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Furlough days and other temporary income reductions

Last post Mon, Oct 10 2011 10:22 PM by karenteacher. 7 replies.
Page 1 of 1 (8 items)
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  • Thu, Sep 29 2011 12:06 PM

    Furlough days and other temporary income reductions

    As part of our contract negotiations, the union agreed to a furlough day... the other options having been worse.  There won't be raises of any type, but with the furlough day there also won't be additional pay cuts.  I haven't finished planning for this as the date of the furlough day is still to be determined (and therefore the month in which the pay reduction will occur), but I will be putting extra money in savings to be ready when it comes.  How have people dealt with such short-term reductions in pay?

  • Thu, Sep 29 2011 12:33 PM In reply to

    • babs
    • Top 10 Contributor
      Female
    • Joined on Mon, Apr 2 2007
    • Vermont
    • Posts 10,988

    Re: Furlough days and other temporary income reductions

    OUr reductions have been long term not short. DH took a reduction in pay the past two years. As of this month, my income is down $1,000. a month. I am in the process of taking a deep breath and figuring it out. I do think that you are on the right track to put money back, knowing that this is coming.  Also maybe figure out what you can cut for the time that isnt a need. NOt sure what that might be.......Babs

    Officially recognized Stretchpert in Prayer Circle
  • Thu, Sep 29 2011 3:16 PM In reply to

    Re: Furlough days and other temporary income reductions

    karenteacher:
    How have people dealt with such short-term reductions in pay?
     

    As a part-time RN, I work in preference over the PRN staff, but am cancelled in preference to the full-time staff. For the last two years, November & December have been slow in the NICU, so last year I made sure I had shopped ahead & completed holiday gifts, birthday gifts, stocked the freezer & pantry,  etc, so that when the call-offs came, I could choose to look at them as extra time off instead as cut pay.  I know that is somewhat a mind game, but it works for me.

  • Thu, Sep 29 2011 6:23 PM In reply to

    Re: Furlough days and other temporary income reductions

      We've dealt with both short term (furloughs) and permanent (pay cuts) reductions in the last couple of years.   We've definitely adjusted our spending ... we've also taken opportunities to bring in a bit of extra $$ when possible.   Can't say it makes up for the shortfall, but every bit helps.  So far, we've been OK .... 

    www.dodgeandweave.blogspot.com
  • Thu, Sep 29 2011 8:11 PM In reply to

    Re: Furlough days and other temporary income reductions

    temporary hmmm mine is not went from 1600.00 a month back in the ninties down to a few hundred insult to injury been this way for nearly 13 years what a slap in the face now I deal with it shut up and belly up to the bar..

    My dad went from 40,000 ayear from being a collage teacher to higher education he is not going down lightly he said when he hits seventy five he is getting a part time job I have to teach him about the laws here in wa. and about canadian laws about titles he will be working on a car lot not what he wants he rather do that then teach again electronics are out software tech crap is in and so is eclectronics.

    Wo do we like it no but we just live with it and mom and dad are now low incom themselves if it were for the house being paid off and the cars they and I would be out in the streets not fun just go year by year.

  • Mon, Oct 10 2011 6:55 PM In reply to

    Re: Furlough days and other temporary income reductions

    Sorry to chime in late.  I've been on work travel (paid out of my own pocket...that was one of the many budget cuts this year).

    Personally, I prefer a furlough to a pay cut.  When they quit doling out furloughs, you are still on full pay so the money comes right back.  It can take years to get back to original pay if you take a pay cut. 

    When I've had pay cuts and furloughs I start with the budget.  If the net effect (I always work from takehome pay rather than gross pay) is 10%, I cut every variable line in the budget by 10%.  So groceries, entertainment, etc.  The car insurance and cell phone bills are "sort of fixed" so I deal with those next.  I call the insurance company and see if I can get that lowered.  Same with cell phone and landline.  I got about 15$ per month off the landline last time I tried.  I'm on the lowest cell phone plan that has reliable service around here so that is fairly uncuttable...I did STOP talking more minutes than are paid for and paid 5$ a month more to allow more texting.  This ended up cutting 10-12$/month by stopping over-minute charges (which were still cheaper than the next plan up).

     Then, I add it all up and see if I'm coming in at the new pay cut.  Things like rent don't go down (and thank goodness have not gone up!), and utilities and gas costs go up so usually the first cut only gets me partway there.  Then I start looking at things like clothing.  For one entire year, I cut the whole clothing budget and just wore what I had and borrowed clothes for special events.  That helped with the furlough costs that year.  I asked for underwear and socks for gifts.

     When I get down to the amount of the new lower income, I give it one or two more shots at cutting costs so I can keep saving.  Turning the thermostat down.  Buying bulk dry beans rather than canned, etc.  This part is when one stops cutting to the bone, and starts shaving the bone.  If you have a family, it will be tougher but maybe they can pitch in.

     This year, my 5th without a raise and with a higher chance of being laidoff or just let go, I'm working on starting a small side business that could be expanded if I'm laid off, let go, or quit in frustration at the ever increasing workload and never increasing pay.

     Good luck with the furloughs! It can be difficult and I hope you and yours make it through.   I keep  hearing from the muckety mucks and pundits how the economy is recovering, but where I live, it has been going down quickly over the last 6 months.

  • Mon, Oct 10 2011 8:57 PM In reply to

    Re: Furlough days and other temporary income reductions

    karenteacher:

    As part of our contract negotiations, the union agreed to a furlough day... the other options having been worse.  There won't be raises of any type, but with the furlough day there also won't be additional pay cuts.  I haven't finished planning for this as the date of the furlough day is still to be determined (and therefore the month in which the pay reduction will occur), but I will be putting extra money in savings to be ready when it comes.  How have people dealt with such short-term reductions in pay?

    The union and teacher should settle soon or is it longer then that my dad went threw something like that from the collage he got fed up and so did 8 other teachers let the union argue while dad got a chance what he likes to do the best teach he did way back trig calculis physics basic engineer for first year and computers the secound year and my favorite is robotics doing an arm for hospitalos and software programs..

  • Mon, Oct 10 2011 10:22 PM In reply to

    Re: Furlough days and other temporary income reductions

    Maggie Trudeau:

    Good luck with the furloughs! It can be difficult and I hope you and yours make it through.   I keep  hearing from the muckety mucks and pundits how the economy is recovering, but where I live, it has been going down quickly over the last 6 months.

     

    Thanks... we're still waiting to see if the contract was approved - the proposal is only for 1 day this year, but that month is going to be very tight, and I've already started cutting back for it.

     

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