Tuesday, January 27, 2009

How to live through the recession

Posted by Rie Umano

During this recession, the unemployment rate is hitting numbers we haven’t seen in our history. Over the last few decades, advanced degree guaranteed that you will have a job after graduation. However, in these days, the advanced degree like M.B.A. does not equal job security. During this recession, many managers think laying off employee would be a great cost saving; however, it is actually not an effective way to save the costs. Laing off an employee is effective in the short-term, but not for long-term. Once these rough times are over, the companies will be hiring more people and our life would get better. However, even though you are not fired, there are things that affect your finances in a bad way: wage cuts and freezes. Also, rising food and medical costs would harm your budget as well. On the other hand, as I mentioned, it is not a long-term problem. So, you should stay calm and think how you would get through this economic crisis rather than going into panic mode. There are many ways to overcome and control your budget and financials such as cutting family expenses, making change in your retirement investment. As good news, although many people would think there is no hope for a salary increase during this recessionary period, but actually it is not true. It is a fact that a salary increase is not realistic, but it really depends on your motivation and performance. It is important that you have to make significant contribution to the company in order to raise your salary in this severe economic situation. Things get harder and harder in these days; however, there are many ways to overcome these economic hurdles by making significant changes.


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