I Could Just Scream

[MushyMushy]

I've always though of a bonus as a "bonus". Budget according to your salary and the bonus is like a gift...never expect it or depend on it and it wont' be seen as a pay-cut.

For some people, that bonus is written in a contract as part of the salary. It's negotiated in as part of the position.

My DH had a guaranteed bonus at his last job. His new job doesn't have one and we'll sorely miss it when that time of year rolls around.

 

[apirateslifeforme]

I'm feeling it. My mother lost her job of 27 years back in December '05 when her company closed. She went back to school and became a medical assistant, but right when she completed the program, my grandmother was diagnosed with kidney failure, terminally ill. So Mum put off finding a job in order to stay home with Gram and care for her (they lived together). I was divorced in February, but my ex left me with debt, which I stupidly did not ask for at the court because I trusted him to keep his promise to pay me for it. Anyway...Gram died in July, so at that point my mother was alone. My lease was up at the end of October, so we decided that for emotional and financial reasons, I'd move home when my lease expired. Well, my mother hasn't found a job yet. She had one for about a month, but she hated it and quit one day a few weeks ago. I sat down and tried to budget with her, but we found that we'd come up at least $40 short every month if we lived on my paycheck alone. I'm paying all the bills and she just refuses to cut back on anything. But I can't say anything to her about getting a job...

 

[disneyfan67]

I'm putting on my flame suit here....but please remember these issues when the Presidential election rolls around. A few elections ago the question was asked "are you better off now than you were 4 years ago?"...I think we know the answer to that question this time.

No flames from me either. I was thinking about this very subject earlier today while I was grocery shopping. Everything is so much higher than it was just a few years ago. I was in the dairy section getting milk and was shaking my head at the 4 dollar a gallon price tag for it. Between higher energy costs for heating and electricity, plus what you get hammered for at the pump, things aren't all that great in my house either. I know I'm lucky compared to some and my thoughts are with them in this holiday season. It's going to be a tough Christmas for some and just hang in there.

 

[Kathi OD]

Then you've never had a compensation package that includes a guaranteed bonus. Unfortunately the way it's written where DH works once you read the fine print, it can end up being $1, even if it were $1 million a year in the past. Like I said, when it's been at "X" for the past ten years and then suddenly it might be a very small sum, it is a compensation cut.

You might not see it as such, but anyone with this type of compensation structure sure will.

Actually, I don't see it that way and that's the kind of compensation package DH has had for the past 20 years. He gets a weekly salary and a guaranteed yearly bonus that is based partly on company profits (primarily) and partly on his year-end evaluation. We have always looked at that bonus money as "gravy" and not salary, especially since most of it is based on company profits. When bonuses are tied to company profits, you just can't count on that money to be available for bill paying as the profits can decrease dramatically at any time.

There have been quite a few years when his bonus was 25% or more of his annual salary. Those were the great years. Of course we always groan when the company has had a bad year and his bonus is not in line with what he usually gets, but it never hurts our bottom line because we haven't counted on it to pay for any of our bills.

For those of you who are struggling, you have my prayers that your troubles lighten soon.

 

[Colleen27]

We're not in as bad a position as some, and we really feel blessed for it, but this economy is scary and seems to be getting worse with every month that passes. DH is a contractor and started his own business about 2.5 years ago because he was tired of employers demanding he work such long hours that he was barely seeing the kids. So we have a cushion that we set aside to deal with the ups and downs of a new business (which was all ups for the first two summers, but has been nothing but down for 2007). We've lost several repeat customers because they lost their homes to foreclosure, and no one is putting any work into their homes in this market. So where a year ago, we were doing mostly roofs, decks and other fairly major improvements, this year has been fixing leaky faucets and repairing screen doors. Meanwhile, I've lost most of my lucrative copywriting clients to the same downturn, and I'm reduced to working for an off-shore content provider for a fraction of what I was making this time last year.

We can't survive another year like this one, but all we read in the paper is predicitions of worse to come for 2008 - more job losses, higher foreclosure rates, higher prices for everything.

 

[ducklite]

Actually, I don't see it that way and that's the kind of compensation package DH has had for the past 20 years. He gets a weekly salary and a guaranteed yearly bonus that is based partly on company profits (primarily) and partly on his year-end evaluation. We have always looked at that bonus money as "gravy" and not salary, especially since most of it is based on company profits. When bonuses are tied to company profits, you just can't count on that money to be available for bill paying as the profits can decrease dramatically at any time.

There have been quite a few years when his bonus was 25% or more of his annual salary. Those were the great years. Of course we always groan when the company has had a bad year and his bonus is not in line with what he usually gets, but it never hurts our bottom line because we haven't counted on it to pay for any of our bills.

For those of you who are struggling, you have my prayers that your troubles lighten soon.

Like I said, we DON'T count on it to pay the bills. We use it for a variety of other things, including charitable contributions and house projects. If there's basically no bonus, the charitable contributions are done for the year, and we'll be trimming other things out of the budget in order to fund home repairs/maintenance that needs to be done. Regardless, it will still pinch to lose that income, which is my entire point.

