How To Stay Happy In This New Economy
I refuse to participate in the media-fueled, hyped-up doom and gloom recession riddled new economy. For those of you who have no choice, read on. In this new economy, many have lost jobs, homes, retirement accounts, and some have lost everything. For these people, immediate action is required, whether it is to collect unemployment while looking for work or starting a business or going back to school. The point is, for these people, that which everyone seems fearful of these days has already happened. For this group, the fear should be over, and they should have already formulated a plan of action and be in the execution stage. For them, fear is over--or is it? Has the fear of losing a job only turned to fear of not finding one? Or that they may have to declare bankruptcy and lose the house or cash in the retirement account? A few years back, my employer went bankrupt, I lost about 50% pay and benefits, and my retirement was reduced by 75%. I was devastated, but once the shock wore off, I realized that having been living within my means, I might still be able to survive. I feared losing my job and lived through it mentally but I was never laid off. Now I know exactly what I would do if I lost my job now. I am completely at peace with the possibility that I could lose everything for whatever reason, and because of this, losing half my pay and my retirement was one of the best things that ever happened to me. I no longer fear "financial ruin" because I have learned that there is no such thing as "financial security." We must all adapt to the new economy to remain competetive. In the new economy, TV scare tactics aimed at those nearing retirement age will proclaim "don't outlive your money.' Personally, if I live long enough to retire, I'll have what I have and that will be it--I may have to be a Wal mart greeter, but so what? Nope, no such thing as financial security, not in the new economy. I had a six figure salary and "knew" it would only get better, culminating in a six figure retirement that I "knew" was coming. My 401k was strictly gravy. There was no need to contribute to it, but I did anyway. Then came the bankruptcy, and all these things I knew were coming were gone. All the while I knew my entire financial life was taken care of, and in the end it was all an illusion, an attitude. All I really had was my savings and my most recent paycheck. Even as I worked my current job, I looked for a second job or business as a backup, wasting a lot of time because I have learned to survive on my reduced pay, and to realize that everything is cyclical and impermanent. I have stopped looking for a backup because if I lose this job, I'll figure something out. I realized that living in fear when that fear might not come true is a waste. Right now I don't fear losing my job, but if i did, here is what I would do--not that you should, I'm just saying what I would do. 1. Actively look for a job while cutting off unnecessary expenses. Collect unemployment. 2. Use the six months salary I have saved for just such an emergency sparingly. 3. If after five months I still have no job, I'd start cashing in my retirement assets, and using these funds, attempt to pay off my house. if I could not pay off my house, I'd put it up for sale, maybe taking less than market value. I would NOT borrow money to live off of from anyone, especially my home equity or credit cards. 4. After paying off my house or moving into an apartment, I would take ANY job I could, and keep looking for a higher paying job with insurance in the meantime. 5. Having been a poor college student in the eighties, I know that it's possible to live VERY cheaply. At one point, with my one bedroom apartment rent paid through the semester, my dad stopped sending money. After eating off a french loaf and a half pound of cheddar cheese for a week, and drinking powdered milk out of a pickle jar, I decided not to call home for money--and I found a job bagging groceries. I lived WELL on about $48 a week, and I have no doubt I could survive on the minimum again. And so my drastic pay cut taught me that nothing is permanent, and today's situation does not equal tomorrow's, whether today's is good or bad. And here is one of the biggest lessons of all. Through the years, from $48 a week to six figures and back down, my happiness has remained the same. I was no happier making 100k+ than I was making $48 a week. Here's another tidbit. Last week I spoke with several homeless people as I handed them a copy of my book The Tuff Luv Guide To Happiness and a five dollar bill (I'm not a very good business man). Not one of them seemed any less happy than anyone else walking down the street. And though making good money and living in a nice house is great, I take comfort in knowing I can be just as happy pushing a shopping cart full of my stuff around if it ever came to that. I use that example to illustrate the extreme opposite conditions under which happiness can be maintained. I won't be homeless ever. At least not today. P.S. Don't get too attached to your current financial status. And don't be surprised if the new economy gets even newer one day, as in the U.S. government(due to impending bankruptcy) declaring the U.S. dollar null and void and giving you 10 cents on the dollar for the new and improved North American Dollar. This is strictly opinion based on a very imprecise hunch. Nothing more. Though we think this is a new economy, just ask your parents or grandparents who lived through the depression. They'll tell you this isn't new at all, and it could be worse.
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