Interesting article about some Wall Street employees who have hit hard times due to this downturn. I feel really bad for anyone who loses a job. I lost a job once when my wife was six months pregnant with our first child. It was a scary time. But, in hindsight, it forced me to move forward with my financial planning career and dream of owning my own business. So, I guess it turned out to be the best thing for me…unless my business falls apart. But, we will hope that it doesn’t.
Even though I feel for these folks, I had to wonder if they could have done a better job of managing their money when they were making the big bucks. Each of the men profiled seemed to spend lavishly when they had their salaries. They may not be facing foreclosure and economic ruin if they had prepared for a rainy day and lived below their means. The one profiled man, Mr. Arroyo, claimed he and his wife built an emergency fund to last five years. But, he lost his job in 2007, and they are already out of money. I am not the best at math, but that doesn’t add up to five years.
What do you think they could have done to prepare better for this mess?