[et_pb_section fb_built=”1″ _builder_version=”4.16″ _module_preset=”default” custom_margin=”||||false|false” custom_margin_last_edited=”off|desktop” custom_padding=”||50px||false|false” top_divider_style=”curve2″ top_divider_color=”#e7dff3″ top_divider_flip=”horizontal|vertical” top_divider_height_tablet=”” top_divider_height_phone=”” top_divider_height_last_edited=”on|phone” bottom_divider_style=”curve2″ bottom_divider_color=”#5b25af” bottom_divider_arrangement=”above_content” hover_enabled=”0″ da_disable_devices=”off|off|off” global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″ da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” custom_padding=”||0px||false|false” sticky_enabled=”0″][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n
Facing a pay cut<\/strong> is scary, but when you know it\u2019s going to happen, how you get ready for it is key. Instead of waiting until your pay cheque gets smaller, take steps right now to bring your spending in line with what your reduced income will be. This can mean the difference between surviving the tough times or dealing with a financial disaster later on. Here\u2019s what to focus on: [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_2,1_2″ make_equal=”on” _builder_version=”4.27.4″ _module_preset=”default” custom_margin=”0px||0px||false|false” custom_padding=”0px||0px||false|false” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”1_2″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” custom_margin=”|-5px|0px||false|false” custom_padding=”||0px||false|false” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n Before worrying about anything else, make sure your essential living costs are taken care of. Whether you\u2019ve taken a pay cut, been laid off, are on strike, or are locked out, these are the expenses that you need to survive. First pay your mortgage or rent, and then make sure your food and medical needs are met. If you\u2019ve topped up your mortgage payments to pay your house off faster, this is a good time to contact your lender and go back to making the base payment. Next, pay your utilities and other necessary costs, but draw the line at purchases or services you don\u2019t need right now (especially package deals and contracts that renew automatically). And be honest with yourself as you look at your expenses. This is the time to focus on what you need, not what you want. A good way to do that is to avoid credit cards and pay only with cash, a debit card, or an app linked to a bank account.<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.27.4″ _module_preset=”default” custom_css_main_element=”margin: auto;” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_image src=”https:\/\/nomoredebts.org\/wp-content\/uploads\/2020\/11\/facing-reduced-income_feature_blog.jpg” alt=”A woman working on her finances facing reduced income.” title_text=”Close Up Of People Hands Moving Plastic Figurines 2025 02 17 21 45 33 Utc 1″ _builder_version=”4.27.4″ _module_preset=”default” width=”100%” custom_margin=”||0px|5px||” hover_enabled=”0″ border_radii=”off|200px|20px|200px|20px” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content” animation_style=”slide” animation_direction=”right” animation_intensity_slide=”5%” sticky_enabled=”0″ align_last_edited=”on|phone” align_tablet=”center” align_phone=”center”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n Examples of Costs to Cut for an Emergency Budget<\/a><\/p>\n If your reduced income and savings is not enough to afford your essential living expenses, your next step is to find ways to boost your cash on hand. In the short-term, this might mean taking a look around your house to see if there\u2019s anything you could sell, whether that\u2019s a car, electronics, jewelry, antiques, or other assets.<\/p>\n How to Live On One Income Successfully<\/a><\/p>\n In the medium-term, think about increasing your income by taking in a boarder, renting extra space in your home, or doing part-time work. Of course, keep in mind that these come with their own costs and considerations. For example, you only want to take on an extra job after calculating if it will actually earn you money without risking your main job.<\/p>\n 4 Reality Checks to Make Before Starting a Side Hustle<\/a><\/p>\n When facing a pay cut, most people don\u2019t want to change how they\u2019re living and will make up the difference by using credit. However, doing this can make it hard to get back on track with your finances in the future, even if your income does goes up again. So long as your essential living costs are met, avoid taking on debt when you don\u2019t know when you can pay it off.<\/p>\n If you already owe your bank or credit union money through loans or credit cards with them specifically and fall behind on the payments, you\u2019ll need to take extra steps to keep the money you do have safe. Your financial institution can use funds in your accounts to pay down debts you have with them without your permission. To protect the money you need to survive, open a new account at a financial institution where you don\u2019t owe anything. You\u2019ll be able to do that even if you\u2019re in debt or can\u2019t make a deposit right away. Learn more about your banking rights and responsibilities<\/a>\u00a0and deposit all future income into this new bank account.<\/p>\n If you can\u2019t pay your debts, your credit rating will be affected. It will recover when you\u2019re able to make payments again. Your focus needs to be on taking care of yourself and your family, not your credit rating. However, you should explain your current situation to your creditors. They are better able to assist you before you fall behind on your payments.<\/p>\n Communicating With Your Creditors<\/a><\/p>\n Community assistance is available to those who need it. If you\u2019re struggling to make ends meet, don\u2019t be afraid to ask for help at the food bank, your place or worship, or any groups you belong to; you can always repay the favour when you\u2019re back on your feet. Also apply to any services you may qualify for, such as EI and other employment-related insurance. With insurance like EI, you\u2019ve already paid for their use ahead of time with your premiums, so this is the moment to make them work for you.<\/p>\n How Tariffs Could Impact Your Wallet: Practice Money Tips for Canadians<\/a><\/p>\n A family plan might be needed to get everyone\u2019s cooperation and participation. Help younger kids understand that their needs will still be met but that some of the extras won\u2019t be possible right now. Teenagers and young adults can do their fair share to either help around the house or contribute towards their expenses. When the going gets tough, focus on solutions, not blame<\/a>.<\/p>\n Dealing with a pay cut and reduced income can feel overwhelming, especially when you and your family are depending on that money to survive. If you have questions about your finances, need help making a solid budget that brings your spending in line with a lower level of income, or want guidance on dealing with your debts, the Credit Counselling Society is here for you. Reach out to us toll-free at 1-888-527-8999<\/a>, send us an email<\/a>, or start an anonymous online chat<\/a>. One of our credit counsellors would be happy to help you in a free and confidential appointment.<\/p>\nLast Updated on June 12, 2025 \n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Facing a pay cut is scary, but there are steps you can take now to protect your money and finances. Here\u2019s what to focus on when your income will be reduced.<\/p>\n","protected":false},"author":3,"featured_media":24429,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"1080","_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[117],"tags":[],"class_list":["post-17938","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manage-money-better"],"yoast_head":"\n
<\/p>\nBe Realistic About Your Essential Expenses \u2013 Even With a Pay Cut<\/h2>\n
Banking, Credit, and Debt on a Pay Cut<\/h2>\n
Get Help to Manage the Challenges of Reduced Income<\/h2>\n
What to Do When Your Pay Cut Feels Overwhelming<\/h3>\n