You may already feel the tendrils of it, just brushing the edges of your consciousness. You may have started to pick up on words like “recession,” or “redundancy,” and you’re probably going to start to hear words like “repossession” and “bankruptcies” soon. You are going to need to stay strong. You are going to need to focus on practical steps you can take now to shore up your financial resilience over the coming months. When you know that you can, as the phrase says, “put food on the table,” the stress goes away. Putting food on the table, keeping the lights and heat on. These are the foundations to a happy life, a life with no stress and financial resilience is a wealthy life.
Perhaps you have heard of Maslow’s Hierarchy of Needs. A psychologist named Maslow spoke about the order of human needs, and at the very start (or base of his triangle) we need safety and security–which is really about a physical place in which to live where we feel safe–and food, as well as what he calls “hygiene factors.” Once you have met those foundational needs, you can move up a level and this repeats until you come to the very top where you’re starting to “self-actualize.” This is where you’re really stepping into the essence of who you are. So, that’s the philanthropists and artists and fulfilled people.
According to Maslow, you can’t move up to the next level if you haven’t taken care of the foundation level. The talk and the fear that’s coming down the line about, global prices rises, inflation, recession and redundancy, can actually do is cause you to contract, cause you to feel paralyzed, stop you from making any decisions–never mind good decisions–and potentially cause you to make bad decisions. If your need for security is compromised, you may find yourself stuck, blocked from moving up and on with your life.
Now is the time for you to take care of your own financial situation. If you are prepared and things start to get a little financially tighter, you will be in a position where you can share with others, either giving your time to go and help, or giving donations, or maybe helping out a family member whose bills are too high for them to easily afford.
There are things that we can do now that might look like we are contracting in, though we’re not. We’re just making sure our own house is in order so that we are stronger and able to survive going forward. And it’s a bit like that scenario on airplanes where we must put our own mask on first so that we can then help the people that are around us. If we do not put on our mask first, we will become unable to help our families, and we will suffer as a consequence.
Pay attention to your money.
Know how much is coming in. Know how much is going out. That’s the basics. But what you should also look at is where it is and what it is doing. For example, I recently noticed a new charge on my bank account that resulted from my bank raising the minimum balance required for free banking from 2,000 pounds to 6,000 pounds (without notifying me, of course!). Because I pay attention to where my money is and what it is doing, I caught that early on and fixed the problem before the charges mounted over time.
If you count your money, you know where it is and you know what it’s doing. You know what you are being charged. You also know whether you’re actually taking care of your money in the right way. This is the first and easiest thing you can do to bolster your financial resilience. Know where your money is, what it is doing and whether it is working for you or against you.
The second thing you must do is to look for opportunities to either save money or make more money. If we think about opportunities to save money, that can be looking at who your providers are, that can be checking where you buy your petrol. If we’re all worried about heating bills, how can you insulate your home? Is it a good time to get solar panels? Do you always need to have the heating on, or could you simply put on another jumper?
If you are looking for ways to increase your income, reflect on the services or goods that you offer. As a businessperson, what else can you do in terms of listening to the needs of your clients? Is there an opportunity for you to make more, do more, offer more? Whether you run your own business or whether you’re an employee; have you noticed a shift in the needs of your clients, or can you predict the next shift in the needs of your clients? Be creative and be adaptable during these uncertain times. This approach has the potential to strengthen you as a business owner.
Replacing your income is definitely another opportunity. Look at how you can take the resources that you’ve got now and invest them in property or in some other form of cash-generating business so that you are in a position where you can bring more money into your family or grow personal wealth.
First and foremost, what you need to be doing right now is exploring how you can avoid the fear that is going to prove prevalent in the mainstream media and on social media. Fear messes with your mind, as we have already said. How can you protect yourself? The way that you can fight emotional attack is to put on your logical armour. This means understanding what’s going on and how it truly impacts you. You have time–if you act now–to prepare yourself to become more financially resilient.
So, forget fear and focus on your goals and motivation first. Remember, count your money. Where is it? What is it’s doing? Look for opportunities to save, look for opportunities to make more. Make more within your business, both as an employer or employee. Think about making creating a second source of income a priority. This is the time to be observant and adaptable, not emotional, and afraid.
I will happily have a no-obligation conversation with you. Talk to me about what position you’re in right now and what decisions that you’re grappling with. And let me help you comb this out so that you can see what your priorities are. As always, I love when people get in touch to chat about my articles and podcasts—and anything else, really. For more impactful wealthy life tips, please visit my website www.vickiwusche.com, listen to my podcast here and here, or schedule a free call with me! Stay strong and grounded and make a positive plan. Until next week!