This post fits more into the "Retirement" side of my blog. It would just graze the edge of the "RV" side of the blog.
By helping a friend today, someone I worked with just a few months ago, I saw for the first time the bad side of the economy in the USA. It's the economy that some say has recovered and everything is great and then there is the side where those people cannot see the light at the end of a dark dark tunnel.
In some news media over the past few years you might have read how the majority of working couples are really just a payday away from disaster. This is based on no savings, living payday to payday, a family to support plus a mortgage. Well, this is kinda like one of those stories.
In this case there was no mortgage lost, but a single mother supporting two boys below the age of 7. Due to some recent contract awards while working for the government as a government contractor, her parent company lost the contract after five years of support, when it came due for new bidding. The new contractor chose not to make an offer to her to keep her job. It is common the new company will make an offer when there is a change in government contracts.
In this case a couple of things have played against her. Those are somewhat private and something I will not discuss here, since I do have some ex coworkers that read this blog on occasion.
Without a job offer to her, to keep her job, what it did was move her and her two boys from a very nice large house that was rented, eliminated a very substantial salary to nothing and a situation where the job market is tight enough in the local area that after a month of job searching she has found herself unemployed. She is also out of money and her unemployment does not start until the week of September 21, 2014. That unemployment payment will be less than half of her salary of a month ago. How many of us could afford to take a 60% pay cut or more?
When I heard the news from a mutual friend the other day, I contacted her to see if she was ok and if there was anything I could do to help. Since I have been out of circulation by being retired, I was not aware of job opportunities as I normally would be. So there was nothing I could do there to help her in finding a job except let her know she could use me as a reference.
What she asked for and told me was the most stressful for her right now was a very surprising answer. It was an answer that showed me just how bad this friend was hurting, withdrawing and not asking for help from any of her friends. She had just moved from that large nice rental house to a small 3 room, not 3 bedroom but a 3 room apartment, where the cost of rent was the deciding factor. This was one of those older large houses that was turned into multiple apartments mostly to attract the rental market of college students years ago, but not now. The house was in good shape, a neighborhood that had remodeled older houses for blocks and blocks ... a nice area to live.
Luckily she had a ground floor apartment, with a nice front porch and yard overlooking a part of the college town and a small backyard and patio but not the type of yard where the two boys could play and burn off some energy. The rooms were good size but with the two young boys the rooms had to be reconfigured to fit them. The bedroom and the living room were reversed to give them the bigger room as a bedroom.
Back to her surprising answer and a look at a Catch-22 when things are not going your way in life.
When I asked if there was anything I could do to help her, she paused and then in almost a whisper ... "I need someone to haul my trash away".
I was somewhat confused by that answer. I was expecting to be asked for a loan, maybe buy some groceries, or fill her car up with gas but no. She said her most stressful thing right now was getting the trash hauled away.
The trash in this case were boxes of stuff she had moved but had no room for. It was things she had not sold on Craig's List or eBay. It was really just stuff you throw away. I thought I knew the answer, but asked her why couldn't she just leave it where it was in back for the weekly trash pickup. Of course one was money, she could not afford that kind of expense but the other reason was .... even though she had bagged a lot of it in large heavy duty black trash bags, the city had their own trash system where their containers had to be used. Also those containers were color coded where the trash was separated as if you were recycling. Those containers also cost extra on top of the pickup fee. I had expected the cost being a reason but not the container requirement.
The stack of empty boxes plus some filled with things not worth giving away were covering the small patio right up to the back door of the apartment. Out by the alley was a stack of large moving boxes and the large black heavy duty bags filled with more stuff not worth giving away. Only the stack by the alley had been sitting there for a month and had been in a couple of heavy thunderstorms. It was not a good situation. The boxes were soggy, the bags had puddles of water on them.
Long story short, in two different trips I was able to fill my Toyota FJ and haul everything away. The empty boxes were broken down and taken to recycling. The bagged trash will go out with my weekly pickup and the large boxes full of junk were burned ... the burning process just finished before the thunderstorm that passed through early this evening.
So the economics side of this story is, she is doesn't have a job, doesn't have enough money to last until September 21, with two young sons to feed. She also needs to buy gas to get to job interviews if she she is called. She has interviewed a few times but I'm sure here past salary keeps her from an offer. She has many resume's out for jobs in a market that will be hard to get a job, especially without a college degree.
I know from personal experience twenty years ago, college graduates some with master degrees are willing to work for less money just to stay in the area. Some have a spouse still finishing a degree, some are graduate degrees. It's a tough market to crack when looking for a job and it's even harder without a college degree ... if you expect to make the amount of salary she was making.
The two unspoken factors will prevent her from being hired in her old department, even though it has been requested she be hired numerous times by different managers, according to her.
Yes, she could have saved more or even some of her salary. The majority of baby boomers nationwide have not saved since life itself does become expensive raising a family, especially as a single parent. She was one of those that never suspected she would ever lose her job, although I mentioned to her last summer about being financially prepared in case the large contract was not renewed. These companies are Fortune 500 companies that work that bid on contracts to support government activities. That environment has naturally changed for everyone with the changes in the last year of worldwide military support and available funding released from D.C.
She was kind of caught in the 'perfect storm' of government work, and now finds herself in a bad situation.
Today was an experience I didn't ever want to witness, especially to a friend with young children.
As far as the RV side of the blog I mentioned, this situation reminded me of some of the blogs I had read over the years where families or even single people had moved into an RV and started the lifestyle due to a loss of job, loss of house due to job loss or storm damages. It also reminded me of just how fragile retirement living is for some based on living on a shoestring budget. Who knows how high the cost of energy, the cost of groceries and medical coverage will be within the next 5 and 10 year periods, let alone gas/diesel prices. Will their retirement incomes keep up with inflation?
I wonder what percent of the millions of RV travelers only do it for economic reasons?