Reduced Hours, Paycut - What's Next?

"He reduced my hours and pay. Did anything change with you?"

I was having a pay-cut conversation with my Arizona-based coworker. Her hours were cut from 40 to 35 a week. Mine stayed the same but I have to let go of the bonus part this year and no pay increase as well. I guess we all have to make little sacrifices.

She was considering a second job on the weekends but opted not to take it because of her young children. Changing jobs is out of the question, at least for now, she said. Getting a high paying job will require her to commute. That means more time away from her kids. Plus the expenses associated with commuting e.g. gas, work clothes, etc., will just increase her family’s monthly spending.

California is bankrupt and most businesses if not all, are taking the hit. Even though insurance is one product that Americans cannot give up easily because of the consequences of not being insured and non-compliance with state requirements, people are still finding ways to reduce insurance costs. They shop for cheaper rates, go direct with carriers, reduce coverage and increase deductibles to save on premiums.

There are companies who are worse off and have resorted to layoffs and furloughs. People are taking second jobs. That is if there are second jobs jobs available.

The New York Times reported that unemployment was up in June, shedding off 467,000 jobs, the highest in 26 years. I don’t know when things will start improving. I cannot even assure myself of the job I have held for over two years even though my boss tells me that my job is safe. When the boss needs to make tough calls, then that’s it for me.

Anyway, I can’t just sit around and wait for things to unfold before my eyes. I try to save much, spend less on the non-essentials and work on additional projects that fit my schedule.