pay cut at work

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Originally Posted by madRiver
Originally Posted by Jarlaxle
Originally Posted by Nick1994
It really blows my mind how the businesses have doing so good for so long and got tax cuts, economy was booming, yet they don't have any cash set aside for even a short amount of time to operate and hold their heads above water.


How many businesses can survive weeks (or months) with ZERO income? Bills still rolling in, no revenue.


Cruise lines idle like Carnival and burning their cash. Same with the AMC movies.


I would not be even slightly surprised to see AMC Theatres go under-they were in some trouble even BEFORE this happened.
 
I hate to sound like the BITOG old man, but I don't understand why people still go to the movies anymore. With as big, cheap and great as TVs are along with surround sound systems, why spend a fortune to sit in a germ infested theater while people around you text and annoy.
 
Originally Posted by dishdude
I hate to sound like the BITOG old man, but I don't understand why people still go to the movies anymore. With as big, cheap and great as TVs are along with surround sound systems, why spend a fortune to sit in a germ infested theater while people around you text and annoy.


Well the screen in the theater is still bigger than any TV you can buy at home and the sound is usually better. Plus when the movie comes out, you can't see it on the TV for a while. AMC also had $6 Tuesday so I'm not sure if that qualifies as a fortune. The germs that were there before weren't as deadly as the one out now.
 
According to the interesting article linked below, I have survived 9 recessions. God willing, I plan to not only survive this 10th. one, but move forward afterwards, like I did the first 9 times.

I was just one year old during the 1957 recession that included the Asian Flu pandemic that killed 1.1 million people. The first recession that really impacted me was the 1973 oil embargo recession. Waiting in line to get gas before a high school date (now wife) was a real hassle. It influenced my first car purchase, an early '70's Opel Kadett that got a whopping 21 mpg. I opted to delay college one year to work and earn tuition money. Even with high unemployment rates, upon graduating high school I had numerous job offers in the local steel mills and factories of NW Indiana. Brutal work conditions, making equivalent of $35/hour today right out of high school. I finished college (working) debt free - different than today's situation. I hunkered down and survived.

The 1981 recession affected me the most during my early 20's. Near 11% unemployment, the industrial rust belt was hammered. I remember Michiganders boarding up homes and moving south for work. Michigan's dependence on auto manufacturing was devastating. My job position was eliminated. Wife was 4 months pregnant. Absolutely no jobs available in the Upper Peninsula. We sold our home and moved 200 miles south to take a position replacing 2 retired people. My reputable work ethic saved my butt. This move caused me to seek professional counseling to survive the trauma. We hunkered down and not only survived, but the move opened up advancement opportunities and encouraged me to "man-up", for lack of a better word, in all aspects of my life. I credit the challenge to causing me to become a better person. Had I stayed in the U.P., I probably would have remained a "mouse" of a person to this day.

Read the link below. In every case, our country survived and grew afterwards. Learn to be self reliant, no matter what it takes. I.E., if needed, I could survive by hunting and gathering. Ditch those expenses and lifestyles that really are not necessary: expensive cell phones, expensive television plans, expensive transportation, Starbucks, and on and on. Nose to the grindstone has worked well for me the past 55 years or so.

Best wishes to everyone. Become a survivor. Life afterwards can be even better if you challenge it. https://www.cnbc.com/2020/04/09/what-happened-in-every-us-recession-since-the-great-depression.html
 
People go to movies the same reason they go to sporting events, concerts, plays, hikes, races, the zoo, whatever - for the experience you don't get watching television.
 
Originally Posted by Jarlaxle
Originally Posted by Nick1994
It really blows my mind how the businesses have doing so good for so long and got tax cuts, economy was booming, yet they don't have any cash set aside for even a short amount of time to operate and hold their heads above water.


How many businesses can survive weeks (or months) with ZERO income? Bills still rolling in, no revenue.

Because they have been raking it in and either buying back their stock to inflate it's price and/or pocketing the higher ups. So I guess that's where it's gone.

It's exactly like asking a person how they can survive with zero income. Some can, some can't. If I lose my job for 6 months I'd be ok. Some of my coworkers? No can do.
 
I'm squeaking by on 40-45 hours a week at a class 3 railway.
Thankfully I have a pension from 39 years at a class one, plus CPP & OAP.

The railroads are a barometer on the economy, and still going full tilt.
I remember one day in 2008 when the rail traffic was cut in half overnight.
 
Originally Posted by Nick1994
Originally Posted by Jarlaxle
Originally Posted by Nick1994
It really blows my mind how the businesses have doing so good for so long and got tax cuts, economy was booming, yet they don't have any cash set aside for even a short amount of time to operate and hold their heads above water.


How many businesses can survive weeks (or months) with ZERO income? Bills still rolling in, no revenue.

