone National Park. I had no problems receiving unemployment during these short trips, but it could be a different story if you plan to sit on a beach in Costa Rica for three months.

Check with your state's unemployment office if you will be gone for more than a week as there may be certain state-specific requirements that you need to adhere to. Click here for a table of links to each state's frequently asked questions on unemployment benefits.

How Long Can I Claim Unemployment Benefits?

2009-12-08T12:42:00.000-08:00

There are two key factors that affect the number of weeks that you can claim unemployment benefits:

1. The state that you claim benefits from

2. The date of your original claim

Most states provide unemployment benefits for 26 weeks. There are also multiple tiers of federal emergency benefits and extended benefits that you may be eligible for depending on your original claim date and whether you have exhausted the previous tier of benefits. For example, if your started claiming unemployment benefits from the state of New York between May 1, 2006 and June 23, 2008 you can receive up to 93 weeks of payments as follows:

26 weeks of regular unemployment benefits
20 weeks of Tier 1 emergency benefits
13 weeks of Tier 2 emergency benefits
20 weeks of extended benefits
14 weeks of additional emergency benefits
= 93 weeks total

If your claims began more recently (after June 22, 2009), you will only be eligible for the regular 26 weeks of unemployment benefits. Your state's unemployment office should be able to provide you with the specific details on benefit duration. Click here for a table of links to each state's frequently asked questions on unemployment benefits.

What Should I Do With My Severance Pay?

2009-12-07T00:12:00.000-08:00

Severance pay could be the biggest paycheck you ever receive, so think very carefully about what you are going to do with it. You may be tempted to go on a wild spending spree with this money, but I would advise against it. Use the money wisely.

First, pay off any credit card balances you have. Interest rates are typically very high on credit cards so you will benefit in the long-run if you can get your balances down to zero. Start with the card balance with the highest interest rate and work your way down.

Secondly, think about making purchases that will help you start making money again, whether it be from employment or starting your own business. If you will be looking for a job, ask yourself the following questions to determine what you need to buy:

What clothing will I need for interviews? Do I need a new suit?
Can I get to in person interviews? What public transport options are available? Do I need a car?
Am I physically residing in the place where I want to get a job? Should I consider moving? What expenses will be involved?

Consider the following if you plan on starting your own business:

Can you operate your business from your home? Or do you need to rent or purchase premises for your business?
Do you need equipment? Inventory? A vehicle?
What licenses or permits do you need? Do you need to pay fees to form a company?

Finally, if you have have any severance money left over you should save it. Your period of unemployment may be long and it can be reassuring to have some cash in the bank for emergencies. See my previous post about how you can get a good interest rate and a bonus $25 when you open a Orange Savings Account with ING DIRECT.

Friday Free Stuff: $25 bonus from ING Direct

2009-12-04T09:40:00.000-08:00

We often find ourselves short of cash during unemployment, so each Friday I will provide ways of obtaining free stuff, whether it be goods, services, or cold hard cash!

This week's offer is for a free $25 from ING DIRECT when you open an Orange Savings Account and deposit $250. I personally opened an account with ING DIRECT back in August and received a $25 bonus right away. They are an online bank and the entire account opening process can be performed online without any paperwork! ING's interest rate is also very competitive (currently 1.3% annual percentage yield). I highly recommend this bank, especially when you can get $25 for free!

This is how the offer works:

This a referral offer so send me an email at paulnrobertson@gmail.com if you are interested and I will send you the referral link to receive the free $25 (please use the first link in the email)
You have 30 days to use the referral link
The $25 bonus is only available to new customers opening a new account as a primary owner
When you open a new account with at least a $250 deposit you will receive the $25 bonus
I will receive $10 for referring you
I only have 25 24 referrals available, so email me as soon as you can!

Are Unemployment Benefits Taxable?

2009-12-03T11:30:00.000-08:00

The Bad News

Yes, unemployment benefits are considered to be income and are subject to federal tax. I know it seems like the government is giving with one hand and taking back with the other, but that's how they roll.

The Good News

Fortunately, the American Recovery and Reinvestment Act (aka "the stimulus package") does provide some tax relief to unemployment benefit recipients. For the 2009 tax year the first $2,400 of benefits will not be taxed by the IRS. See following article on the IRS website for further details:

http://www.irs.gov/newsroom/article/0,,id=205633,00.html

Advice

Elect to have federal taxes automatically withheld from your weekly unemployment payments in order to avoid a big tax bill when you do your taxes. The 10% withholding can be setup when you apply for unemployment benefits or at any time while receiving those benefits. Alternatively, you could elect to make quarterly estimated tax payments, however, this is more time consuming than the withholding option.

