Financial Turmoil and Lessons Learned (Reader Comments)
I received many emails in response to the message “Financial Turmoil and Lessons Learned” (March 31, 2009).
What follows is the first installment of some of the comments I received. I can’t include all of them. I am not taking a position in favor of…or against…any of the comments that appear here. I’m trying to give you an accurate picture of the viewpoints expressed.
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Reader Responses:
I have realised two things as a result of this economic turmoil.
Firstly, now approaching 60 (though not retirement, never that) I have realised just how often in the past I have gritted my teeth and got on with a project I didn’t particularly like (or worse) just for the money I would get at the end of it. That money was squirreled away and was earning good interest/returns for my later years. Now the investments have lost huge amounts and the savings get hardly any return. So there was little point in all that “pain now” for “gain later”. From now on, I will only do what I enjoy working at.
Second, like a lot of people, I have realised that all the things we thought were secure aren’t. I’ve realised that we have a choice when the gales rage and rock our boats. We can cower in the harbour and get buffeted against the quayside and have our boat come apart that way - or we can set a new course, face into the wind and set out to enjoy an exhilarating ride. We may still come to grief eventually - but we’ll go down doing what we enjoy. I read once that when a snow storm comes across the prairies, the bison face into it and survive whereas cattle try to move away from it and can wander for miles and exhaust themselves because they can never outrun it. Don’t know if that’s true - but if it is, I’ve decided I’d rather be a bison.
So I’ve decided that this is the perfect time for a risky career change - because to stay where I’m at is no more secure than to move forward, and it’s the recession that has made this the case. I think in a couple of years I’ll be thankful that it made me move on.
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It is true that the current economic & financial catastrophe has brought about large numbers of adversities among the people & in their families. But we, as children of God almighty, must bear in mind that we are here because of HIM; and that when we have surrendered our lives in his hands, we ought not to fear for the several uncertainties that life would unfold in unforeseen events, because it is HIS responsibility to protect his children in such turmoil and ONLY his children will be safeguarded. Besides, we must keep in mind that this life on earth is just a preparation session before we start our eternal life with our heavenly father.
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Man’s greed for material things has made this global financial crisis. Man has become so obsessed with “accumulation” … and it has taken its toll.
The same man will be axed to death by a man hungry for food. If only man can quiet his mind and return to his true nature of “nothingness,” born with nothing and returning to earth with nothing…but beautifully clothed with the wisdom of giving and sharing to all creations whatever he has…this world will be a truly beautiful …with virginal forests, serene and cool blue waters…no man-made pollution…a place where people can smile with gusto…stress-free. The global financial crisis is like the cemetery…a man with endless hunger to accumulate more, a bottomless pit…with no level of satisfaction!
America is a country whose foundation is built on “spirituality” … but then the legislators and Wise (?) men and political pundits started throwing away GOD from the offices and schools and public places… and look what happened, there is moral decadence… and now you are asking why is there crisis? There is no “God” in America… HE was kicked out from its halls…and the world started taking him out of the picture. So, now what?
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It has taught me that you cannot ignore God in this country and expect everything to be rosy!
Let’s face it, the lack of faith in God and His commandments (e.g., Thou shall not steal!) will lead you to this type of catastrophe!
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1st Law of the universe is CHANGE…..everything is in process of change EVERYTHING …..from the formation of a diamond to wearing down of mountains all at a different rate… you must adapt or die.
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Yes, we are all feeling the effects of this shaky economy and times of uncertainty.
Although I have been fortunate enough to keep my job, we are relocating to another location which will double my commute and create a bit of a financial hardship. However, what I have learned is to still be very grateful for what I do have. It has also taught me to not be so free with spending & to live within my means not above them, for these things can be taken away at any moment. We are all so caught up in accumulating a lot of things that we do not need and have to have the biggest and best that anyone has. We should just be grateful for what we have and not always look to have more.
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This is my observation of the current financial crisis:
The American dream is built on the following fallacies:
Live outside of your means
Bigger is better
Globalization (eg the American way) is good for the world
Higher housing/stock prices create wealth
Leverage to the hilt
Financial creativity for sake of profit and not value added
Compensate executives to the detriment of employees and consumers
Short term objectives overshadow long term ones
Greed is a driving business force
Profit for the sake of profit
These should be re-evaluated in light of what is currently happening.
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I have changed. I’m looking deeper at myself. I am counting on myself. My support comes from the inside. Reality is, it always does and always will. The current environment has refreshed my awareness, as I personally was heading down the street of complacency and comfort.
I’m back, I’m excited, I’m creating!
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None of this is hardly original, but to someone who has never, ever seen anything or any kind of financial melt-down like this, these lesson rang true.
I was always told to keep six months of savings on hand, in cash and keep it liquid like a short-term CD. I fought the urges to spend on the things I wanted along the way in order (over time) to build up this cushion. I cringed thinking my money was wasting away when it could have brought better returns in the stock market. Well, I guess I know better now. It has to be there when you need it.
I was always told to keep my debts at a minimum, pay off my credit cards on time and in full, and to only borrow on assets that appreciate (like housing–HA HA HA!). Well, what saved me is I’ve been living in the same house for the past fifteen years. I’ve built up equity and the payments are very manageable. My wife and I never felt the urge to trade up to a bigger, better house, to “stretch” ourselves and buy the biggest house we could (barely) afford. We also drive our cars until they cannot be fixed anymore, or when the repairs far exceed the investment in a newer, pre-owned vehicle. We are very comfortable though our house is far from the nicest house in the neighborhood and our newest car is five years old.
My wife and I also work second jobs, part-time, weekend and often seasonal, to bring in extra money. Our children all have part-time jobs. We garden and buy in bulk. I do all our home repairs. I heat the house with a wood fire. We’ve cultivated other interests and income-producing hobbies that acted like a back-up plan in case our real jobs were eliminated. We’ve also been very generous in our donations to charity.
I find two things ring true. First, our lifestyle has been very sane, almost boring. But in these tough economic times, our lifestyle has not taken any drastic changes or hardships. We’re still very comfortable.
Second, we never wanted to get into something that we could not get out of if something happened to either one of us (like a plant closing or a premature death). So we’ve always sought to live simply.
I hope these lessons don’t sound condescending or self-righteous. We’ve often felt we were missing out on many of the good things in life. We also love our jobs reminding ourselves there are better paying jobs out there….or at least there were.
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More comments will be published in the next issue. If you would like to submit your own comments regarding lessons learned from the recent financial turmoil, please send them. I only ask that you submit comments in response to my original message (published March 31, 2009). I’m looking for your personal insights and experiences.
Thanks again for participating!
– Jeff Keller