February 7, 2012

Can You Afford To Take A Pay Cut?

Tax firm – Tenon have been researching whether employees will be willing to accept salary cut in this current financial climate. This follows the refusal of the long-term hostess of Channel 4′s “Countdown” programme Carol Vorderman to take a 90% pay cut from her £1m salary down to £100,000!!!.

89% of the responders to the poll  unsurprisingly said they would reject the cut. The remaining 11%,  in my opinion, are either company owners or those who are already on their way out of their current employments – so they don’t care.

Due to the credit crunch, many companies have been looking for ways to make cuts, and cutting wages is really a drastic measure that is mostly used as a last resort because, for obvious reasons, it is deeply unpopular with employees.

If the worst happens and you’re asked to take a pay cut or loose your job completely what will you do? many people will be at the mercy of their precious credit cards – thus making matters worse.

For many months, i have been been advocating the fact that people should manage to put some money aside for the ‘rainy day’. Saving is simple; just spend LESS THAN you earn and put the rest aside. It is always not easy but with diligence nd discipline you can do it. Proverbs 21:5 says “The plans of a hard-working person lead to prosperity, but everyone who is [always] in a hurry ends up in poverty”.

No matter how small, from this month, begin to put some saving aside; when the ‘rain’ (or an emergency) come, you’ll be glad you did.

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