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Four Ways to Make the Most of a Reduced Paycheck
Tough economic times are hitting people with pay cuts and layoffs. With planning and a careful look at your finances, you can survive during challenging times. These tips also can help you save for the future expenses and emergencies.
- Take a look at your monthly expenses and prioritize them. Decide what you need to pay for and what you can, temporarily, let go. Housing, food, transportation and insurance should take top priority. Dining out, clothes and entertainment may need to be sacrificed for the time being.
- When shopping, consider every purchase. Ask yourself if you really need it, and if you do, can it wait awhile, or can you get it less somewhere else. This will also help you avoid relying on credit cards during this difficult period.
- If you have credit card payments and simply don’t have the money, contact your creditors immediately. You may be eligible for special programs that will keep your accounts in good standing. Waiting until you are behind will not only increase your balance from interest rates and fees, but will damage your credit as well.
- Planning for Next Time
The money you get today will need to be stretched to cover those times when there will be less or nothing coming in. Resist the urge to spend it all each month. Once you know how much you will need to save, have that sum deducted monthly from your checking account and deposited into a savings account.