So you’ve taken a pay cut…

WHETHER you volunteered, were guilted into it, or were forced to, chances are you are one of those people who, having had a salary cut because of COVID-19, are trying to figure out how to make ends meet.

Many companies took the route of layoffs and salary cuts in the last month, leaving employees scrambling to carry water in baskets that were already saturated before. And as things remain uncertain job-wise, there’s always the worry that things could get worse before they get better.

What do you do when you’ve already budgeted out your salary and are forced to budget some more? Here are some tips for surviving on a limited salary after you’ve had a pay cut.

Make use of moratoriums, but…

Your mortgage company may have offered a moratorium on payments, and this will seem like a good opportunity to divert some money to other areas of need. However, ensure that you check the fine print — including the payback amount. Some mortgage companies are offering, for example, three-month moratoriums, with payback claimable for the life of the mortgage. Ensure that before you take the offer, you know whether you can afford the increase in mortgage that will follow. You may be better served using the National Housing Trust (NHT) special assistance programme, which offers relief to regular mortgagors, as well as those who got their mortgages under the Joint Finance Mortgage Programme.

Cut back

You should already have an idea of which supermarkets sell grocery items cheaper, and if you hadn’t been using those places before, now is the time. Use wholesales for bulk items and basic food items such as rice, sugar, flour, and oil; meat shops for meat; and chemical shops for household chemicals and detergents. You’d be amazed at the hundreds of dollars in savings when you shop smart.

Something has to give

You may not have enough money to stretch to pay all the bills, so something may have to give. You’d know that the water company has ceased disconnections, while the power company hasn’t. So if you only have money for one, you know where the decision lies.

Take on a second job

Many call centres are hiring agents to work from home, and this is a good opportunity to make some extra bucks. You would have already mastered the art of working from home from the weeks you spent turning your home into a workspace, so continue to capitalise on this. Work nights if you must, but put the hours in and reap the rewards.

Take up debt relief offers

If your bank or loan company is offering relief from your car loan, or other debt, take it. If the credit card company is offering a payment holiday, take it, but also know that conditions apply. Read the fine print before you sign, and save some money.

Take those care packages

If an organisation or politician is in your community offering care packages, put pride aside and take them. Even if you have no use for the items, you can pass them on to someone who needs them.

Cancel subscriptions you’re not using

Sure you can’t do without Netflix, or so you think! Cancel for a month, or two, or three, and catch up with your shows via download. The same goes for cable… and you might not even need that ultra high-speed Internet when the basic package does the work anyway.

Save on your ‘necessary’ expenses

We’re not saying that the loss of income should mean that you lose all personal pleasures, but there are ways to still look good on a budget. Gel polish, for example, looks even better and costs less than acrylic, and you can just pay to paint your toes instead of getting the full pedicure.

Plan meals

This is the easiest way to save money on groceries. Before you go to the supermarket, spend some time to plan out your meals for the week, and buy ingredients accordingly. If you have children, plan meals that are filling, so they will not want to snack afterwards.

Buy generic

There are some things that you should always buy branded — like toilet tissue, deodorant and toothpaste — because it just makes more sense. But there are other things that in their generic form are just as good as the name brands. Generic or store-brand products are usually cheaper than brand name, so buy these in disinfectants, detergents, dish soap and the like.

Rent out your extra space

All your children don’t need their own rooms, especially if they’re too young to appreciate it. Consider renting out one of your rooms for the short term, and having the children room together until this storm has passed.