The state will provide you with Form 1099-G which shows your taxable benefits and amount of withholding for the year. You will then use these figures when preparing your tax return to the IRS. You should receive Form 1099-G by January 31, 2010.

Am I Eligible For Unemployment Benefits?

2009-12-02T13:45:00.000-08:00

One of the first things you should do after becoming unemployed is submit your application for unemployment benefits. There can be a delay of a few weeks from submitting your application to receiving your first payment, so get on it right away.

The quickest and most efficient way to apply is via the internet. Some states do offer other methods of applying such as by phone or in person, but these are too time consuming. There are a number of websites out there that offer to assist you in applying for unemployment benefits for a fee. DO NOT USE THEM! Applying for unemployment is really quite simple if you follow the rules as posted on your state's website. Here are some basic eligibility requirements for unemployment benefits:

Previous work and earnings: you must have worked and been paid wages in at least two calendar quarters in your base period (generally the first four of the last five completed calendar quarters prior to your claim). Each state has a minimum amount that you must have earned during your base period.

Circumstances of employment termination: in general, you will only be eligible for unemployment benefits if you lost your job through no fault of your own.

Seeking work: you must be ready, willing, and able to work, and actively seeking work. Some states may require you to keep a log of your job searching efforts or to attend workshops related to finding employment.

Authorized to work in the United States: you do not have to be a US Citizen to claim unemployment, but you must be authorized to work in the US. Illegal immigrants are out of luck.

The eligibility rules do vary by state so I have prepared a table with links to the Frequently Asked Questions on each state's unemployment office website. I have also included the maximum weekly unemployment benefit amount payable by each state:

State (click to go to state website Frequently Asked Questions)	Gross Maximum Weekly Benefit (assuming no dependents)
Alabama	$255
Alaska	$370
Arizona	$240
Arkansas	$409
California	$450
Colorado	$487
Connecticut	$519
Delaware	$330
District of Columbia	$359
Florida	$275
Georgia	$330
Hawaii	$545
Idaho	$362
Illinois	$385
Indiana	$390
Iowa	$374
Kansas	$423
Kentucky	$415
Louisiana	$258
Maine	$356
Maryland	$410
Massachusetts	$629
Michigan	$387
Minnesota	$585
Mississippi	$235
Missouri	$320
Montana	$407
Nebraska	$308
Nevada	$362
New Hampshire	$427
New Jersey	$584
New Mexico	$455
New York	$405
North Carolina	$505
North Dakota	$431
Ohio	$372
Oklahoma	$392
Oregon	$507
Pennsylvania	$547
Rhode Island	$528
South Carolina	$326
South Dakota	$285
Tennessee	$275
Texas	$392
Utah	$444
Vermont	$450
Virginia	$378
Washington	$611
West Virginia	$424
Wisconsin	$363
Wyoming	$438

Termination Day and Severance Pay

2009-12-01T00:03:00.000-08:00

The day that you find out that you've lost your job can be an emotional one. Take a couple of deep breaths and try to stay composed. You don't want to do a Jerry Maguire and "flip out". Rise above it all and be as gracious as possible. Don't burn your bridges because the relationships you have built at your job may come in handy in future.

If you are entitled to severance pay, you should do what you can to maximize the amount you receive. Your employment contract should state the amount you are entitled to, but don't assume that you can't get more than what is stated in your contract. Although you don't have a lot of leverage to negotiate, you also don't have anything to lose (you've already lost your job!). Aim to make an emotional appeal to your boss for a bigger severance package. Mention the years of service you've dedicated to your job, the number of kids you have to feed, and the dire economy which could mean months of unemployment. Many employers understand the value of parting on good terms since former employees can become future customers. I was lucky when I lost my job - my employer doubled the severance package that I was entitled to!

Be Prepared for Unemployment

2009-11-30T17:57:00.000-08:00

In these uncertain economic times it is prudent to follow the Scout's motto and "be prepared" for anything, especially unemployment. Be on the lookout for signs that your job may be on the chopping block, from the obvious, such as company lay off announcements, to more subtle hints such as budget cuts or the loss of a key customer. Here are some practical steps you can take if you think your job is in jeopardy:

1. Make visible contributions to the bottom line

Now is the time to put in extra effort to demonstrate the value you are contributing to the company's bottom line. Be sure that this effort is noticed by your boss and that you get the credit you deserve. Here are some suggestions for getting noticed in a good way:

Arrive at work before your boss and leave after they do
Bring in a new customer or increase sales to existing customers
Deliver a project on time and within budget
Look for creative ways to cut costs and report back to your boss on actual cost savings
Cancel any upcoming vacations.

