How to survive after a pay cut

Effects of Coronavirus have been felt all over the world and while some have some lost their jobs, others have been informed of pay cuts.

It is tough to survive in such times since because movement is limited and the curfew also means you cannot engage in side hustles after normal working hours.

This is not the time to despair, on the contrary, it is time to draft new budgets and to reduce spending to ensure we have just what we need.

Draft a new budget

The previous budget you had was based on your salary at the time, this means you have to adapt to your reduced income.

You do not want to go into debt so you need to have a distinct plan outlining your necessities and luxuries.

List the things you can live without

Perhaps you were paying Sh2000 for internet before, downgrading to a package worth Sh1000 will save you some cash.

Now that almost all sporting activities have come to a halt, you do not need cable TV. Do away with the service.

The government has also discouraged parties and clubbing so if you used to go out every weekend, now you can’t and it means you can save a few extra coins.

Save on necessities

The fact that something is necessary does not mean you should overspend.

For instance, maybe you liked having sausages and meat on your menu almost daily. Substituting these with arrowroots and greens will not only save you money but also make you healthier.

If you were used to buying take outs, consider preparing your meals at home and buying the ingredients in bulk.

Adopt a saving plan

The fact that your income has been reduced does not mean you cannot save something little.

Decide what percentage of your income will go to your savings account.

Consider moving to a cheaper house

This might be extreme but if your finances are extremely stretched, looking for a cheaper house would go a long way in ensuring you do not plunge into bankruptcy.

Look for alternative sources of income

It is evident that your income has reduced significantly, you need to figure out a way of generating money. Learn a few skills online or use your talents/passion to make some money.