Wow, finances have really been whacked the last few weeks. People have been laid off or had hours cut and have been hoarding necessities which can result shortages and price gouging. What are we to do? If you have been working the financial independence plan (eliminating debt, saving, etc.) that we have been teaching for a while, you probably won’t feel the panic like those who live paycheck to paycheck. Regardless, here are a few things to do to help with the money crunch: Prioritize your bills – we have talked about that in previous blog posts. Now is a good time to revisit that (see Decisions, Decisions from January 16). See who might be offering assistance or a payment-skip, if you’re desperate. Really reduce your spending (see Do You Know Where You Stand? From January 23). Reach out to creditors, many have hardship programs. Some can even be restructured. Stop any automatic payments. Watch for the price gouging I mentioned. There are 2 sites that show historic pric...

Someone I know recently made a trip to the grocery store. Another shopper thought she was buying too much bread for her family of nine and assaulted her. My friend is shaken but okay. The assailant was escorted from the premises. Unfortunately, emergencies bring out the worst is some. Whenever there is some sort of trauma going on in the world (and when is there NOT these days?) all kinds of crazies are going to come out of the woodwork. Don’t fall prey to one of them. You’re probably going to get phone calls from people claiming to be from different charities that are raising money for this and that. I used to try to tell them “No” politely. Now I just hang up. Or, better yet, don’t answer numbers you do not recognize, even those with the same area code you have. If you can and want to contribute to a charity, use one you have used before. While disasters bring out the scary, they also can bring out the best of us.   Be one of them. We are all spending more time a...

This subject has made too big of an impact to be ignored, so let’s address it. In light of all the panic over the Coronavirus, the stock market is doing some crazy things. Don’t join in the frenzy. I am going to quote one of my mentors here because I cannot think of a better metaphor to help you understand what you should NOT do. Do not pull your money out of your investments. I personally know someone (who I thought was pretty money savvy) who totally ruined their retirement in 2008 by making that move.  That quote I mentioned? Here goes…Dave says, “The only way to get hurt on a roller coaster is to jump off!” ( https://www.daveramsey.com/blog/how-to-survive-the-roller-coaster-economy ). He’s right. Just grit your teeth and enjoy the ride. Rant over.

With your newfound get-out-of-debt plan, you’re going to pick up new lingo as well. Over and over you might hear yourself saying “we cannot afford it” to yourself, your spouse, and most likely your children. You are right on the money, but there are better ways to say it–always speak in the positive. And be especially careful what you say around your children. According to an article by Salish Wealth Management ( https://www.salishwm.com/2019/09/do-you-understand-your-emotions-about-money/ ), we learn our money habits at a fairly young age by observing our parents. “The seeds of money scripts are planted in childhood, watered by observation, and eventually grow to influence your emotional beliefs about finances as an adult.” How you deal with the situation and what you say   about it will make a huge impact on your children’s financial wellbeing. Instead of telling anyone “we cannot afford it,” try this: “We are choosing not to spend our money on that right now." You can...