Suze was on Larry King yesterday, and a caller asked her if the recession had been a teachable moment. She punted. She said it wasn't fair so many innocent people were suffering, blah blah blah. In the end, she agreed it was a teaching moment, but didn't say what we learned.
The recession has been a GIANT WAKEUP CALL for me.
I honestly believed that with my super elite education, I was bulletproof. I thought I would always make more than 150K. I believed I would always have a secretary and window office and a charge card for $300 lunches. I deserved it. I earned it.
When I got thrown on my butt, it shocked me to the core. I had never had to go to Plan B. My Plan A never failed. I never failed. I am not sure I will ever recover from my lay-off. And by that I mean I will never think the same way. I wouldn't say I was ever careless, but I thought emergencies would be temporary blips like illnesses. I didn't think that the whole system could collapse under me.
I learned to live FAR below my means. I learned means can change. And when we were looking at a 500K house with what is currently a very manageable payment, I balked. Because things change.
I'm stronger, more skeptical, tougher. I don't rely on anyone to bring in my bacon. I am always on the lookout for other jobs. No loyalty. I have to look out for me. I now live with a backup plan. There always have to be a backup plan. That's why a 500K house requires a lot more than we currently have. It has to be manageable on Plan B.
What has the recession taught you?
Friday, December 11, 2009
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7 comments:
I think the biggest change as a result from the recession is increasing societal acceptance of living modestly. Either by choice or not.
I used to save less money before, and the recession was a wakeup call. I have a job and am somewhat secure, and seeing so many people out of work has been humbling.
This is the 3rd financial collapse I've experienced. And I don't think it will be our last.
The 1st was in 1987 when the stock market crashed. Lost everything.
The 2nd was in 2000-2001 when the dot com bubble burst. Lost everything.
The 3rd time was a charm. I learned from #1 & #2 that THEE most important thing was to never, ever be in debt. So, this #3 Great Recession went very smoothly for me and my family: no debt, no bills, no mortgage, car loans, charge cards and ample savings in a bank (no investments in Wall Street)and living life on a cash-only basis was the only way to survive. I learned well from #1 and #2.
Hopefully, others will have learned also from the Great Recession of 2009. Set up a Plan B, but make sure you have a C and a D waiting in the wings. Ask yourself 'what if' questions and plan for the worst but expect the best.
You'll be fine.
The recession has taught me to be thankful for my job. Even on the bad days I am thankful. I was already living below my means but now some of my friends are doing it with me :)
I'm the same way. I didn't have a high status job like you (in fact, I worked as a nanny), but when I lost it, I became really dedicated to living below my means. Now, I wonder what I did with all that money, because I sure don't have it now.
We are all marked for the rest of our lives by what happens in our twenties. For me, it meant coming of age during the summer of love. Money was the last thing on anyone's mind. Vietnam, communes, and the feeling that we could impact politics in a major way changed all of our lives in ways both good and bad. But it saddens me to think that coming into adulthood during a recession might make a person more selfish, more concerned with money, less compassionate and less political. I hope that over time, your viewpoint will broaden. Actually, I hope that eventually, your current job helps with that.
@ Grace. I think that's a fantastic point. People who didn't care much about money were forced to when they were thrown on their butts. It's now OK to talk about money. It's the biggest deal for everybody.
I absolutely think it will make my generation care about money and to be less reckless than Gen X.
I really like this post -- the tone is reflective and humble. The recession taught me a few things
1) job security is an illusion, even if I didn't get laid off.
2) If I were to be laid off, it would BE OK and I would be able to figure something out, even if plan B and C failed. I don't need plans A-Z
3) Living below my means wasn't crazy, even if friends didn't always understand it.
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