Michael Naujunas of Hoboken, NJ was laid off from his job on September 1. The past five months, the former retail procurement manager has done more than hit up Craigslist for job leads, he’s also managed to cut down his monthly spending by $900.

Hoboken is just across the river from Manhattan, making it a popular destination for recent college graduates who are entering the professional world. But don’t let the young party crowd fool you — the average rent for a monthly one-bedroom apartment is over $2,000, only a few hundred bucks less than what you would find in the most popular neighborhoods in Manhattan. (Data from rentaldata.myapartmentmap.com)

Living in a trendy town for young, Manhattan professionals when you’re unemployed isn’t easy. Michael’s unemployment checks cover his basic costs, but he’s cut down his monthly budget without having to touch his savings or his severance pay. The basics like rent, bills and groceries cost him $1500 a month when he was employed. Without a job, Michael has saved on commuting and has cut down on what he pays toward his credit card bringing him to $1200 a month.

Cutting down on social expenses is where Michael has been able to really watch his spending.  “Having fun smartly is key,” said Michael.

How exactly has Michael been able to still have fun, but the smart way? For starters, staying out of Manhattan doesn’t hurt. Instead of joining friends for happy hour after work, Michael invites friends over to his Hoboken apartment. Friends can enjoy home-cooked meals and drinks at Michael’s apartment, offering for a more relaxing and intimate setting, while letting all those involved save money.

A lot of Michael’s friends understand his situation, which is unfortunately a common one these days, and don’t mind if he skips out on a meal out and instead shows up later for after dinner drinks.

“There are also times where I have cut out alcohol altogether,” said Michael. “I still go to concerts every month or so, but now I don’t even bother getting a drink while I’m at the show.”

Being unemployed in this economy isn’t great, but nearly everyone is having a hard time. In addition to inviting Michael for after dinner drinks instead of a big meal out, his friends have also agreed on a budget-friendly New Year’s resolution.

“We have all chosen a month to plan something and are up front about things to do, whether they be a special dinner, concert, museums, etc,” said Michael. “Knowing that these things will happen in advance has helped a lot in planning my spending.”

Facing your monthly expenses is the first step in changing your lifestyle after losing your job. For Michael, the key is to plan ahead.

“If you know where your money is coming from and you know where it is going, it makes the transition very easy,” he said.

Other advice he offers to the recently unemployed comes handy during the current tax season.  “The first $2400 of unemployment does not have to be declared  on your taxes,” Michael advises. “So if you can get a new job within roughly three months of being laid off, you won’t have to report those earnings.

And the best way to get a job within those three months? Social networking. Michael has been able to get a lot of job leads through Twitter by searching “tweetmyjobs” and adding a city or job title he’s found from popular job boards like Monster.

Cutting back on social expenses and using free job tools like Twitter have really made a difference in Michael’s job hunt and overall lifestyle.

“The benefit to these actions is that I think I may even keep some of them in play once I receive a job, just to build my savings faster or contribute more to my retirement funds,” said Michael. “Don’t worry about cutting back on social extras, your friends will be more understanding than you can imagine.”

Michael is currently seeking a position in construction finance, procurement/sourcing, or social media. To hire this budget-savvy Hoboken professional, check out his resume at www.linkedin.com/in/mnauj or at mnauj.emurse.com.

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