Financial Contingency Planning

Do you feel like your life is spinning out of control? Have you been part of one of the many recent lay-offs? Are you struggling to make ends meet? Are you looking for ways to cut back on costs?

We need to evaluate our personal situation just like companies are doing during these times:

1. Make a contingency plan.
What would I do if I was subject to a salary cut? Or lost my job? Or had a medical emergency expense? You need a contingency plan and an emergency fund.

2. Protect the core - Food, clothing, shelter, utilities and transportation.
Think of this as similar to Maslow's Hierarchy of Needs. You have to build walls of safety around you and your family so that you can focus on the other things you need to take care of. I saw someone describe this as "Fortifying Your Fortress".

3. Identify the people who matter most and keep that group strong.
Family and friends are extremely important especially when times are tough. Get to know others in your field of work so that if you are subject to a lay-off, you have a network to fall back on to help you find something new. Sites such as Linked In are great.

4. Shape up your finances.
Do you know what your monthly expenses are? Do you know where you can cut back? Do you know how much you owe on your credit cards and what the interest rates are? When was the last time you balanced your check book?

5. Involve the entire family.
Get your kids involved. They have amazing ideas. Besides, if you get buy-in from them, they'll learn and will help out more. Try low-cost, no-cost ideas. Present a united front: "We are all in this together."

6. Keep the lines of communication open.
Let friends and family know what is happening. It is so much easier for you to decline going out to restaurants with friends if they know your situation and/or goals. Stay in touch with your family. Email and social networks make this easier to accomplish than ever before.

#FinishingStrong #100DaysToGreat

Auto Pilot Spending and Reprogramming the Robots

Have you ever been driving down the road then realize suddenly that you don't remember driving past a certain point then realize your brain was on autopilot? Have you ever gotten on the freeway to go some place and find yourself automatically heading in the direction of your job because you do that several days a week?

I think our spending habits are sometimes like that as well. We always shop at the same stores, eat the same foods, get gas at the same place, pick up take-out since it is convenient, and money just pours out the door through these habits.

We need to reprogram our robot, in other words, our brains. I can hear part of us already screaming, "Danger! Danger! Will Robinson!"

For one month, track each and every penny you spend so that you can see where you money goes on a normal basis. This is to help you become more aware of how you are spending your money and change the autopilot habits. When you determine where you want to change your spending habits, you control your money instead of it controlling you.

Our robot isn't the only one that needs reprogramming. Kids and spouses will need to be reprogrammed as well. My kids will say, "Hey mom, how about a soda run?", or "Want me to pick you up a cup of coffee while I'm out?", or "You know what sounds good? Chinese Food.  Let's go out!"

I've discovered that we have trained our kids to spend our cash. Time to reprogram their robots as well because now, only *we* get to determine where our money goes. For me, I say it goes towards becoming more financially stable.

By reprogramming our responses to "No thanks, unless you are buying", it should help reprogram theirs. Isn't it funny how our kids are willing to have someone else spend their money but when you suggest that they buy, they change their minds in a hurry?

Time to Reboot! #FinishingStrong #100DaysToGreat