When it comes to your job, there’s some good news: you didn’t get fired! You still have a job to come to work to day after day, which means that you’re still going to be able to give your family the life they deserve. People get really worried when their company starts making changes, but for the most part, you walked away without too many scratches or cuts…or did you?
You see, you might still have your job, but the company may have asked you to take less pay for the same amount of work. Of course, everyone knows that companies don’t just “ask” you to do anything — they’re telling you that you’re going to be taking a pay cut because it’s not feasible for them to pay you that higher paycheck anymore. Every business owner knows that one of the highest expenses is payroll. It costs money to make money and it costs money to pay the workers, and it costs even more money to manage their benefits and other human resources information that’s absolutely vital to promoting a good company culture. If you really want to make sure that you’re on the safe side of things, you might want to think about a future where your salary would be cut and how you would make sure that your family is still safe even with the decrease in pay.
First and foremost, if you have a spouse that isn’t working because you wanted them to stay home, it might be time for them to try to get a job. Sure, it’s nice to be able to start a business, but if you’ve got to actually dig down deep and get money quickly, you might have to have your spouse just take a job that pays some sort of income. It’s not fun and it’s certainly not anything we look forward to doing, but the last thing that you will want to find yourself being unable to pay the bills because you’re thinking about so many bills at one time hitting your account. That’s something that’s only going to stress you out and make it harder for you to focus on what matters.
You will need to make sure that you’re study your budget and that you can make changes. Yes, there are going to be essential services in there — we’re not asking you to give up your security system alarm if you really feel that it makes you keep safe.
You may need to even start thinking about buying different groceries than you’re used to. Yes, you can use coupons but you shouldn’t just use coupons to save money on things that you wouldn’t normally buy. Hunt for new deals or even ask the local grocery store to help you get bulk deals. Buying things in bulk can really save you a lot of money.
Overall, there are a lot of things to think about when it’s just a cut in pay and not an actual job loss. One concern that can’t be stressed enough is the need to find another job. Yes, you might really like your job. However, if you’ve already had one paycut, don’t think that your company will just keep it at just one. If they need to save more money, you could end up taking another cut or even lose another raise — that’s something that can make you feel like they don’t value you at all.
If you really start thinking about it, you’ll find that your ability to deal with a pay cut is going to depend on how much you prepared for that situation. If you have an emergency savings fund, then it’s easier to weather the storm until you can find other ways to put money into the house. However, if you don’t have that cushion, then your agenda is going to have to mean starting an emergency savings account. Don’t borrow from your retirement account, as that just puts you further behind. If you absolutely needed the money, then do so but try to avoid this action if you can. You will most likely have to pay the retirement fund back, without interest.
We updated this guide to reflect the deepening recession. It’s a tough world out there. You have to make sure that you’re going to be able to fight back and actually win the fight over time. It can really feel like you should just give up — never give up. There’s too much good that you can actually do in the world!