Have you ever or how would you react to taking a significant pay cut?

[Goldy1]

This could mean switching jobs or fields etc.

[Caoineag]

Well, my husbands income is about half what it would have been if this recession hadn't hit so we have definitely taken the pay cut. But we never lived with high fixed expenses so despite that, we are doing just fine. I have still chosen to cut back on some things and am eyeing up cuts in the future but that is only because we still have some debt to pay off and I don't want to slow down the pay off.

[cschin4]

It depends. If a paycut was forthcoming because the company was doing poorly and it would actually help save my job in the long run, I would just deal with it. And, of course, ALWAYS looking for a new job with better income and bennies.
If I was changing jobs to something less stressful, less hours and better for my lifestyle and long term goals, then if it was something I could live with I would take it and be fine with it.
If my salary was cut and it was a big hit financially, I would just continue to work and accept it while I was looking for another job to move on to. I would not quit because of that. A dollar in my pocket is still a dollar in my pocket. Every dollar you earn helps push you ahead so I don't discount small incomes as every bit is important.

[disneysteve]

I left my job at the beginning of February 2000. I was out of work until late April at which time I took a part-time position making about half of my previous income. After a couple of months, my hours were expanded to full-time but I was still making about 30% less than my previous job. To this day, I earn less than I would be earning had I stayed at my old job.

I did all of this voluntarily, though. I was very unhappy at my old job and my new one is much better - better hours, better treatment.

[maat55]

If you are living on the edge, you would have to lower your lifestyle. It may mean moving, selling a car etc.

I would adjust my lifestyle in order to still save, unless the income reduction is temporary.

My income is not consistant, but my lifestyle leaves room for lower earnings when they occur. I have maintained my savings goals throughout this recession. My extra spending money has been my only casualty, but not much.

[GREENBACK]

I've taken a small paycut in this economic downturn. Not significant for me but noticable. I haven't altered anything but am keeping an eye on expenses a little more.

I'm happy in my profession so no considerations of changing jobs for pay, one way or the other.

[buildmybudget]

If you love your job, you'd probably be happy to take a pay cut if it meant you could stay. I know several people who have taken pay cuts and they all say they are happy to at least still have a job. It's so hard to replace a job these days... My approach has just been to expect the best, but prepare for the worst!

[FrugalIII]

I just took a 14% paycut. If I had not agreed to do that, I would have been laid off. My "position" was being eliminated. I agreed to a lower position with lower pay as a temporary fix to the budget problems. I have very little in the way of bills, so the cut won't affect me too much. It beats unemployement!

[Radiance]

Similar to a pay cut was the situation I experienced back in my home country.
My Salary stayed the same, but it reduced its purchasing power by about 20% in less than three months and continued going down a little bit more every single month after that.

Basically you buy a carton of milk for $4, when it runs out, you go back to the store and pay $4.8 for the same carton, then $5, a higher price every week. Some Items, such as over the counter medicines would get daily increases.

It got to a point where I had to choose between the Water bill OR electricity, couldn't afford both. (I chose electricity.)

Here I have been lucky, no pay cuts, thanks God.

Forgot to mention: how did I reacted? With Humor!

[arthurb999]

I'd start looking for another job. I wouldn't want to work at a company that didn't have the wherewithall to survive a one year downturn...

[MonkeyMama]

My husband was furloughed in 2001/2002, and he took a 20% pay cut. But it also came with 20% more time off. He was able to keep his job 1-2 years more than otherwise. Reaction? Gratefulness. Back then, few companies were doing furlough. Most our friends/family were laid off those years.

That being said, we did not rely on his income at all. So are savings decreased a bit, but was still plenty. We also moved, so the smaller hours helped with the super commute.

Right now I am the sole breadwinner, and I think a "significant" pay cut would be tough. How would we react? My spouse would get a job. If we both had minimum wage jobs, we could pay all the bills. Maybe not save anything, but pay all the bills. That's kind of how we determine our maximum spending on obligations. We could both live with pretty modest jobs, and do quite well, overall.

In the interim I shoulder more of the load, and we'd have to cut back a bit. For the long run, I don't expect a pay cut to affect us much. This is precisely why we don't live up to our income. Life happens!

[Radiance]

Motivational

This is precisely why we don't live up to our income. Life happens!

I love this one! Will pass it on to my son:

Don't live up to your income, life happens.

Thank you Monkey Mama

[EEinNJ]

I make less now working for a very small company than I did 8 years ago for a very big one. Overall I'm happier being out of the big corporate world, and I make a comfortable enough salary. I pay a lot less taxes, too!

[wnlbutterfly]

I am looking at a pay cut this year, the school board decided instead of the pay system that has been in effect since the beginning of time for substitute teachers, to start paying us by the hour, and the rub is that the only way to not see a loss compared to year is to only work full days, otherwise, we are losing money. Bummer!

The only thing that is helping me is that I have a long-term sub position Nov/Dec that will pay better. But once that is finished I plan on signing up with some other school districts in the county that still have the normal sub pay rates and start branching out. Means stepping out of my comfort zone.

We are lucky in that with being a sub, I never know for sure how much I will be making, so we have never budgeted in my pay, all our bills are paid on DH salary, but it has been helping having my pay to lower our bills and work on that snowball.

[TBH]

I found out today one of my jobs will be reducing pay in 2010. I'm not sure of the extent of it yet. I'm lucky it's only one of my multiple part-time jobs, but still, it's scary to contemplate.