Take this Job or Shove it

[Kaos Kitty]

Interesting stories from CNN Money called "Take this Job or Shove it". It's about people who had to downsize from a high paying job and take a lower paying one to get by. I found myself shaking my head and wanting to shout out to them "Why didn't you save any money?"

But I'm sure they're saying the same thing to themselves now. For many people when they're spending money, they think life will always be this way or better. That there is no way they can cut costs. But when they're forced to - somehow they find a way to get by. If only they had made the changes before they lost their jobs, and saved a bit for a rainy day.

Here's the link: (just copy and paste into your browser)

http://money.cnn.com/galleries/2009/pf/0901/gallery.layoffs_and_salary_cuts/index.html

[Jskell911]

Sounds exactly like what my grandparents went through when my grandfather's company moved to Japan. They went from him making $70K a year to $35K. But they survived and learned to do what they had to. Of course they lived like they were making $70K and had no savings, but ..... Well very similar.

Thanks for sharing

[rowdy35]

Sometimes you can't see into the future. I know a few years back I was making a great salary and now I am not. It is really tough to adapt. I did save and contribute to an IRA but I didn't ever foresee taking a drastic pay cut. I guess I was ignorant but boy did I learn how to cut back on expenses when this happened. I'm still trying to get back up to my 2005 salary and I really don't see it happening any time soon. Therefore I have learned how to be UBER FRUGAL.

[Ilovesewing]

Part of the problem when you're making good money is you don't realize how good it is -until it's gone. This happened to me at my last job. I was making great money with great benefits - stock options, pension, 401K, tuition assistance -and then got laid off. I got a nice severance package.

Then I started looking for a new job, but wanted part-time which is hard to find. I found the job I have now but it sure doesn't pay what I used to earn. Now I look back and think 'wow, I was making really good money then!' But at the time it was just money.

I've always been frugal so being laid off and the pay cut didn't hurt us - we just couldn't spend like we used to.

But this is the exact reason I'm saving money now instead of paying off debt until we know if dh will lose his job this spring. Money makes the world go round. You can't do much without it!

[pollypurebred39]

I did not see this on CNN, however I have a GF whos husband is working for a major car (foreign) on the tech staff. He flies all around the world and fixes their computers. Anyway, about 5 years ago they had a major shake up in that department (maybe other departments too, I don't know) he was told that he was more than welcome to stay with the company but that he would have to to a 30,000 a year pay cut. They explained to him that there are college kids who are willing to take his position at entry level salary and top out at $30,000 for their career, so they were really doing a big favor to the tech guys who decided to stay. He checked out the market and ended up staying with the company. Now that same company has said, oh by the way we are moving to NC and if you want to keep your job you've got to move to NC. Of course again, he decided to stay with the company even though he is finding it an impossible selling market for their home here.

And recently I was in a salvage food store and I had a conversation with a women who was telling me that that past week she and all the other full time employees(from our local food store) were called to the stock room for a meeting. They informed the full time employees that they would be full time no longer, their hours were to be cut drastically, there would be a 30% pay cut AND they have lost their health care benefits. If they were not happy with the changes they could consider this their last day!

In both of these situations yes, you could save money, but how much do you need to save? how long to you need to stay afloat? Till the enocomy recovers? What if it recovers and levels off well below a wage where people can support themselves? I don't know that one can save enough for that.

At this point our oldest is going to school and working as a manager for a pharmacy. He does not make enough to move out and support himself, even though he works full time. Even when he finishes school his pay will not be much higher. I think that there is a very real possiblity that we will have to turn our downstairs into an apartment for our son and his future wife and kids. I think our youngest may end up having his family in our garage that has been turned into an apartment. I think things are changing and I expect that extended families will be living together out of need instead of want. Years ago you had several generations of famlies that lived together, I expect to be seeing this more often.

My GF fully expects her son, his wife and their children to be living with them very soon. His pay just can not cover their modest housing. My Sister has a grown son and his child living in their home because between the cost of child care, housing and food he is in the hole every month. Instead he contributes to their household. It is cheaper to house many than live alone now a days.

