It doesn’t seem as though a day goes by that the news doesn’t go from bad to worse. The latest news is that police forces throughout England and Wales have not met their target goals for cuts in their budgets by as much as £500 million. This, in turn, will result in radical cuts in police by as many as 16,000 people. Some estimates say that 24,000 police officers will be cut in just those two countries alone. However, the public sector is not the only area that is experiencing problems.
More and more workers are being made redundant which has caused the number of contractors and freelancers to rise significantly. In fact, contracting has become a way of life in the UK. It is either that or go bankrupt as jobs are hard to find. This is where many consumers need to find ways to make ends meet while they are establishing themselves in the business world. Workers can no longer count on consistent pay because contract jobs may be sporadic.
It is imperative to learn to budget money better and not to be caught up in the same patterns of spending as you had whilst working at a 9 to 5. Of course there will be other changes which you will need to consider when working as a contractor but first and foremost is in the need to budget money knowing that pay cheques may be intermittent. In fact, many freelancers get paid a portion of the contract job in advance and the remainder upon completion.
Indeed, contracting has become a way of life but budgeting hasn’t yet caught up with it. It will take some getting used to but with a little diligence you can learn to handle your finances in between jobs. Simply realize that it will take some time before you have the luxury of excess disposable income, but that too will come.