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DIY safety nets.

January 7th, 2009 Jessica Hagy Posted in finances, perception |


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15 Responses to “DIY safety nets.”

  1. Dave K Says:
    January 7th, 2009 at 2:12 pm

    So I’ll only get laid off when I’m only moderately afraid and best prepared?! WOO!

  2. NSK Says:
    January 7th, 2009 at 2:31 pm

    First, the problems in today’s economy are exacerbated because “layoffs” are catching people when they may not be at an optimum savings level. People are being laid off with little savings with which to get by.

    And, when one does get laid off with limited savings, I would believe fear will be pretty high.

    Why would savings drop as fear increases past the “layoff” point? Is it because people might spend to hoard (Y2K comes to mind!!).

  3. changos Says:
    January 7th, 2009 at 2:44 pm

    The savings axis represent what you have as savings. Past the layoff you start using your savings. People tend to maintain the same lifestyle creating a sharp slope that at some point stops and a lighter but lengthier slope continues until you have nothing left.

    I you count your house as part of savings there is going to be a very big drop off after layoff.

  4. CJ Says:
    January 7th, 2009 at 2:45 pm

    NSK —

    When people are afraid they might be laid off, they start saving money. Once they are, in fact, laid off, they have to start depleting their savings, and as the savings deplete, the credit rating tanks, and the house is gone, the fear intensifies.

    People aren’t spending to hoard. They are spending to keep themselves and their families fed and clothed.

    Jessica, this is among the best of many excellent posts. It puts the experience of far too many people in one simple, accurate graphic. Thank you.

  5. Charles-A Rovira Says:
    January 7th, 2009 at 3:41 pm

    That’s about right.

    I got laid off in October of 2007 (yep, that’s a 7,) and the pile of cash has been dwindling since then while the worrying about it has steadily been increasing.

    I’ve gone back to college in communications to give myself something with some future, ’cause IT management in Banking was NOT IT. (Last year saw my ENTIRE customer base implode.)

  6. Jen Shizuka Says:
    January 7th, 2009 at 4:08 pm

    Ahh, so the X axis is both Fear and Time. Gotcha.

  7. Gary LaPointe Says:
    January 7th, 2009 at 4:30 pm

    You need to put a spot on there for when my mom starts freaking out.

  8. Josh Says:
    January 7th, 2009 at 5:01 pm

    Savings?

    Oh, that’s what I’ll hopefully eventually have once I’m able to pay off my student loans.

  9. Dolce Says:
    January 7th, 2009 at 7:57 pm

    We must only fear… Fear itself. Savings accelerates layoffs… lest, we wish to become reflective & contemplative orientals.

  10. wrot Says:
    January 7th, 2009 at 10:37 pm

    You could have done better with 2 lines for fear and savings.

  11. Justin Says:
    January 8th, 2009 at 12:50 am

    Why does fear increase while savings is increasing? There are points both to the left and right of layoff where savings are very low, yet in one case you have little fear and the other you have a lot of fear? I would think any time I have little or no savings I would have relatively a higher level of fear. But then I guess when you start out with nothing, you’ve got nothing to lose.

    I would use the x-axis to represent time, and overlay the savings graph with a second graph of a parabola opening upward to represent fear.

  12. Stephen Says:
    January 8th, 2009 at 3:32 am

    I think jessica was just taking on assumption that fear increases with time. I suppose that in a situation like this, it does.

  13. Zeitgeist Chart « MRod says: Says:
    January 8th, 2009 at 12:19 pm

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  14. vivek Says:
    January 8th, 2009 at 1:41 pm

    can u add me to your link list? Will add you to mine as well…just let me know wen u do it!IGNORE this if u rnt intrstd…happy new year

  15. M.J. Says:
    January 17th, 2009 at 10:06 am

    Of course, you also need to include the outliers. Those with no need and no fear are people such as George Bush and Dick Cheney. The others with high fear and high savings are stuffing their money into the mattress.

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