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7 On Your Side recently met up with one man who survived two years of unemployment and is now helping others in the same situation.
There is a lot of work these days for Fred Slone, maybe a bit too much. He is the workforce development manager for the County of San Mateo and he helps people who come to the county seeking help.
Slone knows what it is like for people trying to survive without a paycheck. He himself was unemployed for two years during the dot com bust. It really hit him hard in month seven.
"You get to that, you realize wow, I had all these resumes out. I had all these interviews and nothing is working," said Slone..
Unemployment benefits clearly were not going to be enough to support his family. The experts say that is why it is important to control your spending.
"Am I overspending? If you're running a deficit every month where you're spending more than you're bringing in the door, no matter whether you work or lose your job, you're not going to be able to continue to pay at that rate," said Jim McHale with McHale Financial.
For Slone, that meant making some tough decisions.
"Do you need a movie channel? Do you eat out? What are you spending on cell phones? You know it becomes what are the things that are absolutely essential?" said Slone
He was also able to save money by refinancing his mortgage and taking advantage of lower interest rates. He also took whatever temporary work he could find.
"So, between all those pieces you sort of put stuff together and get through," said Slone.
Under President Obama's stimulus plan, those laid off since September and already enrolled in their employer's health plan may be eligible for up to a 65 percent discount through Cobra. The discount is good for nine months.
After that, you may want to consider an individual plan with a high deductible, but lower premiums.
"Don't buy the Cadillac plan. Buy the catastrophic coverage. I always tell people, 'Is it easier to come up with a $5000 deductible or a $50,000 hospital bill?" said McHale.
The best advice Slone says he can give the unemployed is to stay active. He remained active in his son's school and he volunteered to help pass a school parcel tax. Contacts he made through his volunteer work lead directly to his current job.
"I was involved with the schools. I was involved with the local preschool and just doing things to help the community. And, it gave me sort of a positive outlook, something to do to keep my mind active. And, I think it helped my job search," said McHale.
Click here to see the Better Business Bureau's free booklet called "Making Smart Financial Choices After a Job Loss."
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