Because they have been raking it in and either buying back their stock to inflate it's price and/or pocketing the higher ups. So I guess that's where it's gone.

It's exactly like asking a person how they can survive with zero income. Some can, some can't. If I lose my job for 6 months I'd be ok. Some of my coworkers? No can do.


It's like you have no idea how small margins are for many businesses... (If a restaurant makes a 4% profit, that's good.)
 
A short while ago they were saying one out every 20 Americans were millionaires, which I found interesting. Now people are going bust, some in less than a month of no work. I'm sure there are some trying to scam the system too. Sad.
 
Maybe 1M in combined net worth (assets) + all their debt (mortgage, cars, credit cards, etc...) + retirement accounts = 1M

BIG difference between 1M debt free net worth and a hypothetical 1M of combined assets.

That 1 in 20 number is waaaaaaay off. Housing crash and major recession will deflate lots of people's hypothetical millionaire status.
 
Originally Posted by Mr Nice
Maybe 1M in combined net worth (assets) + all their debt (mortgage, cars, credit cards, etc...) + retirement accounts = 1M

BIG difference between 1M debt free net worth and a hypothetical 1M of combined assets.

That 1 in 20 number is waaaaaaay off. Housing crash and major recession will deflate lots of people's hypothetical millionaire status.



Exactly!!
thumbsup2.gif
That's my point, the number back when the market was near a peak was still way off imo. IIRC they were referring to liquid assets, [cash, stocks, bonds, IRA, 401K, etc. not including their house] back when the market was within 10% of the high. Either way seeing how many people are going bust or soon to go bust makes that number look even more ridiculous now.
 
My wife and I are both being offered OT. In my case, pretty much unlimited OT. I have been working from home and it's shocking how little money I spend when I don't put gas in the car/eat lunch in the cafeteria/be tempted to buy snacks from the vending machines.

We had just bought a vacation home in FL right as this virus situation was ramping up...great timing, huh? Got a great rate, have plenty of equity in both homes and not too concerned about it.

The only spending we've really changed is pulling the dogs from puppy day care. Save almost $500/mo and the boys can stay home with me during the day. Probably miss seeing their friends at school but they'll adjust.

On the subject of "paper millionaires", a million bucks ain't what it used to be. The big question is, how much money could you lay your hands on, in cash, in an hour? one day? a week? If you're not at least reasonably liquid paper assets don't mean much.
 
Originally Posted by mightymousetech
Net worth is defined as all your assets combined, then subtract all your debt. If that's over a million, you are a millionaire. Its pretty simple.


There are all sorts of millionaires though. My sister in law falls into that (mutlti) albeit with home, vacation home, office space all mortgaged, coupled to luxury SUV payment and boat payment. Also a $12000/year family health insurance coupled to $5000/pp health insurance.

Her business is at 20% and cash burned up and payments coming in due.

Wife/I skate near it with home, cash, 401k but no debt. We work to pay taxes living expenses, and get health insurance, build retirement and enjoy life. We are not stressed at losing jobs.
 
Given that more than 10% of the population live in CA and that a home can easily be $900K, even for a condo, hitting a mil is more doable than ever.
And it goes up from there...

Think long term... It works. Good luck.
 
Last edited:
Originally Posted by Mr Nice
Maybe 1M in combined net worth (assets) + all their debt (mortgage, cars, credit cards, etc...) + retirement accounts = 1M

BIG difference between 1M debt free net worth and a hypothetical 1M of combined assets.

That 1 in 20 number is waaaaaaay off. Housing crash and major recession will deflate lots of people's hypothetical millionaire status.




As others said 1 million is 1 million. There are ways to tap the value of your assets if you want. Even things like homes you can either refi or get an equity line and equity lines don't take that long although you only go up to 90% or so, so you can't really tap the full value of the property. But if you got the equity line before the market went down, that 90% might represent 100% or more now...

Lots of people have taken a haircut with the recent market downturn, but last week was a strong week for the market so it's not as bad as you think. .
 
If I could afford a house in California I'd buy one and drive a convertible 911 to enjoy the drive on PCH. ...Ž


Lots of folks are up to their eyeballs in debt but subconsciously think they are living the America Dream. It's more like the American Nightmare when they lose their job and end up living in Slab City, California.
 
Originally Posted by Jarlaxle


It's like you have no idea how small margins are for many businesses... (If a restaurant makes a 4% profit, that's good.)


I have to marvel at any small business owner, especially in New York. You must REALLY want to be your own boss to get into it in the first place. You never really have any time off, etc.


My line of work is still considered essential due to the medical grade oxygen we produce, although we've got the plants unloaded to the max and trucking has slowed to as slow as I've seen it.

With four kids at home, a full time mom and my paycheck our only income, we'd be sunk pretty quickly. I'd hate to have to tap into my 401k given the bite that was recently taken out of it.
 
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