Unless, in an act of desperation, you’ve locked yourself in a room without TV and internet to force yourself to finish your thesis or dissertation, you’re probably aware that we’re in the middle of a global financial crisis. Banks have failed, companies have been forced to make layoffs, and interest rates have plummeted. In short, the global economy is not good right now.
Like everyone else, I’m constantly bombarded by news coverage of the latest catastrophes in the financial world, and while it’s great to know what’s going on, a lot of times it’s hard to relate to the stories. Unless, of course, you’re a multi-million dollar investor who fell victim to Madoff’s Ponzi scheme, but if you’re a multi-millionaire, why are you even reading this blog?
Anyway, what I’m interested in exploring is how the global economic crisis has affected our everyday lives? You know, the lives of regular people like you and me, not the CEOs and other top executives.
For me, the impact of the global financial crisis has been surprisingly small. I consider myself extremely fortunate to have landed a full time job last year before the economy really started falling apart. Also, it’s a lucky coincidence that what I enjoy doing (my job) is in a “recession proof” industry (knock on wood). The most painful experience has been watching the balances of my Roth 401(k) and Roth IRA take a nosedive, but even though it hurts now, it’ll be fine in the long run because I still have a few decades before I even touch that money.
On the other hand, I know that not everyone has made it through this financial crisis unscathed. One of my cousins was just laid off from his job last week, so he’s now unemployed. The global financial crisis has definitely left a big impact on his life.
How has the global financial crisis affected you?
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Big fan of the blog – have to say!
I was fortunate enough to find myself in the same predicament as you. Landed a job last year right before things went south after picking up and moving across the country for the “experience” and leaving a perfectly good job at home. I count my blessings that I have a good job that I like in the best state economy in the US, Texas. They’re creating jobs here and because of tax breaks, businesses are relocating here in droves.
Very fortunate that my move to Texas has yielded such a great ROI, all things considered of course.
twitter: MPJoyceII
Personally, this crisis has not affected me much, the only thing is trouble finding a full time job, I do work part time but need to make more money.
I was able to actually become debt free, so that was a huge relief.
Luckily for me, I have not been affected by the economic troubles. I am currently attending Lawrence Technological University in Michigan so, I am still increasing my debt trying to pay for school. Thankfully though, I am keeping debt relatively low.
Like the blog, keep up the good work.
Being a recent grad out of college and having minimal income to begin with, the economy hasn’t personally affected me as I am still employed.
Heres how the recession has gotten to me.
There has not been a direct impact on my bottom line, but I’m sick of every conversation at work being about the economy. I’ve become the little hermit at work because I refuse to talk about the economy. Everyone has an opinion but not one of them even understands the basics of what is going on. I used to love talking about the economy, but now it’s just another thing for two idiots to fight about over the water cooler.
Thankfully, that isn’t a huge deal, I know things could be a lot worse.
Not really… Being in grad school helps =)
I had a few friends who’ve lost jobs =( and I think it’s harder for some departments to get funding…
I doubt housing will take much a hit in a college campus… which is really annoying.
The only other thing I guess is less free food.
That and I guess news is more sad and more funny/ridiculous things are occurring.
I just wrote a similar M post.
It really hasn’t affected me much because I was pretty careful with my money to begin with. In fact the only difference I see is that now I want to learn more about the economy.
I’ve talked a couple of times about the fact that apparently being poor is the way to go in a crisis. Since my husband was already on unemployment and I am on disability/doing some part-time contract work, we haven’t been much affected.
That said, it may be increasingly difficult to for Tim to find a job, and his unemployment benefits are running out… So perhaps we’ll feel the effects after all.
How has the downturn affected me? Well, I was downsized in November, but that’s as likely a result of my company’s specific problems as from the wider downturn. Getting another job has proven difficult, which is another problem with this current economic climate. So far, I’m not broke, but getting closer every day, sadly.
My poor Roth IRA has lost two thousand dollars or so… Other than that, I agree with the other comments — I was already spending very little, so I’m going to keep spending very little.
One of my friends recently was turned down for a student loan (only $5,000) and she says the reason must have been the economy, not her credit. I’m worried that it’s true; I’m going to need student loans in about a year.
I’m still working, but barely. Our numbers don’t look so good. My unemployed friends outnumber the employed ones. I’m helping out my unemployed sister every month. I took out a loan on my 401k yesterday to help out my best friend who just got laid off, her cancer came back, and insurance won’t cover chemo because it was a pre-existing condition. My $5k emergency fund I built up last month is now gone. I may put the house up for sale. Next month’s net worth blog post is gonna suck.
