Overcoming Financial Challenges

Suddenly you’re without a paycheck. Panic sets in. Even if you’re among the lucky few receiving some sort of severance, how long will it carry you? What about the mortgage? What about health insurance? How can you refinance in this environment if you’re unemployed? Where do you turn for help in overcoming financial challenges? How do you know what kind of help you even need?

Do you have the flexibility to move? Are you locked into an upside down mortgage? Are you facing the prospect of losing your home or potentially even bankruptcy? If so, the sooner you face the issues, get real professional counseling and take whatever action is necessary, the better.

Moral Hazard vs. Financial Servitude?

Update: In a recent New York Times article, Roger Lowenstein challenges the wisdom of staying in a home with a hopelessly upside down mortgage and years of financial burden struggling to retain a bad investment versus just "walking away" where the contract provides for non-recourse. The clear message is to seriously consider walking away.

You may want to carefully weigh the moral issues (society's "moral hazard" versus the obligations to family and self) against the business decision of the home as an investment. Why is the home any different from any other investment?

Why is it a moral hazard for individuals to walk away from a poor real estate deal but a “good business decision” for corporations or financial institutions when they choose to cut their losses? If it is a good business decision for corporations, but a bad moral decision for you, it certainly seems like a double standard. If you're in this situation, you have a lot to consider.

Why is it OK for Corporations to File Bankruptcy and "Reinvent Themselves" . . . But a Stigma for Individuals?

Well, given the “new normal” of economics, society and the workplace, the stigma is not likely to retain the same negative marker as in the past. We recommend that you read the New York Times article referenced above and review some of the material offered by Stephen Snyder in his book, “Life After Bankruptcy.” At the very least, these references will give you a different perspective on the subject of financial obligations versus financial responsibility.

We think that most rational employers will be less likely to be concerned about your past financial situation (they may have problems of their own these days) than the decisions you are making now to overcome financial challenges. If they see it otherwise, you may well be better off looking elsewhere.

Time Is NOT on Your Side in Overcoming Financial Challenges!

Given the current economic climate, you could be looking at six to 12 months before finding another comparable management position. It’s not a pretty picture and the clock is running. You may be in shock over your sudden change in fortunes, but there’s real truth in the old adage that ‘when the going gets tough, the tough get going.’ Take stock of your resources.

Conducting An Executive Job Search Takes Resources.

The first thing you have to do is step back from your emotions and take stock of where you are. What is your “liquid net worth.” How long can you stay afloat without income? How will you finance your Executive Job Search? Where do you stand vis-à-vis unemployment insurance, health insurance, mortgage payments, etc. What do you need to do to provide for your family? What kind of work is available to you even on a temporary basis?

Do You Need Interim Support?

Do you have enough reserves or means of support for a minimum of six months? If not, overcoming financial challenges may mean taking a very different kind of job – at least on a temporary basis – than your management credentials might support. What might have been “beneath your dignity quotient” a couple of years ago carries a lot less stigma in a world where 10% unemployment is reality.

Do you or your spouse have writing or sales skills? Is there something you can do as a team from home that will give you time to prepare and conduct a professional level job search at the same time? Is there something you know or can do that people need now and are willing to pay for? Is consulting an option?

Conducting a Professional-Level, Executive Job Search is a Full-Time Job!

Here’s the reality. Conducting an Executive Job Search can be a full-time job in itself. And, in this environment, it’s not going to be a cake walk! You may be the most qualified executive in your particular field. But the reality is that it’s more often the best prepared candidate that gets the job. The less you prepare and the more haphazard way you approach looking for a new job, the more you are rolling the dice. And hope is NOT a strategy. If you need Interim Support, the sooner you address the need, the quicker you will find a solution for overcoming financial challenges that works for you.

Return from Overcoming Financial Challenges to Meeting Challenges.

Return from Overcoming Financial Challenges to Job Search Training home page.

SBI!