There's a fascinating article running on CNN talking about the various folks who have taken huge pay decreases in the recent economic downturn.
Being a long-time computer hobbyist I tend to look at things in terms of breaking them down to discrete components and asking myself, "How does this work?"
Of course if one has had a certain salary, particularly for a couple of years, I would tend to think that many aspects of their lifestyle would be based upon that salary. For instance, if you're making $200,000/yr you could handle - what? - a $300,000 house and maybe a $400/mo. car payment?
Now suppose you lose this $200,000 job and can only get one that pays $50,000. How in the WORLD do you "unwind" the "positions" you had in housing and transportation that was more appropriate for the $200,000/yr salary.
Well, this article isn't painting a very rosy picture on that topic. They are talking about people getting their houses foreclosed on and vehicles repossessed - and these are people with children.
However, this article makes mention that this one particular family was able to find rental property.
I suppose that is a good sign because I've always been under the impression that landlords really didn't want to work with you if you had a recent foreclosure or eviction.
Of course I guess times have changed.
But, I suppose the theme that is coming through this article and other similar ones is that life goes on - not in the way you were used to at higher salary levels, but life does indeed go on.
Of course I suppose it begs the next question though - suppose you were starting out at $35,000/yr. or some such and can only find a job that pays $10/hr or so? Where do you end up THEN?