Categories
Wealth Work

Your Pay Just Got Cut: Now What?

Your boss just told you and your colleagues that you’re all getting 30% pay cuts.

What do you do? How do you react?

First of all, look at it from your company’s perspective. This was probably the better of two shitty choices.

If the company needs to slash costs in a recessionary environment it has few options and little time to make those choices. Often, an impending debt payment puts a hard deadline on the need for cash. Missing a debt repayment risks the life of the entire company.

A pay cut doesn’t mean you’re getting screwed.

Often, one of the easiest ways to free up cash is to cut salary expenses. To do this, a company can either cut headcount or reduce pay per worker.

While a 30% pay cut feels like you’re getting the shaft, it is actually a sign your boss is trying to save jobs.

It might work, it might not. But either way, keeping your job during the Covid-19 recession should be top priority. A steady paycheque keeps you solvent and it buys you time to build up emergency savings. It also buys you time to build skills, network and prepare for the possibility of eventual unemployment.

Longer job tenure means a bigger severance if laid off.

Another big upside to keeping your job is you retain tenure. A longer tenure means more severance if you are eventually laid off.

In good times, a 30% pay cut would send you immediately searching for another job. But in bad times, that would be a risky strategy. This is not the time to let pride drive decisions. Unless you’re independently wealthy, you still need an income to pay your bills and feed your family.

Quitting for a new job is risky because it means your tenure resets to zero. A company can have the best of intentions when hiring, but changing circumstances could force them into cutting staff (or salaries). Who gets cut first? The new guy – because it costs the company nothing in severance. A recession is not the time to walk away from job tenure.

A 30% paycut is usually temporary.

As the economy eventually normalizes, salaries should be returned to their previous level. If this doesn’t happen, then consider your options. But it could take 2 or more years until the labour market is strong enough to give labour a fighting chance. Until then, it’s a buyers’ market.

Job seekers today are competing against millions of other job seekers for jobs that don’t exist. This is not a labour market you voluntarily enter. So accept that 30% paycut, as painful as it is, because the alternative could be a lot worse.

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Categories
Life

Should You Put Up with Crappy Parents for Your Inheritance?

I recently had a conversation with a friend who has a real distaste for his parents. When he was a child, they were neglectful, selfish and abusive. As an adult, they’re still quite annoying. They’re much better than before, but still oblivious to their actions. They’re not abusive in any way today, but the scars run deep.

The funny thing is he’s not sure they even realize how their previous behaviour still impacts him decades later. Indeed, his parents are genuinely surprised he doesn’t gush over them 24/7. They rarely discuss his childhood, so he hasn’t made them aware.

Sometimes he feels like he wants to distance himself from his parents. Other times he thinks he should try to salvage what they still have.

He necessarily doesn’t enjoy time spent with them and finds it very stressful, so he wonders why he feels compelled to spend time with them. He questions his motives for maintaining a relationship with them. He knows his parents have money that he would eventually inherit, and wonders if this is the unconscious motive. Does he truly want to salvage the relationship or does he just want the payoff?

He doesn’t know the answer.

Is it morally OK to maintain a relationship with your parents for an inheritance? On one hand, I think it’s not fair to be dishonest with someone for personal gain. On the other hand, I think years of neglect and abuse deserve compensation.

Or maybe we all don’t measure abuse equally. Was what my friend experienced as a child perfectly normal? Maybe all parents are the same behind closed doors. It’s hard to get a baseline on the shitty parent quotient.

Below I have pasted a bunch of anecdotes from Reddit users who had crappy parents. These are probably the worst of the worst, because they all turned into physical fights.

I’m including these anecdotes because I think it helps set a level for what’s abnormal. Because it is honestly hard to know sometimes.

u/kander12

My father is verbally abusive. Has been my whole life. Earlier this year I was at my lowest, depressed, living unhealthy etc. Sought the help of my father, tried talking to him etc. He went off on me calling me a loser, a pussy etc and challenged me physically (ive always been too skinny or too weak in his eyes etc). This time I had had enough. Little did my father know I have been doing boxing and jiu jitsu for 4 years now. I beat the shit out of him in a very humiliating way, holding him in awkward submission and screaming at him whos the pussy now.

I have surely been removed from any wills (my dads loaded too lol) but I could not give two fucks. It was liberating. It crushed my depression on the spot and lit a fire lol. Totally worth the million bucks or so I lost down the line lol.

u/bernacusmax

I duked it out with pops one time. And it was a long time coming. He reached across the table and grabbed a leftover porkchop my sister cooked for supper the night before. He chucked it in the dogs dish. I had one little bite on the end of my fork…

He had been drinking since 8 a.m. and his excuse was that he couldn’t pick my mom up from work because of it. I told him I had a major assignment due at school and couldn’t. “I’m sorry, I can’t.”

