March 10, 2011 3 Comments
I spent some time this afternoon putting together my “Furlough Budget”. This is a reduction of approximately $2,125 from my total $51,000 salary that will be taken out over the course of the next 8 paychecks. Basically I have to live off of 85% of my normal salary for the next 4 months. So somehow I have to “remove” $450-500 from my zero-based budget each month.
Here are the changes that I’ve made:
- Reduced payment of my debt to a minimum. Unfortunately I can’t afford at this time to pay more than this. I hate it. But I can’t pay more on my debt and still break even every month with my bills. Savings: $226
- Reduced my food budget by $40 per month. This means I’ll have to be more conscientious in the next 4 months with making sure I eat at home. Savings: $40
- Reduced dog care budget. I was saving $100 per month for this. Now I’ll be saving only $40 per month. I have his care paid for until May on this month. Which means that in the summer I’ll only be able to take him 2-3 days a month. Savings: $60
- Eliminated my entertainment and clothing budget. I don’t anticipate having to spend on my clothing budget in the next 4 months. I still have the $20 in it from before the furlough goes in to effect. The entertainment budget I’ll essentially merge with my Miscellaneous budget which will have to cover both type of expenses. Savings: $60
- Eliminated some of my yearly savings. I eliminated savings in my yearly savings account for non-essential purchases. So I cut out the gym, haircuts, and FPU. Essentially, I’m saying that since I won’t have to pay on these things in the next 4 months I’m not going to contribute to saving for them in the next 4 months. Savings: $40
- Reduced some of my yearly savings. I reduced my savings towards Christmas and Vacations to 80% of their normal value. Since these are adjustable and variable expenses, saving slightly less doesn’t effect the end result. I reduced my savings towards pet vaccinations and car registration to 90% of their normal value. Savings: $20
With these 6 steps I eliminated $486 from my budget. I don’t know if I’ve been overly conservative with how I’ve budgeted or overly liberal. I’m not exactly sure what my final paycheck different will be, especially considering taxes are a percentage. I will be tweaking the budget accordingly when I get my first and second paycheck. To be honest, I’m not quite sure exactly where I’ll have to pull more money out of if I have to eliminate MORE from my budget than $486 per month. Here is what my furlough budget looks like now:
The BRIGHT side of all of this turmoil at work is that they’re pushing very hard to make sure that students get in to summer school classes.
The dean of the college sent out an email today letting us know that if we teach a summer school class we’ll get between $2,100-$3,000 for the 4-6 weeks of work. So if I can get 4 students to sign up for a Physical Science class I want to offer I should be able to make at least $2,100 which would more than compensate for my reduced furlough pay. However, the money for this wouldn’t be paid to me until AFTER June 30th. So I’ll still have to live on a tight budget until then and can compensate for my savings losses after I get paid for the summer school gig.
This is all really, really stressful. I wish I was still working for Tutor.com so I can compensate for this loss of income immediately with increased tutoring hours. I may go post some fliers at my sister’s school. This is around the time that students start to get really worried about their classes and doing well in them. If I could pick up $50/week in tutoring for the next 3 months that would help a lot.