Manage Finances with These Tricks When Experiencing a Salary Cut 2

In the midst of the COVID-19 pandemic, many companies have had to cut their employees’ salaries as a solution to survive. This may be a problem for you because when payday arrives, your income is no longer as big as it used to be while expenses remain at the same nominal. Therefore, here are some tricks that you can apply before payday arrives so that your finances can be well organized.

Reduce Cash Withdrawal Amounts

To avoid using after payday money for unimportant things, you can reduce the amount of cash withdrawals when shopping outside the house. Also avoid filling up your electronic wallets or online shopping applications. If you have to fill it in to make non-cash payment transactions, fill it with the right amount.

When going shopping, make a list of needs in detail. Also find out the price range of the product to be purchased so that you can already predict the nominal amount that will be issued. This nominal amount will be your spending limit when shopping for daily necessities.

Emergency Fund Allocation and Savings

If possible, create two accounts. The first account that you use for payday and save funds for daily needs, while the other accounts you set up to allocate emergency funds and save. In this second account, you will save funds from the salary that you have deducted and managed to set aside.

No matter how small the income you receive at payday, keep trying to set aside an emergency fund and save at least 30% of the amount of salary received. So the order of priority is paying installments, spending on primary and vital needs, and setting aside emergency funds and saving. You can leave your emergency fund every month in the main account. If not used then transferred to a savings account.

Consider a Side Business

The final solution for dealing with the problem of cutting wages is to have a side business besides the main job you are doing. Consider a business that you can do from home, with small capital and simple tools, such as a dropshipper or online business.

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