His face turned red and he grabbed my food. I took the bite remaining and stared at my fork and.. I just boiled over. I launched the fork across the table like a ninja star. End over end. It hit him in the cheek and glanced off his glasses and it was on.

Up went the table and his chair fell over.

I felt horrible after all that shit. I didn’t want to fight him at all. But he was always bullying me somehow. I just.. had enough. The porkchop was the last fucking straw. He knocked everything over and cornered me so I couldn’t get out of the dining room.
He ended up like this guy. But.. fucking sad and drunk and sloppy and pitiful. I was disgusted it happened.

u/thegrizzlybearzombie

My mother used to beat the shit outta me my whole life. Would pull down my pants in front of my friends and spank me until I would cry in front of them to humiliate me. I was 17 years old and one day she tried to pin me to the side door by my neck, choking me. Something flipped a switch in my head. It was like when Darth Vader turned on the Emperor. I grabbed her face and pushed her back. Hard. She fell all the way down the stairs. I left and never returned.

u/zachfoxtail

I hated my real dad, because when I knew him he was a complete alcoholic asshole who ruined me and my brothers lives by never being there for us, false promises, and endangering both of us several times. I thought it was so objectively clear how fucked up he was because that’s the only side of him I really knew. Yet time and time again he would weasel his way back into our lives even after the divorce because my brother would fall for his charismatic charm and my mom would too. So I would play nice but every time be it a month or 6 months later it would always end in heart break for my brother and old wounds reopened for my mom. One day it occurred to me why it was so easy for them to want to believe he had changed, my brother was younger than me and when my dad lost his job I was already in school while my dad stayed home and bonded with my little brother while my mom went back to her old work from before she had kids. He had almost 2 years being my little brother’s main caretaker and source of fun, going to the zoo, eating dessert for breakfast you name it. Meanwhile i wouldn’t get him to the afternoon by then my brother was asleep taking a nap and he would pick me up from elementary school already a few beers drunk and not really take care of me. My mom on the other hand had years of him before he got like this that she remembers, literally almost a decade of him being a real stand up guy I wish I had gotten to know. So that’s why they would let him back in to break their hearts again and again, they both were hoping to see the guy they knew again.

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Categories
Life

Covid-19 Quarantine: Don’t Panic Buy, Prepare

With the relentless flow of Covid-19 coronavirus news, over the past 48 hours I have read a growing number of reports of panic buying across America and Europe. People are understandably scared of a quarantine and inability to buy groceries.

Some pics I’ve seen:

Personally, I haven’t witnessed panic buying but I have seen more shoppers buying party-sized packs of toilet paper. Even if it hasn’t hit the public consciousness yet in your area, there is a segment of the population quietly preparing for the worst.

I don’t want anyone to panic, but I also think it’s irresponsible to not prepare at all. By not preparing as individuals we could place a greater burden on public health and social services if a crisis occurs, diverting resources from more critical needs.

While I don’t suggest unnecessary hoarding, I do recommend stockpiling some extra non-perishable goods to get through one month of quarantine. Let’s hope it doesn’t come to that. But as we’ve seen elsewhere, things can go from normal to crisis within days.

By the time the panic button is pressed you’re shit out of luck. Store shelves will be cleared within hours. We haven’t even reaches crisis levels and Costco crowds are already putting Black Friday mayhem to shame in some parts of America.

If you’re reading this and you haven’t prepared at all, don’t worry. Take some action instead.

Here’s a list of items you should get to almost immediately prepare you for the worst:

  • Required medicines
  • Quick oats
  • Rice
  • Crackers
  • Peanut butter
  • Toilet paper
  • Honey
  • Feminine hygiene products

That’ll probably take care of most of your critical needs if you get stuck at home.

You won’t be running a 5 star restaurant but you won’t starve either. Treat this as a starting point.

As you make future trips to the grocery store to buy regular stuff, add a couple extra items for storage. In fact, you can just skip the trips and buy what you need online in the next hour without stopping your Kim’s Convenience binge. Genius.

In this just-in-time delivery world, society is always just 3 missed meals away from total anarchy. Covid-19 or no Covid-19, you should always have some sort of emergency stash of food in your house.

While I’m sure I sound like some nut job doomsday prepper, storing a little extra food was the norm throughout human history. It’s all stuff you’re going to use anyway.

Wealth isn’t just about money. It’s about resources, health, balance. So help protect you and your family by being prepared.

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