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Whether your company cut payroll or you were laid off and forced to take a job that paid you less, you don't have to max out your credit cards or sell your blood to survive. Here are some tips to help you cope if you're making less money than you did before the recession hit.
Tip #1: Downsize Your Budget
Paying the same bills you had before the recession hit with less money might seem like an impossible task. But if you were doing well prior to 2007, it may have been some time since you last looked at your budget. By going through your expenses and examining where you spend your money, you'll be able to identify expenses you can eliminate (like that $5 Starbucks coffee every day). Using a budgeting website or smartphone application can be extremely helpful in monitoring your budget.
Tip #2: Evaluate Your Living Situation
What's your living situation like? Are you renting a huge apartment in the most expensive part of town? Could you cut your rent and living expenses down by turning your study into an extra bedroom and renting it out to a friend? Is it time to consider moving to a less expensive area where you can get more bang for your buck?
#3: Cut Dead Weight
We all have expenses that eat up an enormous chunk of our paycheck. Identify what that expense is, and see if you can find a less expensive alternative. Let's say, for example, that you own your own car and drive to work. Look into commuting options such as public transportation and ride share, which could save you money on gas and parking each week. You can even take it a step further and look into car-sharing options like I-Go, which would allow you to sell you car and save on monthly payments, maintenance, and insurance.
Tip #4: Pick Up Overtime
If you're an hourly employee, there may be an opportunity within your organization to pick up overtime (especially if business is starting to pick back up, but your managers are waiting to re-hire). Although you might not want to sign up for extra hours ever single week, coming in early, staying late, or working on the weekends on occasion can help pay a bill, buy groceries, or pad your savings account.
Tip #5: Freelance or Consult
Another option many are turning to during the recession are freelance projects or running a side business. If you've got skills or hobbies that you enjoy pursuing on the side, why not get paid for them? Explore freelance opportunities (such as freelance writing, web design, or graphic design), make and sell your own crafts on websites like http://www.etsy.com, or use your skills to consult for other businesses that need your expertise. Who knows - your side gig might just grow into a business that can sustain itself and you.
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