Today I Learn… I make a point of learning something new everyday. This is what I learn each day

1, Jan 27, 2009

The Announcement of Job Cut Throughout Sprint Nextel Campus

Filed under: Economy — admin @ 9:22 am

The announcement is once again echoed on Monday throughout Sprint Nextel headquarter — “Sprint Nextel Corp. will cut a total of about 8,000 jobs by March 31.” The news once again throws many people into a period of worries, fear and instant panic. Indeed, panic is the first reaction upon job loss. That’s why the first advice that is often handed out to the unfortunate is “Don’t panic.”

This piece of news coincided with some observations and a book that I am reading at the moment. I observe some people that I know of drive BMW and dress rich. You may be dazzled by the display of wealth and find it hard to tell “the difference between wealth and pretend-wealth.” Only their retirement fund or savings in reserve and their attitude toward event like job cuts can reveal this difference. These observations remind me of the book by Lee Eisenberg, The Number, A Completely Different Way to Think About the Rest of Your Life.

He uses a term which can be applied to some folks that I know of, the faux millionaires, that is millionaires in appearance only without anything salted away. It is these people that are panic-prone upon the sound of job cut.

The author classifies people into four personality types. According to him, none of these types are perfect, but the last one is obviously the better of the three. For me, having a plan is always better than not having and you won’t go terribly wrong if you have both action and a feasible plan.

(1) Procrastinators – without any plan, or any sense of the Number.
(2) Pluckers – having a vague plan and an arbitrary Number.
(3) Plotters – having a plan and a Number but no purpose.
(4) Probers – having a plan and a Number that is centered on what would really make a difference in their life in retirement.

I wish my children could read this book, learn lessons from other people’s unpleasant experience and accept “the premise that saving money comes before spending it” so that they won’t join the army of panic in case they happen to find themselves in that situation.

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