I feel like crying

[kranky]

In the last month, I've gotten four phone calls from people I know who got laid off from different companies, asking if we were hiring. The fourth one just came this morning. They are all over 50 years old and had worked for over 20 years at their company before getting laid off.

It's breaking my heart to hear the desperation in their voices. They aren't getting temp jobs because they are too old (although that's illegal, good luck trying to prove it). And good jobs aren't easy to find anyway. Chances are their life savings will be eaten up while they find a new career (probably at a much lower pay), but at least they aren't going to lose their homes.

Except for one guy, who was always a big spender, had a very secure high-paying job. But the electric utility he worked for got bought by a bigger one, and they didn't need him any more. Over the years he's told me 100 times how great it is to work for a utility company because they never lay anyone off and never go out of business. And that's why he didn't see any need to save any money.

So after being out of work for eight months, he is going to have to sell his house to avoid foreclosure. He won't take a low-paying job because he can't stand the thought that someone he knows might see him and he's too proud. He's actually considering taking a night cleaning job at a Holiday Inn just because that would reduce the chances of someone seeing him. And all because he couldn't be bothered to save even 5% of the big money he made for over 20 years.

You have to set something aside. Hope you never need it, but you have to be prepared.

 

[hdeck]

sorry to hear that =/ hope everything works out for them

 

Yea, the market is brutal.

If you didn't play your cards right with your money, like countless people probably advised you to, you're probably kicking yourself in the ass.
Just goes to show that there are NO guarantees in life. Even as spoiled americans.

 

[Eli]

It is very sad, indeed.

My dad never planned for retirement.. Not really because he was a big spender, just because we always only made enough to get by comfortably, with not much to spare.

He's probably going to be working his tail off until the day he dies...

I am not going to make that mistake.

 

[FrontlineWarrior]

I don't like that utility guy's attitude.

 

[conjur]

Ayup...I realize now how smart my father really is.

 

[Nitemare]

Sorry to hear about your buds...

I think I read somewhere that the average American only saves 5% of his income....this is why they are so f0x0red when they get laid off.

Let this be a lesson to all those that read this post. Prepare for a rainy day

 

[TallBill]

My dad is like that. He has NO savings, and got laid off. And he wont work a 30-40k a year job. I dunno why but its his life. I barely see him anyways.

 

[AreaCode707]

That's so ominous to someone coming out of college too...

 

[Thump553]

Actually the average american's savings rate is less than 1%:

Savings rate

(towards the bottom of the page). I'm pretty frugal, but I would still be absolutely thrilled to be able to save 5% of my earnings. Right now, with kid(s) in college I'm way in the negative savings rate.

 

[ILikeStuff]

Wow, that sucks... his own fault though. NEVER EVER think you are not expendable. Always prepare for the worst and hope for the best. That's why I started sticking 10% of my income into my 401K. Been working full time at my job for the past 4 1/2 years and have over $10,000 stashed in there already (I'm only 26). No way I'm going to let myself die a pauper.

 

[BD231]

Big lesson for sure, without saving your pretty much relying on something you don't have, never a good idea.

 

[amnesiac]

A lot of people don't realize how much they need to put aside to save for their future / retirement / family / contingencies.

I like having a job where I get to explain to people how important those things are.

 

[imported_Tomato]

I know of people in similar situations... a few who lost their savings in the stock market, and have to start from scratch. 50 years old, with families... it's very, very sad.

 

[djheater]

My great grandfather said

"A man ain't no kinda man, if he cain't set aside ten cents of every dollar he earns."

I try to live by it, but it's FREAKING HARD.

 

[StageLeft]

Except for one guy, who was always a big spender, had a very secure high-paying job. But the electric utility he worked for got bought by a bigger one, and they didn't need him any more. Over the years he's told me 100 times how great it is to work for a utility company because they never lay anyone off and never go out of business. And that's why he didn't see any need to save any money.

