Not all companies in financial trouble are laying off employees. Many have taken the alternative route of cutting hours for current employees: they’re turning their full-time employees into part-time employees to cut costs. It works, too. Not only do employers have to pay less in the way of hourly wages when employees are working fewer hours, but they can also cut benefits packages if an employee drops to part-time status.

But if you’re one of those employees, hearing that you’ll be going to part-time status is not good news. You may not be in a position to immediately take a new job — there are still jobs out there, but you may not be able to pick up the right job immediately. You’ll have some time on your hands, though, and once you’ve updated your resume, you can put that time to good use.

1. Pick up freelance work in your field. Many employers are turning to freelancers to cover holes left in their companies by lay-offs. Because freelancers aren’t full-time employees, they’re cheaper — which you can use to your advantage to bring in some extra income.
2. Teach a class. Plenty of people are trying to avoid the recession by going back to school. That means that many schools need instructors in specialized fields.
3. Sell something on eBay. If you’ve been intending to eliminate some clutter from your home, you may just have the time to do it. No point throwing away anything you could make money on, though: put it up for sale and see what you can get. Craigslist, eBay, even a garage sale can be a good approach.
4. Take on another part-time job. Two part-time jobs don’t always equal a full-time job, but grabbing a second one can make your money go farther. Even if you’re just taking part in medical testing, you can take advantage of other job opportunities out there.
5. Start your own business. Plenty of solid businesses grew out of the Great Depression: when people didn’t have any work, they worked for themselves. You can do the same — grow freelancing into a full-time career, develop a business idea — whatever you choose. The important thing is to start putting in some sweat equity, even if you aren’t ready to put in cash.

Just because you are working fewer hours at your day job doesn’t mean that you’re in a bind. As long as you look at it as an opportunity, you can still find ways to boost your income. And if you’re concerned about stability or benefits, you still have the option of finding a new full-time job. Working a part-time job even makes it possible to easily keep working while on a job hunt — no trying to schedule interviews during your lunch hour — and most employers will be understanding about your search for a new job if they’ve just cut your hours. If you’re truly crucial to the business, they may be unhappy to see you go but they also may be willing to offer you incentive to stay: from maintaining your benefits package to bringing you back up to full-time status, if your employer really doesn’t want you go, they’ll take steps to keep you.

Popularity: 12% [?]

In high school I got my first paycheck — along with a rude surprise. I had worked 20 hours, at $7 per hour. I was sure that I’d be getting a check for $140. The check came in at closer to $100. But my teenage financial angst didn’t stop there: I owed my mom $20 for the gas to get to work and another $30 for the clothes I’d purchased for work.

For all my hard work, I’d really made only $50. My real hourly wage was only $2.50, at least for that first week. Because the clothes were a one-time cost, I got a ‘raise’ to $4 the next week.

My hourly wage, both official and actual, have gone up since then. But there’s still a major disparity between the two that is important to remember. Not everyone keeps a close eye on the difference and it can turn into a problem fairly quickly. When you’re looking for a new job, for instance, it’s important to be very aware of your real hourly wage, beyond the taxes automatically taken out. You might be offered a higher wage at a new job, but is it really that much of a better deal?

• Will your commute remain the same? Or will you need to pay more in transportation costs?
• Will you have to pay any costs to move your retirement accounts?
• Will your current wardrobe be appropriate? Or will you need to buy new clothes?
• Will you be traveling more, and paying for more calls home and other costs?

A new job can quickly turn into an expensive proposition.

It’s pretty easy to calculate your real hourly wage. Start with your actual annual earnings — you can make your calculations for shorter periods of time as long as you make sure that all your numbers are comparable. However, I do suggest making the calculations based on yearly numbers because there can be a lot of variation between weekly or biweekly pay periods.

Subtract your annual costs from your earnings. Even if something isn’t officially a work cost, you can still subtract it if you wouldn’t purchase it without your job. That includes meals out with co-workers, shoe polish and that one kind of pen you have to have but the office supply manager won’t purchase for you. The number that results is your actual income.

Divide your actual income by the number of hours you spent on work-related tasks. Odds are pretty good that you spend more than the standard 40 hours per week. Even if that’s what the time clock reads, you should include the time it takes to commute as well as anything else related.

The resulting number is your real hourly wage. Most of the people I’ve talked to look at that number in complete surprise — it’s often 40 percent less than what most people think they’re making. You can bring up your real hourly wage, however, without asking for a raise or changing jobs. It’s a matter of reducing the cost of working: you may be able to reduce your costs by making a lunch at home, carpooling or maintaining a smaller wardrobe.