[Kaos Kitty]

I hope everyone that has reduced hours/pay or experiences a job loss finds a way to make ends meet. Some people will have to make lifestyle changes (like many of us at Frugal Village!) and I agree, multi-person/generational households that are the norm in other countries, may become normal for North America too.

It wasn't that long ago that I was in debt with no savings. I was just lucky to "wake up" and make changes before it bit me too hard in the a**!!

Having been through it, I find inspiration in these stories of difficult times. I am more thankful for what I do have - in the now. I've just been given a chance to move from my part time job to a full-time job. Between finishing my degree, part-time work and taking care of the household I might have said no. But reading about the hardship of others makes me realize that I have to take the opportunities I have to save some money for the future. Even if it's a bit more work than I would ordinarily choose to do!

So for all of you already having a hard time, God Bless. And for those of you who are still okay I hope you take some inspiration, as we all make changes together to get ready for the difficult times ahead.

[Momto2Boyz]

Back when I was working, (and making 6 figures) I was the "bread" winner. We lived well, but within our means. I had finally bought the "car of my dreams", but other than that, much of our money went into savings or into thin air (high grocery bills, eating out, etc. things you do when time is short).

When I got laid off, we went from making over 6 figures to about $30K a year. We thought it would be a huge shock to our system of life, but it wasn't. The only thing dragging us down was the large car payment I had on my mustang. So, at that time, we sold the mustang, and since I was a SAHM, there was no need for another car. We lived quite comfortably on that until DH lost his job and had to find another (which came with better benefits, and better pay).

The funny thing, is we are still living quite comfortably, and probably still living on below $30K per year for our family of four. We still have plenty going into savings each month.

I think we are daily aware that DH is lucky to have a job and it while his job is pretty safe from lay-off's, that doesn't mean much and it might be gone tomorrow!

[The Muse]

This is why DH and I still live like we did when we were making 1/3 of our current salaries. We've always known our luck can change at any second. I hope for the best and prepare for the worst.

[Marie78]

We live fairly well right now and we know that things can change at any time, so we put any extra money into savings each month. We just live on as little as we can afford to and the rest goes to paying down the last of our debt and savings. If we had to we could get by on one of our incomes, it would be very tight with no extras at all. I'm sure it would be temporary until the other one could find at least PT work. We would want to make sure we were able to live and save some money and that would require more than one of our salaries at this point. Once Dh has finished his PhD we hope to live on just his salary, that way I can be home all day for our children and continue to make sure we live well within our means.

[fixer]

Back when I was working, (and making 6 figures) I was the "bread" winner. We lived well, but within our means. I had finally bought the "car of my dreams", but other than that, much of our money went into savings or into thin air (high grocery bills, eating out, etc. things you do when time is short).

When I got laid off, we went from making over 6 figures to about $30K a year. We thought it would be a huge shock to our system of life, but it wasn't. The only thing dragging us down was the large car payment I had on my mustang. So, at that time, we sold the mustang, and since I was a SAHM, there was no need for another car. We lived quite comfortably on that until DH lost his job and had to find another (which came with better benefits, and better pay).

The funny thing, is we are still living quite comfortably, and probably still living on below $30K per year for our family of four. We still have plenty going into savings each month.

I think we are daily aware that DH is lucky to have a job and it while his job is pretty safe from lay-off's, that doesn't mean much and it might be gone tomorrow!

This is why DH and I still live like we did when we were making 1/3 of our current salaries. We've always known our luck can change at any second. I hope for the best and prepare for the worst.

These two posts are a great example of how we have lived. When I was a full-time student, we were literally counting our pennies. After I graduated and got a job, we still lived that way. After giving some things up, we realized that we did not miss them. We used to eat out and buy books and music. We just never went back to that lifestyle. Even though both our salaries have been static the past few years, we have been able to deal with price increases due to inflation. After school, I got a job that allowed me to work almost unlimited hours. That was very appealing the first few years. I worked every holiday except Christmas. For a twelve hour shift, I could bring home six hundred dollars. After a while, I realized spending time with my wife was worth more than anything. Since we had saved money and not changed our lifestyle, I was able to work more normal hours.