How to Handle a Pay Cut: Budgeting in Uncertain Times
A pay cut, whether big or small, can catch you off guardâand throw your finances into disarray. While a salary cut is different than a layoff, it can leave you feeling just as uncertain. How do you deal with a pay cut and deal with this uncertainty? There are strategies to help you navigate both the emotional and financial challenges of this situation. One key element? A budget. Whether you need to create a budget from scratch or adjust the budget you already have, doing so can help you get back on your feet and set yourself up for success. Hereâs a rundown of budgeting tips to survive a pay cut to keep your finances intact: Ask your employer for the parameters of the income reduction or salary cut First, keep in mind that a pay cut typically isnât personal. According to Scott Bis...