Comments on: Desperate times call for salary cuts

By: Money Mentor

Money Mentor — Wed, 07 Jan 2009 15:55:27 +0000

It’s interesting to see that executives are actually having to take a cut. Usually they’re always trying to find a way to cut other employees salaries so they can keep their beautiful bonuses. They’ll be alright as long as they’ve been putting money aside over the years.

Wait what am I saying?? They probably haven’t.

By: Paul

Paul — Tue, 06 Jan 2009 20:23:52 +0000

My take on salary is usually that you will spend what you make, no matter what it is. Now by “spend” sometimes that means investing in a retirement account, paying ahead on your house, etc. but no matter how big my salary is, in 11 years it’s always gone at the end of the month. I’m very thankful that I am fortunate to have a good paying job, but I also know I’d make it work if I didn’t.

The last comment is also very true – $100,000 isn’t as much as people think it is, given the much higher rate of taxes you pay if you’re single, and the people you have to support if you’re married and have kids. About the only difference is probably the amount that gets put away for retirement.

By: Denise

Denise — Tue, 06 Jan 2009 17:09:43 +0000

I think, after taxes, that a salary of $100,000 isn’t as much as everyone thinks. Especially if you have a family. I’ve taken paycuts before. Ironically, when I got my college degree and went from bartender to journalist, I took a 50 percent paycut AND suddenly had student loans to pay. So much for higher education.

I think it’s a lot easier to take a pay cut if you are young, single or in a couple with no children, and rent rather than own a home. More flexibility.

It’s a sad state of affairs when there is a dearth of well-paying jobs in this country. Many people, including highly-educated engineers, are taking pay cuts. I suppose this is what comes with globalization. The standard of living in the developing world rises, and ours must fall.