Luckily, I went back to grad school before the crisis hit, so I have not been affected very much by it. My previous job was decimated by the crisis though, and the company I worked for is teetering on the edge.
While in school, I have lost a part time job due to the crisis, but that job was more of a way to kill time and earn a few extra bucks. My livelihood has not been affected that much yet.
(Posting my comment here and on Brazen
Hey – it’s a great question. My heart goes out to people in really bad situations – house in foreclosure, lost their job, working as a janitor to get by instead of pulling a six-figure salary.
The reason I like your post so much is because it acknowledges that ALL of us are probably feeling pressure and some amount of stress or unease because of the financial crisis, even if we aren’t in the hardest hit group. For example, I feel more inclined to ignore how I’m really feeling about work – I just brush it off with, “well I’m thankful to have a job.” But that’s never been my mode of operating before – usually I am much more proactive about fixing situations.
In general the people I know feel more stressed, like they are being asked to do more with less, and generally like every day is a fight to keep your job with the anxiety that there are no guarantees.
The best perspective I heard on this recently was that working through a contraction in the economy (and making it) is a badge of honor – that it will build maturity and give us a more holistic view of the boom and bust cycles of the economy and of companies. I think it’s particularly important advice for all the Gen Y folks, many of whom haven’t ever had to deal with anything like this (present company included, of course).
Okay – I’m done with my essay.
Great post!
I still have a job.
I still have a place to live.
I still eat my yummy food everyday.
I can still feed my cat.
I can still go out with friends (with help from my BF-I couldn’t afford it before)
But my lessons had a noticeable impact. I lost three students because their parents were laid off. That could have been almost $300 more in my pocket.
In order for me to save more money I had to get a part time job (I have a goal to buy my first car thats over 10K).
I do notice about every other month I have to use some ‘emergency’ money to pay for extra expenses whereas before I had the extra money.
This past fall I did overhaul my budget, only to find out that I was already living on the bear minimum (with an occasional pedicure). So that didn’t do me any good to save more money.
At work, I avoid talking about money. People are just complaining and it ruins my mood. I also want to save more instead of spend more. (I think the car has something to do with that).
My poor net worth has plummeted as a result. But whose hasn’t, right? I’ve watched my industry downsize quite a bit; luckily, I haven’t been nailed for a job loss yet.
I am still in school and still working but am now getting less shifts. How has this affected me? More time for my studies and my blog. There’s a positive spin to everything in life.
I work for a homeless shelter, probably one of the more progressive ones in the country considering all the services we offer our almost 200 guests, where donations have usually been pretty steady. We have a small but not insignificant staff who get very good benefits, and our salaries are probably higher than most other shelters, again, given the services we provide and our level of collaboration with other agencies. This year has been tough, though. Donations are a all-time low, with the reality of cutting several hundred thousand dollars from our budget standing right in front of us. Several people are leaving on their own volition because they have other plans (grad school, etc.), and their positions are not being replaced. Plus a 5% pay cut across the board, a mandated furlough day, and frozen 403B account. All in all it could be worse *knock on wood*, but for people who don’t make a lot to begin with, we’re definitely feeling it. The good side is that we’re becoming much more creative and looking at some great, innovative ways of servicing our guests which hadn’t occurred to us before. I guess I’m just trying to be optimistic
In the words of LoTR:
Frodo: “…I wish none of this had happened.”
Gandalf: “So do all who live to see such times. But that is not for them to decide. All we have to decide is what to do with the time that is given to us.”
The effect of the economy is basically it encouraged us to increase the size of our emergency fund from 3 to 6 months. We’re achieving or main goals step by step and we’re planning on reaching them.
My biggest hurt has been the fact that my employer cut their 401(k) matches from 6% to 3%. But, if that’s all that I have to worry about, then I’m not too worried. I’m thankful for the job, even though I realize sometimes I take it for granted!
I feel that recent grads and students aren’t getting enough attention in this tough time. I graduated Dec. 07, had a great job at an ad agency but decided to go into the Peace Corps. Unfortunately, I didn’t like it and decided to leave, not a risk I had thought of before. I came back and the next day we were in the mist of financial and mortgage issues!
I moved to SF in November and have been job hunting since. I am working part-time in retail…not something I thought I would be doing. It is frustrating that I have a degree yet I make $10/hr and fold clothes for a living. There has got to be more than this right?!
Oh yeah, and just for numbers sake. I had an interview last week and my resume was 1 of 700!!!! How is a recent grad supposed to compete with those who have 3+ years out of college…