 

[graygables]

DH and I are both self-employed which is SO difficult in the best of times. The past few years, his work has been dwindling and this year was horrible. My business did OK earlier in the year (although took a big hit in gas prices...I have to travel to shows with a cargo trailer, so the fuel costs alone became astronomical), but as the economy really started to slip, so did sales and my last few shows were NOT what I needed them to be. We're cutting as much as possible from the budget, even toying with dumping hubby's disability coverage (crappy and $100/mo), but if this continues for both our businesses, we're going to be in a world of hurt. Hubby won't "get a job" and right now, I'm stuck in my situation. I feel everyone's pain!

 

[klmall]

Just wanted to offer to all.

DSis lost her job of 20+ years as a graphic artist (computer) this fall and there is a big dispute over severance so Christmas will be slim for her and their 2 young sons. Her DH does have a good job but they have only a little savings due to many med bills in the past. She will find a new job but it will be awhile.

My Dbrother, who is a partner in a contracting business opened about 6 years ago, was literally turning away business daily until this fall. He's still working but the big jobs are gone and he had his first job cancellation after contracting recently (client forfeited $1000 deposit). His kids are young and wife has a steady job but they have very little reserve. Thank goodness, he left the printing business to go into contracting. Both his previous employers have gone under!

And we all live in one of the few almost-recession proof regions - Washington, DC area. People haven't lost jobs in large numbers here yet and foreclosures haven't reached the numbers found in some states.

I just retired this past July and we have been fixing up our house to sell so we can move to Pennsylvania and build our new house on land we just bought. But it's really hard to watch our house value drop thousands every month until we sell this spring. DH will work till then also but he is so unhappy in his job. If it takes too long to sell here, I'll have to find a job - a decent job, not just a part time one.

And if our trip to Disney wasn't all paid for already, I would probably cancel it even though it will be the last time we can travel with DS before he goes out into the world after college graduation. I'm sure we all will enjoy it but if money is tough later on, I know I will think back and wish I canceled it.

Anyway, I know I don't have any problems. We can pay our bills, we have insurance and we have what we need but I am worried about my family and those who have written here.

 

["Got Disney"]

I was saying to my Dh the other day how expensive everything has gotten. We are okay with money he makes a 6 figure salary but the cost of everything is crazy...I said to him that we are being hit hard in the pocket book I could only imagine the pain that others who have a lower income are getting by

The price of gas, food, clothes, Insurance is ridiculous. We pay $760 out of pocket for health insursnce for the 4 of us...we just got a letter telling us it is going up to $975...WHAT no wonder there are soooooo many Americans with no health insurance. And this is Kaiser an HMO.

We have not given friends or family gifts in years. We just give to the kids.


Remember Christmas is not about presents......and just telling friends and family no gifts makes them feel better also. If you do a big family Christmas with relatives than have everyone but one gift under $20 and do it like a White elephant exchange...that is sooooo much fun

Happy Holidays to you all

 

[graygables]

[QUOTE="Got Disney";21955495] We pay $760 out of pocket for health insursnce for the 4 of us...we just got a letter telling us it is going up to $975...[/SIZE]WHAT no wonder there are soooooo many Americans with no health insurance. And this is Kaiser an HMO.
[/QUOTE]

Our Kaiser did that to us (only ours jumped to a little over $1000) about 6 years ago. There was NO way we could afford that so we had to cancel.

 

[Kteacher]

We're not struggling, but we've had some unexpected large expenses in the last 2 weeks( work vehicles all needing repair at the same time,and a 5,000.00+ vet bill ) so our Christmas budget is now blown. We'll have 2 kids in college next year, so that should be interesting for us as well. We started putting money away when we were a lot younger -we're in our late 40's now. It was hard work- we did without a lot of things when we were first married and our kids were really little. A lot of our friends thought we were crazy, but now we find they're taking out second mortgages to pay for their kids' tuition We are both still lucky to be healthy enough to work as much as we do- DH and I both work about 60 hrs per week. to everyone who is going through tough times

 

[TinkandAriel]

Our fuel bill for dh's logging truck used to be about $800 a week. Then there's insurances for all the equipment....now that he's doing more excavating and less hauling, it's better. Our friend out west says diesel there is 3.80 a gallon. It's crazy.

 

[momof3disneyholics]

I see it everyday in the tourist industry how people are struggling. Where people used to buy 5 and 6 day hoppers, they are now buying 1 or 2 day base tickets. Also, a huge number of people are doing the timeshare tours for cash or free tickets. This last weekend was a huge weekend for timeshare tours but my sales for just straight tickets without tours were very small. People are still coming here and trying to give their families a vacation, but they are asking about more less expensive and free attractions to go to like Downtown Disney. Gas prices are absolutely crazy here too, I paid 3.59 a gallon yesterday for midgrade!

 

[ducklite]

Just wanted to offer to all.

DSis lost her job of 20+ years as a graphic artist (computer) this fall

What area is she in? For personal reasons (nothing related to working conditions) my SIL just left her graphic artist position, and they've called her to do some freelance since then as they haven't filled her job. If it's in the right area, I'd be happy to get the details on the company and PM them to you!

