About A Wealth of Knowledge
Financial expert Michelle Singletary answers questions about personal finance and the economy.
Visit the Road to Wealth for more personal finance information.
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Trouble Catching Up
Q: I love your show Singletary Says on TV One. I am learning a lot. However, I was unemployed for eight months. I've had a part-time job for the past year. I have just gotten a roommate, but I am having a hard time building my savings account back up, due to trying to "catch up." Can you help me?
A Viewer, Suffolk, VA
A: I'm not sure if it's any consolation, but you are not alone in giving up looking for finding full-time work.
The number of long-term unemployed (those who are jobless for 27 weeks or more) rose by 584,000 in July, to 5 million. In July, one in three unemployed persons were jobless for 27 weeks or more, according to the Bureau of Labor Statistics.
The number of persons working part-time for economic reasons (sometimes referred to as "involuntary part-time workers") was little changed in July, at 8.8 million.
But you didn't stop looking, and that's important.
And, you got a roommate. Good for you.
Now give yourself a pat on the back for not giving up. That's huge, considering this economy.
As for building back up your savings, be patient, because it will take time. You've had a major hit. Although you have a roommate now, you're still probably just getting by. The important thing right now is to concentrate on keeping up with your basic necessities.
I hope you've called any creditors to see if you can get on an extended payment plan or ask for a forbearance, to give you some breathing room until you can find full-time employment.
However, having said that, if you can put away a tiny bit of savings--even $10 a paycheck--do it! Even a small savings can help keep you from having to borrow if you get into a financial jam.
The key is to still stick to a budget. Click here to access some helpful resources, especially the "Monthly Spending Plan" worksheet (PDF). Also, check the "Creating A Budget" tipsheet, where you will find useful information.
Mostly, I want to you to stay encouraged.
This too shall pass.
(Photo by prawnpie)