I was watching CNN Money while on the treadmill the other day and a certain headline caught my attention, the screen read: Corporate Executives work lower paying jobs or something to that affect. So I started to listen intently and the story was about a man who used to be an executive who had a high volume income as most executives do but is now making ¼ of what he used to make. He now works what was called a “regular” job; I don’t know maybe an average paying job is considered a regular job.
What caught my attention was not his story but the advice that the financial person gave this used to be executive. Here is what she told the executive his choices were at this point:
1. Increase your income. Either by looking for a higher paying job of doing some consulting work.
2. Cut your lifestyle.
3. File for bankruptcy.
I think you know where the advice struck a nerve with me. I love the advice she gave him until she told him to consider filing for bankruptcy. Here is an ex-executive that built a lifestyle around his high paying salary being told that he should consider bankruptcy. I’m sorry but whatever happened to getting yourself in a mess and working hard to getting yourself out. Everyone wants a personal bailout these days and it’s going around like a disease.
What I learned from the conservation is what I hope many others also learned. No matter how much money you are making, always consider the risk of you no longer having a job. Having an emergency fund of 3-6 months of expenses like Dave Ramsey says. Better yet get your family out of debt and live a debt free life. The best advice for families is to live on one income and save the second income for rough periods as the one we are in now.
