Will COVID-19 Be Your ‘Why’ to Financial Freedom?

Key questions to change your position and your attitude

When the dust settles and we have returned to some normalcy after beating back the Coronavirus, we will look at the world and our lives in a much different manner.

The obvious changes will be focused on being more conscious about our personal habits and gaining a newfound respect for relationships. The other profound change is a much more serious one – we as Americans need to start preparing for the next economy killer by being financially self-sufficient.

The thought of a virus, an invisible threat, bringing the global economy to its knees was considered unimaginable, the likes of a Hollywood science fiction movie. Over the past few decades, Americans have been conditioned to spend, spend, spend. The only way to live was to use your credit card, go into debt, and live above your means. According to CareerBuilder, 78% of Americans live paycheck to paycheck and 66% would struggle to pay for a $1,000 emergency. Over the past few weeks, we’ve seen businesses forced to close and employees being laid off. With the majority of Americans not being able to make ends meet by losing just one paycheck is a cause for great concern. We cannot rely on the Federal Government to make our lives whole; we must protect ourselves and our family.  

As Warren Buffet says, “only when the tide goes out do you discover who’s been swimming naked”. Your financial decisions seem good when everything is going well but as we’ve seen, things can change in an instant causing great disaster for you and your family. 

If this pandemic has taught us anything it’s that we need to rethink our way of life specifically our spending habits. We must prioritize getting out of debt, building an emergency fund of 3-6 months, and regularly saving for retirement so that when times get tough (and they will get tough again) we are prepared to weather the storm. The ones who are in control of their finances are less stressed and less anxious because they know they are in a position of strength financially.

Becoming debt-free, with no car payments, a six-month emergency fund, and peace of mind is a choice. It’s a process, but more importantly, a mindset. It doesn’t mean you lose freedom. It’s about gaining confidence to do more and be there through good and bad times.  

Is it easy? No. Is it doable? Absolutely!

To start, just ask yourself these three simple questions:

1. What is my current monthly spend and why? Do you know where your money is going? This is the beginning of the process – budgeting – giving every dollar a name.
2. What is my family’s ultimate goal? Is it a first home? College for the children? Summer House? Pay off the mortgage? Everything you do should be based on this destination.
3. What type of balance can I afford between paying my bills and enjoying my life? Life must be a balance so leaving money for entertainment and essentials is critical as long as it is within your means.

Fast forward to the next economic downturn and uncertainty. How would it feel if you were financially at peace? 

My challenge to you is, if not now, when? When will you say enough is enough? Let’s look back on this negative and stressful time and say this was the moment that changed the rest of my life for the better! What other disaster needs to happen before you act? It won’t be easy, but nothing in life that is worth doing is ever easy! 

 Stay Safe and Healthy,

Justin Grates | Financial Coach

https://www.jfgfinancialcoaching.com/