Tips on How to Cut Costs While Unemployed

The recession has left millions of Americans jobless, struggling to pay their bills and feed their families while dealing with the emotional stress of long-term unemployment. Here are some tips from a family that has been dealing with unemployment for a year.

UTILITY BUNDLES: Comparison shop with different carriers offering bundled packages for cable, high-speed Internet and phone service. Don McCoy, a former high-tech executive with a Pittsburgh-area company who has been unemployed for a year, saved almost $70 a month by switching providers.

COMPARISON SHOPPING: Sylvia McCoy, Don McCoy's wife, no longer does her grocery shopping in one store. Instead, she makes a list and visits several stores to save money. For example, McCoy says, Costco has the cheapest organic milk and eggs, while Wal-Mart offers the best buy on soy milk. With gas prices dropping, it can make sense to comparison shop when stores are within a few miles of one another.

PLANTING A GARDEN: Unable to keep up with the costs of buying organic produce, even through a neighborhood cooperative, the McCoys planted their own garden, saving about $150 from April through October on peppers, tomatoes, butternut squash, a variety of herbs and even sunflowers.

CUTTING THE EXTRAS: Extracurricular activities for children, such as dance and karate classes, are often expensive. They can be cut temporarily until a job is found and money issues stabilize. In addition, eating out, vacations, baby sitters and even clothes shopping are all places a family can save.

HEALTH INSURANCE: Probably the most drastic step a family can take is to cancel health insurance. However, the McCoys were paying an $850 a month premium for health insurance through COBRA. By canceling that and applying for a state-subsidized plan offered in Pennsylvania, McCoy believes he will save about $500 a month.

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