So after being out of work for eight months, he is going to have to sell his house to avoid foreclosure. He won't take a low-paying job because he can't stand the thought that someone he knows might see him and he's too proud. He's actually considering taking a night cleaning job at a Holiday Inn just because that would reduce the chances of someone seeing him. And all because he couldn't be bothered to save even 5% of the big money he made for over 20 years.

Tragedy here is that he learned what most of us learn early on - but it took him many years to do so.

Lesson 1: Your job is not secure no matter what you think. It may be more secure than others but you could always end up not having it next month.
Lesson 2: Save up some freaking money.
Lesson 3: If out of work get off your high horse! I have no sympathy for somebody too high and mighty to work a low-end job because they're afraid people might see them.

 

[ILikeStuff]

Originally posted by: djheater
My great grandfather said

"A man ain't no kinda man, if he cain't set aside ten cents of every dollar he earns."

I try to live by it, but it's FREAKING HARD.

He was a wise, wise man I found it is MUCH easier to stick 10% into 401k rather than trying to save it any other way. By doing that I know I can't get my hands on it very easily

 

[MichaelD]

Good story, Kranky. It definitely is of the utmost importance to save for a rainy day/retirement. I only realized this myself about 6 years ago, at 28 years old. I've been saving a little every month, paying into mutual funds as well as my retirement fund...who knows whent he bottom could drop out of my world?

 

[djheater]

Originally posted by: ILikeStuff

Originally posted by: djheater
My great grandfather said

"A man ain't no kinda man, if he cain't set aside ten cents of every dollar he earns."

I try to live by it, but it's FREAKING HARD.

He was a wise, wise man I found it is MUCH easier to stick 10% into 401k rather than trying to save it any other way. By doing that I know I can't get my hands on it very easily

I put six percent in the 401k which I'll have to use for home purchase. Actually we discussed this recently. Althoug hconventional wisdom states I should leave it there, the truth is in my specific circumstances it's an equitable option.

The other 4 percent or so I try to keep liquid. That's the hard part, looking at your account and NOT thinking "well I can spend it now and make it up later, somehow"

must consume... must con...sume...

 

[ILikeStuff]

Originally posted by: djheater

Originally posted by: ILikeStuff

Originally posted by: djheater
My great grandfather said

"A man ain't no kinda man, if he cain't set aside ten cents of every dollar he earns."

I try to live by it, but it's FREAKING HARD.

He was a wise, wise man I found it is MUCH easier to stick 10% into 401k rather than trying to save it any other way. By doing that I know I can't get my hands on it very easily

I put six percent in the 401k which I'll have to use for home purchase. Actually we discussed this recently. Althoug hconventional wisdom states I should leave it there, the truth is in my specific circumstances it's an equitable option.

The other 4 percent or so I try to keep liquid. That's the hard part, looking at your account and NOT thinking "well I can spend it now and make it up later, somehow"

must consume... must con...sume...

Yeah, I have more stashed away in liquid forms, but it's often a bit soapy... it slips out of my hands pretty easily. I'm already a homeowner, so I'm not throwing money into the rental fire. Financially, I could be doin better, but I'd say I'm further along than a lot of 30+ year olds I know.

 

[vi edit]

It's reasons like this that make me feel better about putting away 30% of my income, and having 5 months worth "security" sitting in a nestegg in the event that something bad happens.

And my wife and I are only 22 and 25 respectively. I look at my friends and watch them blow every dime they make. But many of them don't even know what an IRA or 401k is.

You never know when things are going to take a turn for the worse. Plan ahead and be prepared for the worse. I hope that many of your aquaintances have children that are out of the house and on their own. It's a terrible situation as it is, but it is even worse when a child has to suffer for the poor planning of it's parents.

 

[Piano Man]

My dad's business went bankrupt this year. He is 58 and has no shot getting hired anywhere else. He got swallowed up by the big boys(Super Walmart, Super Target). That plus people aren't spending as much.