President Barack Obama plans to impose a pay cap on executives whose firms receive government financial rescue funds. It’s shocking that some companies have given out bonuses while receiving government aid. As sandwiched boomers, you may be in the midst of making some critical decisions yourself. Here are some ideas that may help in the midst of this financial crisis.
Get to know the subconscious money script that you learned in childhood from your parents. If your family was extremely frugal, you may follow their example and have the same fiscal habits. Or, having felt deprived, maybe you go in the opposite direction and spend with abandon. Understanding the dynamics of how you spend and why will free you up to explore new money management options.
Turn calamity into catharsis. Pull back in order to reach your goals and see thrift as a virtue. Make it OK to put off buying a new car or a new dress now so that you can have a better life later. Begin to put some money, no matter how little, in personal savings every month. As you make sacrifices, keep track of your values – like restraint, accountability, self-reliance, working hard, determination.