And who can forget…
Your debt service interest sucks up too much of your income.
Inflation is rising faster than what you get paid.
Other middle-aged folks in the same boat plug the promotion ladder.
Job security is a joke. Much like pension benefits.
And far too often, your grasp still exceeds your reach as your belief in the golden years
still lingers in the face of some brutal truths that appear to the contrary.
So if you haven’t saved enough (read any) what’s the only other option?
You will work longer. Maybe 3 years…maybe 5 years past 65.
I predict it will be longer as conditions demand and your health permits.
The motivation is a combo of both fear of loss and hope of gain.
Whatever is the most powerful driver based on your situation
will determine how and where those years are spent.
I don’t fancy being a Wal-Mart greeter but then I have some fall back job skills.
My current distaste for travel (how is it that every flight anywhere takes 12 hours?) suggests I don’t want to be a limo driver to hear others whining about this reality.
What to do? Is there any relevance anymore to looking for work that has the motivating factors that drew us to certain jobs and filled pages of Harvard Business Review? Some may remember hearing about these back in your youth?
Today, we can dispense with many of the extrinsic motivators (maintenance factors behind a good job) like fair and adequate pay, job security, and pension benefits.
What’s left are the intrinsic motivators. Look for variety and challenge, opportunity for decision making, adequate feedback and a chance to learn, mutual support and respect, and don’t forget the big one…room to grow and be self-actualized.
Jobs with these conditions for most 65 year old seniors without educational credentials are in short supply.
The answer may be to continue learning, and never stop learning, new practical skills. This assumes you keep sharpening the old skills, too.
Being overqualified is a retirement strategy you definitely want to have on your side. When you’re through learning, you’re through.
Copyright 2010 William M. MacKay
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( 2.9 / 97 )You would suspect that the rich and the poor are very close in what matters most to them. And why not?
We are all part of the great human family. It’s why we work so hard to raise our standard of living.
And what matters is our satisfaction with life. Here’s the survey to help you identify yours. I encourage you to take it.
Pick the number that best represents your Life Satisfaction.
*** Low 1 2 3 4 5 6 7 8 9 10 High ***
While you’re at it, make a prediction of what you think the world average might be. Write it down. I’ll share the answer below.
The above survey comes from The International Society of Quality of Life Studies. It has compiled a world average rating of our life satisfaction based on over 1 million responses from people in 45 countries.
Now, I’d be concerned that the folks in Botswana and China will surely put downward pressure on the average compared to folks in Belgium and Canada.
What you don’t suspect, however, is how close they come when rating their life satisfaction.
It’s a curious thing. Regardless of economic or social conditions people in many of the underdeveloped countries are just as happy (some happier!) than we are in the west where our standard of living is dramatically higher.
Perhaps we’re all working too hard here as the ‘standard of longing’ demands more and more money and more and more of our time.
When the world average is seven among “the haves and have nots”, I think “the haves” need more face time and more fun time with those they love.
Remember. You’re not here for a long time. You’re here for a good time.
Copyright 2010 William M. MacKay
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( 3 / 86 )I’ve had a change of heart today. It’s a relationship thing.
Nothing that would make the National Enquirer but it should.
Because it’s loss could be brutal. Your job.
Reading Don Peck’s article in the March issue of The Atlantic, “HOW A NEW JOBLESS ERA WILL TRANSFORM AMERICA”, left me feeling deflated, ‘empty as a pocket’ in Paul Simon’s words.
In the first instance, it triggered my fight response. What to do (and do it now) to protect my friends and my children from the potential downward financial, emotional, and social spiral that joblessness could create if Peck’s and others’ predictions are even close to accurate.
Signs of Trouble That Peck Reports
* average duration of unemployment now extends beyond 6 months (first since 1948);
* in the past year a job loss, a reduction in hours, or a pay cut hit 44% of families;
* number of delinquent mortgages in November at 1 in 7, up from 1 in 10 a year earlier;
* no other circumstance produces a larger decline in mental health and well-being than being involuntarily out of work for 6 months or more;
* we are 11 years into a period of decline, much deeper than the latest recession.
Sobering thoughts for Americans to be sure, all of which led me to change my stance on the amount of emergency funds you should have available. This relationship between consumption and saving is a precarious balance and should reflect changing circumstances, both yours and that of the economy.
Given that so many of us use multiple credit cards with ridiculously generous limits, I had relaxed the traditional rule of thumb about keeping 6 months of income available in highly liquid assets. In the past I felt comfortable that 3 months would be adequate. Not any more thanks to The Atlantic article.
The challenge, however, when budgets are tight is to squeeze that much out of monthly expenses. This represents a significant amount of cash that few can manage to hold back from consumption when every dime is allocated for something.
Reading this article will help you find the motivation to try if not the immediate cash.
Copyright 2010 William M. MacKay
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( 3 / 113 )Can you believe that 11.3 million Americans are underwater on their mortgage?
Seems staggering, doesn’t it? But that’s not all.
“More than 10% of people with mortgages owe 25% more than their home is worth” reports MarketWatch, The Wall Street Digest enews.
With this volume of negative equity floating in the market there is not much to celebrate. In fact, if this is the best the recovery is able to produce, I get a real choking feeling about the future of home values.
If you have been trying to sell your home or hope to sell it this year the danger signs are all around of further declines.
Another 2.5 million homeowners have less than 5% equity in their home. This is the state of affairs as 4th quarter US home prices dropped 1.1% versus the 3rd quarter.
Keeping your head above water is the challenge of the day. Spending less appears to be the only solution in an economy where employment is also at risk. No lifejacket here.
This bundle of bad news is a nasty disturbance ‘blowin’ in the wind’ as the song goes. It’s interesting that the original tune was a spiritual sung by emancipated Canadian Negroes that celebrated the end of slavery in the British Empire.
While it was called “No More Auction Block” back then, the same can’t be said for the housing market as it remains chained to a principle (sub prime mortgage) that should have never been allowed in the first place.
Copyright 2010 William M. MacKay
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( 3 / 89 )Wanting more than you can get…
is the Super Bowl of the middle class.
It’s a recipe for financial misery in the first instance
because it’s a poverty of the material kind.
When the “material girl” and boy want all that life has to offer
we are back to where Adam and Eve started it all.
If perfection arrives only when there is nothing left to add
you will never find the happiness expected for one simple reason;
there is always more to acquire. That’s the goal of a consumption-based system.
You can never have it all because it isn’t available yet.
But you can be sure of three things:
1. It will be for sale soon
2. You will be told you must have it, and
3. Some of your friends will get it.
Given the declining financial punch of the middle class, your natural inclination to peer pressure, and an attitude of entitlement chasing it all requires increasing use of credit and debt. That’s the price to pay.
Antoine de Saint-Exupery, remarking about engineering elegance, regarded perfection just the opposite from the above. He saw it when there was nothing left to take away.
The plight of Haitians is an extreme case of nothing left to lose. Deprivation-driven frugality was never meant to be so cruel and brutal. But is there a middle ground?
Examining your spending and eliminating what you want least frees up money for what you really want most. Is there some sacrifice and discipline demanded? You bet.
But the outcome is the future possibility of getting something you would rate close to perfection.
A relentless pursuit of what truly matters most will work if you adopt the rule that you can have ‘any thing’ you want but not ‘every thing’. This action starves the stuff that matters least when you stop using credit to buy them.
When there is nothing left of the stuff you want least you are truly being frugal.
Call it by any name, an attitude of thrift is a proven way to get what you want most with what you have.
When wanting more costs more than you have, happiness is not middle class.
Copyright 2010 William M. MacKay
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