 

[klmall]

What area is she in? For personal reasons (nothing related to working conditions) my SIL just left her graphic artist position, and they've called her to do some freelance since then as they haven't filled her job. If it's in the right area, I'd be happy to get the details on the company and PM them to you!

DSis is in southern Maryland, near North Beach, along the Chesapeake. She was doing alot of desktop publishing I think. She was working from home part of the time before all this happened.

 

[ducklite]

DSis is in southern Maryland, near North Beach, along the Chesapeake. She was doing alot of desktop publishing I think. She was working from home part of the time before all this happened.

Bummer, SIL was in the Buffalo area. Does your sister like snow? Maybe she'd like to move?

 

[Freyja]

I´m sorry so many of you have to go through this now. It´s always difficult, I´ve been there many times, but the holiday season just makes it so much more difficult to cope with. Hope the new year will look brighter for everyone!

 

[cteddiesgirl]

I'm putting on my flame suit here....but please remember these issues when the Presidential election rolls around. A few elections ago the question was asked "are you better off now than you were 4 years ago?"...I think we know the answer to that question this time.

No problem here. I never voted for either Bush.

Then you've never had a compensation package that includes a guaranteed bonus. Unfortunately the way it's written where DH works once you read the fine print, it can end up being $1, even if it were $1 million a year in the past. Like I said, when it's been at "X" for the past ten years and then suddenly it might be a very small sum, it is a compensation cut.

You might not see it as such, but anyone with this type of compensation structure sure will.

A bonus is a bonus is a bonus.

All compensation packages with a "guaranteed" bonus are written to the advantage of the company.
It's guaranteed only until they decide that "we can't afford to pay a large bonus, so let's just cut it". It is after all a bonus.
I would have still considered it a bonus and not part of the salary.

To me, if it says bonus, it's not part of the salary. No matter how they may word it or dress it up.


I have also felt the hardship.
Currently, the type of work I do is getting less pay than it did 4-5 years ago.
Three years ago, I made $3 phr more than I do now for the same type of work.
I have no insurance. I do need to go see a doctor. Actually, a couple of them. But, I can't.
I have to buy new shoes right now too. Which for most people isn't that big of a deal. But for me it is. My shoes usually cost between $60-$150+ because I wear an odd size. But since my old shoes have holes in them, they have to be replaced. I managed to get 1 pair (at $85) and still need 2 more.

Already, my paycheck really doesn't cover what I need to live. I have to live with my father and can't even get a car. Well, actually, I could probably get one. But I couldn't afford to drive it with the prices of insurance, gas and upkeep.
I can't go cheap on basic things such as soap, shampoo, lotion, etc. I have skin allergies to 99.9% of man made fragrances that is put into everything.

My dad turned 65 this year and can't even retire. He has to keep on working so he can pay the bills. The job he has had for 8 years has only given him 1 small raise in all that time and no bonuses. His vehicles (that he owns outright) are old and need to be replaced. The truck is an 88 and the transmission is starting to slip. The car is an 89 and is getting expensive to keep running.
He also just found out that he's not going to get as much as he was told from SS come January.
And the price of things just keep going up.

So, it's getting hard on everyone around here.

 

[ducklite]

No problem here. I never voted for either Bush.



A bonus is a bonus is a bonus.

All compensation packages with a "guaranteed" bonus are written to the advantage of the company.
It's guaranteed only until they decide that "we can't afford to pay a large bonus, so let's just cut it". It is after all a bonus.
I would have still considered it a bonus and not part of the salary.

To me, if it says bonus, it's not part of the salary. No matter how they may word it or dress it up.

Did I ever say it was part of his salary? I said it was part of his compensation package, and losing it would be like taking a salary cut. I didn't say it was salary. I've repeatedly referred to it as a bonus, not salary. Geesh!

The point is that without it, we'll be making some changes. Some discretionary spending will be cut out, we'll be scaling charitable giving WAY back (we make various donations throughout the year, but normally donate 25% of the bonus check on top of that), and we'll have to tighten the regular budget to be able to save extra for some needed big ticket items like painting the house. This thread is about feeling the pinch that is happening to many in this economy. We're feeling the pinch because of the bonus situation.

As I've said several times in this thread, we still feel very blessed that we've got jobs, and our prayers go out to those who have been hit a lot harder than we have. Hopefully things will turn around quickly for everyone.

 

[Mickeyistheman]

I do as well understand what all are going through on this thread. It is nice to know that I am not alone.

It isn't that I have been spending more money, its just that bills are adding up. Gas is ridiculous and even food shopping is crazy and I am a single woman trying to eat healthy. They don't make healthy food cheap. No wonder so many women are overweight! Sorry that was a bit off topic.

Even though I will be going into more debt because of Christmas, instead of dreading it I am embracing it and I have Christmas CD's in my car and I am decorating my cubicle as well.

I do hope that everyone will try to enjoy the season with their family and friends and as some have said... This too shall pass.