How to handle money when you’re unemployed

Apply for employment insurance (EI)

When you lose your job, you should begin the process of applying for EI as soon as possible. EI is a government program that can temporarily replace a portion of your income while you’re unemployed. 

There are a variety of criteria you need to meet to qualify for EI, including: 

• You have lost your job through no fault of your own
• You’re ready, willing, and able to work
• You have worked the required number of insurable employment hours in the last 52 weeks or since the start of your last EI claim, whichever is shorter

The full breakdown of criteria qualifying for EI can be found here. 

EVEN IF YOU ARE UNSURE IF YOU MEET ALL THE CRITERIA, YOU SHOULD APPLY. 

Applying will allow the government to assess your situation and determine your eligibility. This way you’ll begin receiving EI payments as soon as possible after losing your job if you do qualify.

How much money does EI pay?

Each EI claim is a unique circumstance, and it is impossible to say for sure how much someone will receive until their claim is processed.

For most people, EI pays about 55% of their average weekly pay, up to a set maximum amount. The maximum weekly amount as of January 2026 is $729 a week.

You can find more information about how much you could receive on the government’s website here.

Create a budget

Building a budget is one of the most important things you can do to stay financially stable when you’re unemployed. You can run through your savings and overspend your EI money faster than you think if you don’t track your spending.

A budget allows you to see how much money you’re spending and what you’re spending it on. There are many ways to build a budget, but when you’re unemployed, you should start with the basics.

To start your budget, list all forms of income you have; this means EI and perhaps any part-time or gig work you have. Look at any money you have in an emergency fund as well.

Next, look at your necessary expenses; this includes: 

• Rent/mortgage
• Utilities
• Phone/internet bill
• Car payments/insurance
• Food

This will show you what you must pay for and how much it costs each month.

From there you can look to cut back on unnecessary spending and save money.

11 Quick ways to save money

Finding ways to cut costs and save money is crucial when you’re unemployed. 

Once you see what you must spend on essentials, it’s time to find ways to cut other costs. This can be done in a variety of different ways. 

1. Cut food costs: Plan your meals, use weekly flyer apps like Flipp to find the best deals; cook at home instead of ordering takeout. 
2. Reduce transportation costs: Use public transit, carpool, bike, or walk, when possible, to cut down on gas and parking costs. 
3. Shop store-owned brands: Buy the generic or store-label products; these often cost less but offer similar quality. 
4. Cancel unused subscriptions: Review streaming services, apps, and memberships, and cancel ones you don’t need. 
5. Limit energy use at home: Turn off lights, unplug electronics, and lower heating or cooling when you don’t need it to reduce utility bills. 
6. Put a pause on nonessential purchases: Delay buying items like new clothes or gadgets.
7. Negotiate bills: Call your phone, internet, or insurance providers to ask about lower-cost plans or promotions. If you explain your situation, they may work with you to find a lower price. 
8. Use community resources: Visit local food banks, clothing swaps, or community centres that offer free or low-cost support. 
9. Buy secondhand when possible: Shop at thrift stores or online marketplaces for items instead of buying new. 
10. Borrow instead of buying: Check with friends, family, or your local library for books, tools, or equipment you only need temporarily. 
11. Try no-spend days: Dedicate one or two days each week to avoid all non-essential spending, which helps you reset your habits and stretch your budget further.

Increase your income

Even if you’re actively looking for a new full-time job, it can really help to take on a temporary role to help boost your income when you’re struggling with unemployment. 

Gig work is a popular choice for many, as it lets you earn money on your own schedule while searching for a permanent job.

Here’s some ways you can look to boost your income:

1. Delivery services: Work for food delivery apps or local courier services to earn money on your schedule.
2. Rideshare driving: Drive for a rideshare company if you have a reliable vehicle and enjoy interacting with people.
3. Dog walking or pet sitting: Offer services to friends and family. They may even pay you in cash, which is untaxable.
4. Tutoring: If you know people with children, you can offer to provide tutoring for subjects they struggle in. 
5. Sell unused items: Sell clothes, electronics, or household items online or locally.

Avoid using credit as much as possible

Do your best not to use credit for things while you’re unemployed. It’s best to stick to debit and cash to pay for things instead.

Using money that’s already in your bank account instead of a credit card will help you avoid falling into debt while unemployed.

However, the current high cost of living makes avoiding credit completely unrealistic for many who are unemployed.

When using credit becomes necessary, a line of credit offers significantly better terms than a credit card. Personal lines of credit typically charge interest rates of 6-12%, while the interest rate on credit cards often exceed 20%. This substantial difference can save you hundreds of dollars in interest charges over time.

Struggling to manage your money while unemployed? We can help you

If managing money during unemployment becomes overwhelming or debt problems mount, BDO's Licensed Insolvency Trustees can help you with professional, judgment-free guidance.

BDO's Licensed Insolvency Trustees understand that job loss can happen to anyone. They focus on finding you realistic solutions rather than dwelling on past financial decisions.

The initial consultation is completely free of charge, and you’re not obligated to sign anything. This consultation can be completed in as little as an hour. 

In that time our Trustee can explain every option available to you and how each can help.

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