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Surprise: Severance Pay Doesn't Last Forever
By
Jaya Saxena
Published Nov 11, 2009
Modified Nov 11, 2009
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By
Jaya Saxena
Published Nov 11, 2009
Modified Nov 11, 2009
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With the latest proof that sometimes poverty can't even pry the Gingerbread Lattes out of peoples hands, it seems that many victims of the economy are just now learning the severity of 10.2% unemployment, as they're beginning to reach the bottom of their severance packages. How did they learn? Well, it turns out that spending as much money as you did when you had a job just doesn't work the same way when you don't have one.
One Newark resident, Michelle Patterson, had to adjust to life without her $140,000/year salary. She tells the Wall Street Journal that her daily Starbucks runs "made me feel like I was still at work," and continued to spend nearly $200 a month on her nails and hair. That's had to stop now, and she even had to downgrade to basic cable.
Former New Yorkers Chris and Kelly Hipsher moved to South Carolina after Mr. Hipsher lost his job in Detroit. They had about $60,000 in severance, but burned it up quickly on their three cars, $250 a month for a cleaning lady, and $200 a month for flowers. "Now we have $600 to our name," says Mr. Hipsher, who recently had to pawn his wife's $12,000 wedding ring for a $2,000 loan. Welcome to reality, folks. Would you like one or two ketchup packets to go with your ramen? [Via Daily Intel]
Tagged
economy
overspending
recession
severance pay
wahmbulance
Jaya Saxena
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