Surprise: Severance Pay Doesn't Last Forever

With the latest proof that sometimes poverty can't even pry the Gingerbread Lattes out of peoples hands, it seems that many victims of the economy are just now learning the severity of 10.2% unemployment, as they're beginning to reach the bottom of their severance packages. How did they learn? Well, it turns out that spending as much money as you did when you had a job just doesn't work the same way when you don't have one.

One Newark resident, Michelle Patterson, had to adjust to life without her $140,000/year salary. She tells the Wall Street Journal that her daily Starbucks runs "made me feel like I was still at work," and continued to spend nearly $200 a month on her nails and hair. That's had to stop now, and she even had to downgrade to basic cable.

Former New Yorkers Chris and Kelly Hipsher moved to South Carolina after Mr. Hipsher lost his job in Detroit. They had about $60,000 in severance, but burned it up quickly on their three cars, $250 a month for a cleaning lady, and $200 a month for flowers. "Now we have $600 to our name," says Mr. Hipsher, who recently had to pawn his wife's $12,000 wedding ring for a $2,000 loan. Welcome to reality, folks. Would you like one or two ketchup packets to go with your ramen? [Via Daily Intel]

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By Jaya Saxena in News on November 11, 2009 4:44 PM

Comments [rss]

zodak

holy crap, those people are amazingly stupid. i was unemployed for a few months this year & was able to pay my rent & not starve without severence.

tingo

140k/yr affords you a 2000/mo crappy studio in manhattan, if you're lucky. And you want be saving much.

Dirk

I have zero sympathy for an idiots who continue to live beyond their means even after they've lost their jobs.

yetanotherdamneduselessaccount

WHERER MY JOB?

penetrode

$60k severance? That is a nice/fat severance. White collecting unemployment and being thrifty with $60k...can't be that hard to survive? I was laid off back in May and fortunately finally found a job which I start this upcoming Monday. As for my severance, I invested it in under-valued stock. It's really nasty out there right now, especially in new york city...however you can navigate, just use common CENTS...

inoyourider

"A fool and his money are soon parted"

Ha-Ha

Learn a budget.

And these idiots probably had jobs relating to finance too.

nicemarmot

Hmm, that's funny. I lost my job and I'm completely fine. Partially because we still have my fiance's income, but also because we never spent every penny we earned! It wasn't too hard to cut back because we weren't living extravagantly. Our two big luxury expenses were the dogwalker and the cleaning lady, both of which I had to lay off after I got laid off. But once we'd done that, financially, we were fine.

I'd like to know what these people would have done living like I did one summer in rural Wyoming, where I survived on $45 a week from my student job. Would they starve to death and you'd find their corpses once the stench leaked out of the house?

pinball29

They deserve every minute of the hard times they are going to go thru now. If they are that clueless to reality then its way past time they learned the hard way. They should talk to the flower delivery guy for tips on how to live now. Hes probably way happier than they will ever be.

robingee

You don't put ketchup on ramen!

grandzu

You don't win friends with salad.

Jen S

Ughhhhh, I just got that tune out of my head, after a month of mental conga lines.

Spirit of 76

I have a friend who was unemployed for almost 2 years, although admittedly not in NYC. He somehow managed to make it through all that time on only $12k, which paid for rent, food and his bills, including cable and ISP.

ed_Extinct

Honestly, I cannot believe these people are that self absorbed. When there's no money coming in, you can't spend like a drunken sailor (Happy Veterans Day)— making your own tea or coffee is usally the first thing you should start doing, followed with: breaking down your expenses; what do I need and what I do not need.

Roof

Food (Water)

Bed (warmth)

Obviously these are the bare essentials, but if you're serious about stretching the severance, then get rid of everything and no perks: no manicures, expensive haircuts, expensive dinners, booze less, smokes less, watch more basic cable tv or pick up a book god forbid.

People are so F%&KING stupid...!

jaycjay

Wait... they're self absorbed, because they're not paying close attention to what they do and do not need?

I guess that term doesn't mean what I thought it did.

r1b2

Schmucks. Your parents are ashamed and disappointed that you've turned out so stupid.

eyekantspel

while there's no defense for these dummies spending $$ on flower service, etc., the truth is that, in this economy, six months is not long enough to find a white collar job. Most high income earners have credit card, rent and mortgage obligations commensurate with their income. When that income stops, those obligations continue. They can't just break the lease on the BMW, sell their $900k apartments and start living on $3k a year. The real message here is to those folks who are still employed. Cut your expenses now. Start saving now. If you wait until you're laid off, it's too late.

whatstheproblem

It must be a tough adjustment. After they spend the last $600 they don't have far to go. Newark is the perfect place to pimp out your wife. Oh that's right she's already looking to leave you for some other douche who has a job.

maevemealone

I hope they used fake names because they are idiots! I stretched a pretty small severance to cover almost a year of NYC living. Learn to cook, don't leave the house if you aren't prepared to buy something you absolutely need and ask you cable company what premium channels are on special! I got many months of free movie channels by just asking.

NannyState

They couldn't just spend it in Atlantic City like everybody else?

potsmoker

60K ????????????

thats like 5 years of rent,

$250 for a cleaning lady!!!!

3 cars and $200 a month for flowers!!!!

hahaha...good riddance, people like that made nyc boring and more expensive to live in.

amazing, there was no mention that the MRS had a job.

now that she used your $$$ up, im sure shes looking for a divorce lawyer!!!

all that after moving from Detroit to South Carolina!

what the heck!!! screw them, no tears for you.