2. Follow the rules

Whatever happens, do not violate any company policies. If you call in sick and then are spotted at partying at Chippendales, not only could you get fired, but you may miss out on severance pay and you may be denied unemployment benefits. Reread important company policies, such as those related to expense claims and the code of conduct, and follow them to the letter.

3. Pay membership dues

If your company has a policy of reimbursing membership dues for certain trade or professional associations that you belong to, you should pay these in full and submit the expense claim right away. Be sure to adhere to the rules related to reimbursable expenses (see 2 above). If you do lose your job you won't have to worry about footing the bill for annual membership, which can be a few hundred dollars per association. You want to continue to belong to these associations during your unemployment as they are great to mention on your résumé. Update your email and mailing addresses with these associations to your personal addresses so that you continue to receive correspondence if you leave your company.

4. Redeem credit card rewards points

Think about using your corporate credit card rewards points on something useful. Your employer will cancel any corporate credit cards you have upon termination of employment and you could lose all those valuable points. American Express gives you 30 days from the card's cancellation date to use your reward points. So use them before you lose them!

5. Take advantage of free offers
Some companies have programs whereby they offer goods or services to employees at little or no cost. My former employer had a particular generous health and well-being program from which I acquired $150 worth of Macy's vouchers, books, and CDs at no cost to myself. Look into what your employer is offering and place orders for items that you think will be of benefit to you.

6. Update your résumé
Chances are you don't have a résumé that is up-to-date and ready to be sent to prospective employers. Get working on it now, but do so at home on your own time. The last thing you want is to be caught updating your résumé in the office, when you should be busy making visible contributions to your company's bottom line (see 1 above).

7. Review your employment contract
Remind yourself of key contractual provisions related to termination of employment, such the period of notice required and severance pay. Tomorrow I will discuss severance pay and termination in more detail.

Black Friday Advice

2009-11-27T00:11:00.000-08:00

Black Friday is upon us and some of you may be preparing to brave the cold and long lines to get your hands a new Xbox or flat screen TV. Before doing so, ask you self one question - do I really need it? The answer is probably no, so save your money, avoid the consumer hordes, and enjoy a good night's sleep in your nice warm bed!

Giving Thanks Every Day

2009-11-26T13:05:00.000-08:00

Happy Thanksgiving to all, especially my fellow unemployees who may be finding the holiday season particularly difficult to deal with. On this day, and every day, it is important to appreciate what we do have.

Many authors on the topic of positive psychology talk about the link between gratitude and happiness. One of my favorites is Tal Ben-Shahar, who has written several books and held lectures on positive psychology at Harvard University. He sites practical research on gratitude and the benefits that it can bring about, which include:

Increased optimism

Greater likelihood of goal achievement

More likely to help others

In order to make gratitude a habit, Ben-Shahar strongly recommends keeping a journal and writing down at least five things that you are grateful for every day. The key is to really feel the emotion of gratitude as you write your list. Try it. Here is a list of what I am grateful for today:

1. My girlfriend
2. My family
3. Thanksgiving salmon (yes, we had salmon this year... it was delicious!)
4. Falling leaves
5. Being able to read

If you want to read more from Tal Ben-Shahar, check out his book "Happier: Learn the Secrets to Daily Joy and Lasting Fulfillment" at Amazon.com or, better still, see if your local library has a copy:

What is Prosperous Unemployment?

2009-11-25T23:26:00.000-08:00

So what does the phrase "prosperous unemployment" mean? You're probably thinking that this phrase in an oxymoron. How is it even possible to be prosperous without a regular salary or wage?

Let's start by taking a closer look a the word "prosperous" as defined by the Merriam-Webster dictionary:

pros·per·ous
Pronunciation: \ˈpräs-p(ə-)rəs\
Function: adjective

Etymology: Middle English, from Medieval Latin prosperosus, from Latin prosperus

Date: 15th century

1 : auspicious, favorable
2 a : marked by success or economic well-being b : enjoying vigorous and healthy growth

"marked by success or economic well-being"

Throughout this blog I will endeavor to provide you with tips and strategies for success and economic survival, if not well-being, during your unemployment. Can I make you filthy, stinking rich? Probably not. Do I guarantee that I'll find you a job? I can't find myself a job, so no. What I can provide are realistic ways to bring in some extra cash to help make ends met.

"enjoying vigorous and healthy growth"

Obviously economic survival is the primary challenge while unemployed, however, it should not be your only goal. If your only focus is to survive, then you've regressed to the days of the caveman. You have to get away from the thinking that your life is "on hold" during unemployment and that any growth as a person must wait until you start receiving a monthly paycheck again. In fact, the unemployment is the best time to reevaluate your life, decide what changes you want to make, and start making them. You do, after all, have a lot of time on your hands, right?