| How do I make it through this economy? By Helen Dutton |
Q: The current economy is scary – the news is full of how bad it is every day. It scares me and I’m not sure how I’ll make it through this. What
can I do?
A: There is a lot of scary news out there! You can’t help but hear about the dire straits of our economy just by turning on the radio, looking
at a newspaper, or going on-line. While the general economy is struggling, there are plenty of actions you can take to protect yourself.
1. Ask yourself “What specifically has changed about MY financial situation in the past 12 months?” When I ask that question lately, the
answer eventually is, “Hmmm…not as much as I thought.” Many people are making at least the same money that they were a year ago,
and while groceries certainly cost more, other expenses have not changed dramatically. Sometimes when I ask that question, people
will bring up the loss in their retirement funds; unless you will be accessing those funds in the short term, a well-managed portfolio will
weather this storm just like a well-built boat. The general economy will rise and fall (see my previous article about the ebb and flow of
money in the Applaud, Fall, 2008 issue or at http://www.applaudonline.com/pdfs/fall08/page45_63.pdf); when there is a general
financial storm, ride it out rather than jumping ship.
2. Turn the news off. While it is important to stay current, it is not helpful to dwell on it, especially if there is little that you can do about it. I
could listen and track the economy daily, or I could check in once a week or two and get a general picture. Guess which one feels
better.
3. I’ve said it before, and I’ll say it again: know where you are financially right now. Assumptions are dangerous in just about any
situation (think relationships!) and money is certainly included. Use Quicken, MS Money, or a spreadsheet, but know where your
money is currently going. Keep a money journal for two2 weeks and record everything you spend money on – coffee, bottled water, the
football lottery at work. If this brings up fear, explore it – stay with the fear and poke some holes in it. Are your fears founded in fact or
beliefs?
4. Once you have data about your current situation, review and see what you can change. If your first reaction is, “Nothing!” then here
are three alternative ways to ask the question:
a. Get a fresh perspective. Think of a friend or advisor with whom you trust sharing financial information. Ask your friend to review
your data and make suggestions as to what changes you can make (and you can do the same for your friend). Then make the
changes.
b. When asked to save 5% or 10%, we are already thinking small and often can’t think of any changes. Instead, imagine that you need
to cut 50% of your spending; what would you change? Chances are, you will have many more ideas! Make one of these changes.
c. If you are still struggling to find changes you are willing to make, ask yourself, “What changes will I try for six months?” For
example, if the idea of going without your afternoon soda or latte is too hard, tell yourself that you only have to make the change for
six months. You may even find additional unexpected benefits in other areas of your life from these changes.
Helen Dutton is a Business Coach and owner of A Vision Of Your Own. She has over 16 years of financial, operational and managerial
experience in the Corporate arena. She is a graduate of Coach U and a member of the International Coach Federation. For more
information call (603) 529-2345 or visit her website at: www.avisionofyourown.com.
can I do?
A: There is a lot of scary news out there! You can’t help but hear about the dire straits of our economy just by turning on the radio, looking
at a newspaper, or going on-line. While the general economy is struggling, there are plenty of actions you can take to protect yourself.
1. Ask yourself “What specifically has changed about MY financial situation in the past 12 months?” When I ask that question lately, the
answer eventually is, “Hmmm…not as much as I thought.” Many people are making at least the same money that they were a year ago,
and while groceries certainly cost more, other expenses have not changed dramatically. Sometimes when I ask that question, people
will bring up the loss in their retirement funds; unless you will be accessing those funds in the short term, a well-managed portfolio will
weather this storm just like a well-built boat. The general economy will rise and fall (see my previous article about the ebb and flow of
money in the Applaud, Fall, 2008 issue or at http://www.applaudonline.com/pdfs/fall08/page45_63.pdf); when there is a general
financial storm, ride it out rather than jumping ship.
2. Turn the news off. While it is important to stay current, it is not helpful to dwell on it, especially if there is little that you can do about it. I
could listen and track the economy daily, or I could check in once a week or two and get a general picture. Guess which one feels
better.
3. I’ve said it before, and I’ll say it again: know where you are financially right now. Assumptions are dangerous in just about any
situation (think relationships!) and money is certainly included. Use Quicken, MS Money, or a spreadsheet, but know where your
money is currently going. Keep a money journal for two2 weeks and record everything you spend money on – coffee, bottled water, the
football lottery at work. If this brings up fear, explore it – stay with the fear and poke some holes in it. Are your fears founded in fact or
beliefs?
4. Once you have data about your current situation, review and see what you can change. If your first reaction is, “Nothing!” then here
are three alternative ways to ask the question:
a. Get a fresh perspective. Think of a friend or advisor with whom you trust sharing financial information. Ask your friend to review
your data and make suggestions as to what changes you can make (and you can do the same for your friend). Then make the
changes.
b. When asked to save 5% or 10%, we are already thinking small and often can’t think of any changes. Instead, imagine that you need
to cut 50% of your spending; what would you change? Chances are, you will have many more ideas! Make one of these changes.
c. If you are still struggling to find changes you are willing to make, ask yourself, “What changes will I try for six months?” For
example, if the idea of going without your afternoon soda or latte is too hard, tell yourself that you only have to make the change for
six months. You may even find additional unexpected benefits in other areas of your life from these changes.
Helen Dutton is a Business Coach and owner of A Vision Of Your Own. She has over 16 years of financial, operational and managerial
experience in the Corporate arena. She is a graduate of Coach U and a member of the International Coach Federation. For more
information call (603) 529-2345 or visit her website at: www.avisionofyourown.com.
The Applaud Women publication is dedicated to women in New Hampshire and northern Massachusetts. It's purpose is to inspire, inform, and
applaud local women. The core of the magazine is our inspirational women's articles, most of which feature local women but occasionally we are
able to interview national women who we feel provide a unique inspiration for our readers. Our other articles cover topics of interest such as food
recipes, home, garden, beauty, health, fashion, dating, parenting, seniors, finance, business, hair care, skin care, advice, real estate, insurance,
weddings etc. Each issue has a feature section as well. Many of our articles are written by local business people who provide information
relevant to their business expertise. The Applaud Women website is also a resource center for local women including the most comprehensive
listings of Restaurants, Weddings, Female doctors and Hotels. It also includes a number of informational pages with links, articles and RSS feeds
to both local and national websites of interest to women in NH & n. MA.
applaud local women. The core of the magazine is our inspirational women's articles, most of which feature local women but occasionally we are
able to interview national women who we feel provide a unique inspiration for our readers. Our other articles cover topics of interest such as food
recipes, home, garden, beauty, health, fashion, dating, parenting, seniors, finance, business, hair care, skin care, advice, real estate, insurance,
weddings etc. Each issue has a feature section as well. Many of our articles are written by local business people who provide information
relevant to their business expertise. The Applaud Women website is also a resource center for local women including the most comprehensive
listings of Restaurants, Weddings, Female doctors and Hotels. It also includes a number of informational pages with links, articles and RSS feeds
to both local and national websites of interest to women in NH & n. MA.
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