All around us talented people are still losing their jobs and as many, if not more, are having their salaries cut from or capped at where it is today. Merit-based compensation increases in 2009 will likely be non-existent other than for a few rare and fortunate companies. And yes, we are all looking for the turnaround and recovery and we are longing to get back to where things were not that long ago. We wistfully remember those conversations where we were getting a 3% increase and complaining about the small size. Now, we have to learn how to deal with a new environment.
Here are some thoughts on how to manage your salary through what could be the next 12, 24 or 36 months:
Plan financially on not making more. Whatever you make now, plan on it being the same in how you budget your household finances. This will be hard with potential inflation around the corner, but it can be done. Start now with looking at what will likely increase next year and the year after and create a ledger so you can see what you have to do to keep up with increased outflow with stagnant inflow. Create the balanced ...
