In my post yesterday I said that I was going to be taking a very deep cut in my salary to take on a new job shortly in the new year. I’m not doing any of this light heartedly and I’m not doing this without any form of planning. For me this drop will be close to $1000 per month after taxes which will seriously impact what spending I am able to do while keeping my debt from increasing.
First and foremost the key will be to reduce my expenses. I’ve been thinking about how to do this without having to sell a kidney in the process. Here’s the list I’ve come up with so far:
- Toll roads – yes they save me loads of time, but at over $100 a month, even a month of reduced costs will give me some leeway next month.
- Food Costs – Planned menus, actually shopping at cheaper grocery stores, buying in bulk where possible and just trying to make sure there isn’t money being wasted on food.
- Entertainment Costs – These are going to have to be cut, there’s just no ifs ands or buts about it. As it is this is one of the items I was going to target to reduce my expenditure so it’ll be a forced trial by fire.
- Miscellaneous Costs – I’ve been trying to quit smoking and now I’ve got yet another great reason to simply stop. This will translate to a fair chunk of change.
- Lunches – A great way for me to cut down on expenses will be to start brining my lunch to work most of the time rather than occasionally.
I’m going to start all of these from pretty much now in an effort to bank up as much money as possible before the drop in salary. The next thing that I’m going to do is expand my budgeting to account for all my expenses and bills going forward to ensure that nothing is missed.
Finally, this move gives me a good excuse to evaluate my plans: internet, cell, credit cards, and car insurance and to make sure that I’ve got the best plans possible for my needs. If all goes well this change will not be nearly as drastic as imagined.
[tags]Job change, Salary cuts, expenses, expense reductions, budgeting[/tags]