Popularity: 17% [?]

Most of us don’t really worry that much about what Wall Street is doing. We get worried when the economy is bad because of issues a little closer to home, like losing our jobs. Employment is a big issue because we don’t always have that much control over it: for most people, an employer can simply say, ‘Alright, we’re done. Go home.’ If a business gets in trouble — or even just wants to cut costs — getting rid of a staff member is often the easiest approach.

Despite that fact, you can protect your career during a down economy. It may be harder to reach your career goals. It’s not impossible, though. While Wall Street seems to be working without a plan, you are still quite capable of making one.

1. Prepare for a job change

A lot of people tie their career goals to their current position in a specific company. The fact of the matter is, however, most employees will head on to greener pastures every few years. Rather than pining all your hopes and dreams on the company you currently are working for, you should prepare for — and welcome — a job change. Don’t change jobs just for the heck of it, but be ready to leap at a great opportunity (and get ready to be thrown).

• Fix up your resume
• Prepare a portfolio
• Read the want-ads (and send out your resumes)
• Freelance or consult
• Update your references
• Renew your certifications

2. Think about your career goals

Just as your current position isn’t your full career, it shouldn’t be the sum and total of your career goals. Where do you want to be in five or ten years? What projects do you want to complete? You may have a lot more options available to you: even if you stay with a company doing layoffs, your career is likely to change significantly as you’re asked to take on the responsibilities of your departed peers. If you’re one of those departing employees, you have a wide variety of career options available: even in a tough job market, there are plenty of opportunities to be found. Either way, though, you want to be sure your employment future meshes with your career goals.

3. Consider your current position

It’s time to take a good close look at your current job. Make sure you enjoy it — if you don’t, it might be worth considering any buy out packages or other deals your employer offers. If you do enjoy it, though, think hard about what you can do to make sure you keep your job. Is there a project your really need to wow the higher ups on? Is there a way to make yourself even a little less dispensable? Make the effort to shine at your company and your job is that much more secure. Even just attempting to stand out by telling your supervisor that you really want to stay on even if there’s a layoff can help guarantee your job for a little while longer.

Popularity: 19% [?]

There’s no question that, financially speaking, things are a little rough right now. The prices of food, gas and other necessities are going up, raises aren’t exactly forthcoming and credit is getting hard to come by. Just about every financial guru seems to be telling us to tighten our belts.

But what if you’ve already tightened your belt?

If you’re already living a fairly frugal life, it can be hard to find anywhere left to cut back. Maybe you’ve already cut back on all the luxuries, taken on a roommate and started brown bagging your lunch. Maybe you’ve gone over your budget, eliminating nights out, cable and new clothes. Maybe you feel like when it comes to cutting your expenses, you’ve hit a dead end.

Reducing your expenses is the fastest way to start saving money, admittedly, but it’s not the only way to get yourself out of a tough money situation. It’s time to explore other options.

Up your income

If lowering your expenses helps balance your budget, think about what raising your income can do for it! Assuming you like your job, the place to start is by asking for a raise: explain to your employer that you’re dealing with rising costs and you’re having trouble getting by. Many businesses are in tough spots as well, but if your boss likes your work, he or she will try to help, at least enough to keep you on the job. After all, it’s cheaper to give you a small raise than to hire an entirely new employee.

If your job isn’t so great, it may be time to go job hunting. You’re more experienced then when you took this position — you might be able to land something with a better paycheck. Taking on a second job might also be a possibility. Even a few hours stocking shelves can make the difference in your monthly budget. (And, if you’re working more hours, you aren’t out spending money.)

Consider striking out on your own, as well. You can start your own business after work — freelancing, crafting small items or anything else you can think of can be an opportunity. Entrepreneurship has the added benefit of flexibility. While a second job will require you to work specific hours, even when you really need a break after work, your own business can be run on your time.

Ask for help

There’s no shame in asking for help when you need it. Help doesn’t need to be monetary, either — maybe one of your biggest expenses is daycare. If you have help, like your parents, other family or even friends, you might be able to reduce the hours your children spend in daycare, and the money you spend on that service. This sort of help doesn’t need to be one-sided, either. You can trade all sorts of things, without bringing money into the equation. Either way, though, no one will help you out if you don’t ask.

Photo

Popularity: 39% [?]