The entire nation is in a state of upheaval right now. Everywhere you turn there are negative reports of unemployment, company closings, and depressed real estate values. One out of seven houses are vacant with 25 % of those being second homes. Defaults on credit cards, car loans, and mortgages are rocking Wall Street.
What do we do when everything goes wrong and we’re stripped of possessions? During the Great Depression some who lost their holdings jumped out the window of high rise buildings to their death. Some self-medicate, get addicted, and self-destruct. Others become bitter toward people in general and isolate themselves. The number of people turning to crime as a solution is on the rise. Negative behaviors are not a solution.
There are seven things you should do when you hit bottom financially:
First, re-evaluate your friendships. Relationships are re-shuffled as fair weather friends avoid you because they know you are hurting and don’t want to expose themselves to hurt. You need encouragers. Some people are takers, some are givers. It’s easy to figure out who’s who when you’re broke.
Secondly, simplify your finances. