I have not done it, but the .308 is generally considered an excellent candidate for shorter barrels. You will lose velocity, of course, but not accuracy.

To save money, however, I would suggest you sell the barrel you have (before shooting it) and get a used .308 to cut down. >308's will likely never wear out and can be had cheap. I bet you could get a sporter barrel for roughly $50 and sell what you have for $150.