Are you uncertain about your finances? In my continuing series about finding certainty in an uncertain world, we’re focusing on an area that most people consider pretty unreliable – especially over the past several months.
If you’ve lost your income, suffered illness or experienced higher than normal expenses, I’m so sorry. I know how stressful that can be.
Job loss is utterly catastrophic if you’re not prepared for it. But even if you didn’t lose your income, the resulting economic crisis has everybody on edge. So what do you need to do to create certainty in the area of your finances?
Here are some ideas – straight out of the 10-Week Oola Coaching Program:
• Do everything you can to eliminate small debts. You can also return, relinquish or sell expensive items you financed that you no longer use (like sports equipment, time shares, or that vintage motorcycle). Debt is not only disheartening; it takes away options and is the #1 stress point in marriages.
• As quickly as possible, put together an emergency fund. Unlike saving for a car or vacation, this money is used only for predicaments you would have to go into debt to pay for. Start small by saving a month’s worth of living expenses, then build to 7 months’ worth.
• Keep investing for your future while you’re paying down debt. Lower your expenses as much as possible to create extra cash every month. Then use that extra money: 45% toward debt elimination, 45% toward retirement investments, and 10% for having fun. Make it a game, keep score and stay on track.
• Regardless of your age, start investing consistently towards your retirement. Living modestly in order to free up cash to invest is easy when you have a goal. Find an investment advisor you trust, then ask them to help you plan and invest regularly.
• Get your estate plan in order. The uncertainty of a pandemic should motivate anyone to complete their will, trust or other documents if the worst should happen. It’s just what smart people do.
Creating financial certainty during uncertain times takes work. As a coach who can help you create a plan, stay on track and be accountable for results, I’m here for you.
Message me and we can jump on a call to chat about it. Or check out the 10-Week Oola Coaching Program I deliver for clients who want more balance, less stress, and more happiness in their lives.
Then stay tuned for my next post where we’ll take a look at a simple technique for improving your family relationships. Don’t miss it.
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