Good News - Salary Adjustment

Last month I posted on the impact of The Great Recession on our career and salary . Overall, our salaries from our professional careers were down between 2008-2013.

 But, I am happy to report that I just received an upward salary adjustment, a 7% increase!, which means a couple of things.  First, this kind of increase outpaces inflation.  Second, this increase almost brings me back to my pay level in 2008.  Third, this increase almost makes up for Mr. Sam's pay cut that he took at his new job (post layoff).  Fourth, this big increase reflects on the kind of work I am doing, the level of complexity, the results I am attaining and the fact that my company is placing an increased value on me (it feels good).

I think, although I've not done the nitty gritty math, that our salaries are still down between 2008-2013, but now down just a bit.

2008 - 2013 The Great Recession Check Up - Part III

Okay, so far we are one and one.  While we are doing well on our savings/retirement plan, see Part II, our occupation based salary is flat/slightly down after five years, see Part I.

Real Estate

First the good news, we are making decent progress in paying down our primary mortgage.  Last year we refinanced into a 15 year term with a 2.75% interest rate which will save us (between the reduced term and the reduced interest) $180,000 over the life of the mortgage.

The other good news we have is that all three of rental properties are rented and paying for themselves.

So, now the bad news.  We live in South Florida and our rental properties are located in South Florida and if you know anything about the real estate bubble you know South Florida got hit hard.

In 2008 our primary home was valued at $465,000.  At present I have the value at $399,000 which is based on the very thorough appraisal we had done last year as part of our refinance.

In 2008, our three rental properties and our vacant land were valued at a total of $823,920.  At present, I have our investment properties valued at a total of $606,350.

So, in total, over five years we have lost, in equity, $283,550.  Actual lost equity is likely even higher in that I have no idea if we could sell any of our properties for the current value.

2008 - 2013 The Great Recession Check Up - Part I

This morning, on the news, there was a story about where we are, as a society and as an economy, 5 years after the great recession.

I actually started this blog during 2008 and went back to read some of my posts during that time.  So, I am undertaking our own Great Recession Check Up.  

Career and Salary/Benefits

In 2008, both Mr. Sam and I had a job change in that we each changed companies.  

While my job change was voluntary, I would say that my departure from my prior company was caused by the recession.  Meaning, I could see that my opportunities for advancement were low and the amount of work/projects that I was handling was reduced.  As such, I felt like I had to make a change and therefore took a pretty big pay cut in 2008 when I changed companies.  But, my career and my life vastly improved even with the big pay cut.  Then, in my new company, I ended up taking another smaller pay cut which lasted about another year (which was directly caused by the recession).  Since 2010 my pay has steadily increased and I am generally happy with my job, my company and my career.  But, I'm still making at least 10% less, I calculate it as 13% but I'm not totally sure, than I was before I resigned from my prior job in 2008.   

Mr. Sam also changed companies in 2008.  His change was totally voluntary and a good career move for him.  He increased his salary and his benefits were great (his awesome 401k match directly contributed to our progress in that area).   And, his health benefits were so great that I ended up switching to his plan and we saved about $3000 each year in doing so (over 5 years).

Now, due to Mr. Sam's layoff he ended up taking a pay cut with his new job.  He is not happy about the pay cut, but I'm happy he is employed in a job that is a perfect match for his education, skills and background and I'm hopeful that the pay will follow.

As a result, overall, between 2008 and 2013 our compensation from employment decreased.