2008 is a year that many people want to forget. It was the year the whole world realized that they are in recession. From Iceland to USA, job losses are at its peak as more businesses tank in the face of recession. The increasing rate of unemployment in the country has triggered a chain reaction which was felt not only in the country but worldwide.
Every industry has been affected by recession which was even triggered by sub-prime mortgage crisis. The increasing interest rate coupled with increasing unemployment has taken its toll in many individuals. Many properties were foreclosed and many people have declared bankruptcy just to get financial assistance.
This year, the country looks to rebound from recession with the new administration. But rebounding is a lot harder today. Jobs are still available for those who have education and experience which should be enough to pay for the daily expenses.
However, the jobs available today are not the same anymore. The job that you had is not available today. That could be ok when your new job would have the same pay. But because of today’s economic situation, you would have to deal with lower pay. Some even reported a 70% decline of their monthly earnings. This could be devastating since the old lifestyle may not be supported anymore.
You could easily experience this situation if you have been earning a six-digit annual salary last year. Businesses have to cut their losses and they never hesitate to terminate employees even in the managerial position. The worst part is that no one can really prevent this from happening because there are external and uncontrollable circumstances that suggest the future of your company and your career. Many are forced to this situation because the rising unemployment rate has got everyone panicking.
Adapting to extreme pay cut is very difficult especially if you’re not ready for the change. But the challenge in dealing with extreme pay cut is basically on your psyche. If you think you can’t handle the extreme pay cut, living will be a lot harder.
The good news is that extreme pay cut is not an option. You will be forced to deal with extreme pay whether you like it or not. Some say this is a bad thing since you will be forced with your new financial situation. But you have to take a look at it in this perspective: since money is scarce right now you have to deal with extreme pay cut no matter what. Sure this would be difficult but the mere fact that you have to deal with it is already a good thing.
One thing that you will immediately realize when you experience pay cut is that many things are not really suggested by money. Before the pay cut, you could afford a weekend vacation in nearby resorts with all the perks you could imagine. Today, a good idea of a great night is when you can rent a good movie and enjoy it for the night.
During these times it is also important to realize the importance of people around you. Everyone is having trouble in coping up with their finances. Facing these troubles alone is very difficult since you can easily feel helpless because of the lack of assistance. But when you band together, everyone can help everyone.
Even just the idea of being there will provide great emotional assistance. Recession is not yet over. Everyone still has to deal with job losses or extreme pay cut. As long as you enjoy simple things and appreciate the help of everyone, recession could just be another learning stage.