Taking a Cut in Pay and Surviving

While the unemployment rate is allegedly going down, there are still plenty of companies that are struggling to get by. While many of these struggling companies see layoffs as the only answer many companies feel a loyalty to their employees and try to do anything they can to keep them around. While cash advances are one way to cover the cost of payroll they’re not a long term solution so one cost saving measure that some companies will make is lowering the wages of their employees.

If you’ve found yourself in this situation you understand that getting a cut in pay can be difficult. When you are used to spending a certain amount of money it can be hard to adjust to spending less. Regardless of the reason for your cut in pay, you should be sure that you are prepared to make your tight budget work for you. There are a lot of people that struggle understanding how they are going to make a tight budget realistic in their life. You may feel like there is no way that you can survive on less money, but realistically, there are some changes that you may be able to make to ensure your new income is sufficient.

Start Saving Money on Food

First, start with the money that you are spending on food. Food is going to be a necessary expense and it is important that you are purchasing food that will keep you healthy. Many people do not realize that they can save a lot of money on the food that the purchase by eradicating trips to restaurants. Making your own food and going grocery shopping on a consistent basis is a great way to ensure that you are going to save money on your food.

To save money on food, you can start by making a weekly menu for yourself. Plan out your breakfast, lunch, and dinners so you know what you are going to eat for each meal. If you have never done this before, it may seem intimidating, but once you get into the swing of things it will be much easier. When you know what you are going to eat, you can then make yourself a grocery list.

Going to the grocery store on a weekly basis usually seems to work well for people. When you are going more than that, you may be making excessive trips to the grocery store but when you are going less than that you may find that your fresh fruits and vegetables go bad. Finding the sweet spot between going too often and not going enough will depend on how much you and your household are eating and what you like to cook.

The food that you are bringing into your home may also save you money on medical bills. Although you may not realize how strong this correlation is at first, the correlation is there. Eating fresh and healthy food throughout the week can save you money on medication and trips to the doctor. Staying healthy is a great way to save money.

Another trap that people fall into with the food that they are purchasing is buying inexpensive snacks throughout the week. Although a drink may only be a dollar, if you are buying that drink every day the cost can add up quickly. By packing your own snacks, making your own coffee or even buying soda in bulk and keeping it at home, you can save a lot of money over the weeks and the years.

Ask Yourself, Do You Really Need That?

Second, no matter what you are purchasing, it is important that you assess the purchase. Spending money mindlessly can be extremely detrimental to your budget. While you are working on being mindful of each of your purchases, you may want to run your purchases by someone that you trust. As you get used to assessing each of your purchases, you may find that you purchase less.

Before you purchase something, it is important that you know how often you are going to use it. You may want to purchase a movie, but if you know that you are not going to watch it on a consistent basis it may be better to rent it from the library or even rent it. This way, you are

not investing in something that you are not going to use once you bring it home.

Buy Used, When it Makes Sense

Finally, do not be afraid to buy used products. With websites that provide shoppers the opportunity to browse through thousands of used products, you may find that you are able to save money on every day purchases. If you are going to purchase online, it is important that you incorporate the shipping cost in your decision making process. You should know how much you are willing to pay and make sure that you do not pay more than that figure.

Getting a cut in pay and having to live on a tight budget can be difficult at first, but once you get used to your new lifestyle it may become natural. You can learn to adjust your spending and saving habits to ensure that your new pay is enough to live well.

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