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Unemployment And It's Effect On Personal Finance

Unemployment And It's Effect On Personal Finance


Unemployment And It's Effect On Personal Finance

by Tara Hope-Smith

Unemployment and it's effect on personal finances is a major topic in today's economy. Unemployment can be used in general terms as someone who does not work, but it technically means someone who wants to work and is capable of working but, for various reasons, is not. The unemployment rate is the percentage of unemployed people as related to the number of people in a work force in a country. It is an excellent indicator of the country's economic and political status.

The lower the unemployment rate, the better things are going for that country. Life is of a higher quality because more people are earning money and can afford more luxuries. It also means that they have options with what they want to do with their lives since more jobs are available and competition is lower. It can also let someone know if women are allows to work in that country.

Globally, many people are losing their jobs and their incomes. Everyone is saving as much money as they can. It is both good and bad to save because, though it is unwise to spend recklessly, if enough people save enough money, other companies will have to lay off more people. This puts more people in competition for jobs and fewer jobs to be had.

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?

Looking for a new job when few jobs are to be had is an unpleasant task. There is a lot of competition. Until the new job is found, many people have to use up their savings in order to survive. Using your savings for its intended purpose (namely your retirement) is already problematic because people live longer and often use up their funds before they die. If you touch your savings early on, you are going to have greater problems when you are older.

Young people do not have savings. They may have to borrow money to pay even small bills. Many will become homeless or have debt for the rest of their lives. Crime rates rise and people end up with greater debt because of the fines they have to pay.

Many governments provide food coupons or a welfare system to help during these situations. Some people who do not want to work just live on these systems, hurting everyone. It can be hard for some people to admit that they need help when they do and it can be hard for others to admit that they do not need help as much as other people. This system can really be a crutch for people.

One good thing is that it gives people the opportunity to go back to school. It can be the right decision for some people but a very bad decision for those who have not thought it out. You must figure out if you can afford schooling instead of work you could be doing in that time instead. You must make sure it is a degree that will actually help you in your career and will give you the tools you need to make you happy. You have to think if the debt you will get from schooling could ever be paid off.

About the Author:
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