Several organizations are currently bearing the brunt of the Coronavirus pandemic. To help cushion the effects and keep the business afloat, some of them have taken a tough decision to cut staff salaries by a percentage.
This isn’t good news, especially for employees. Having to deal with the economic effect of a pay cut during a pandemic is an ordeal most people did not prepare for.
If you fall into this category, we’re here to tell you that it will get better in time. To help you handle the current situation, here are some tips:
Get More Details
Find out more details about this pay cut. Will your responsibilities or work hours be reduced to match your new pay? Does the company have any plans for financial recovery? When will they bump your salary back to its original amount? These are some questions to ask, to gain some more clarity and determine whether you should stay with the company or plan an exit strategy.
Revise your Budget
If we’re practical, working with the budget based on your previous paycheck might not be the best idea. With the new development, you would have to go back to the drawing board and create a new budget that is tailored to your new income.
Make sure you separate your necessities from your splurges./ luxuries, so you can have a clear idea of how to manage your money and expenses, as well as what to forgo in the meantime.
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Cut Down on Certain Expenses
Your new salary after a pay cut will most likely be unable to accommodate certain expenses. Give all your costs a hard look and decide which of them might be unnecessary for now.
Find Ways to Augment Your income
If you don’t already have a side job, now might be a good time to take one up. While there might be limited opportunities during this period, you can engage your network, search for opportunities and find ways to monetize certain skills. Augmenting your current income with other income streams will help you stay afloat.
Negotiate if You Can
If your company gives you the leeway to negotiate a pay cut, you can go ahead to do so. Can you forgo certain monthly employee benefits so you can take a lower pay cut or no pay cut at all? You can speak to your HR Manager to get some insight and negotiate based on it.
Keep Up Your Saving Habits
You might feel discouraged and decide to ditch your savings culture. However, it’s advisable not to. Assess your saving goals and find ways to continue saving, even if you have to reduce the percentage you save.
Don’t Beat Yourself Up
Our last point is not so financial, but it will help. It’s normal to feel bad after receiving a pay cut at work. However, it’s essential to avoid letting it get the best of you. Remind yourself that it’s not a permanent situation and that in no time, you’ll bounce back better.
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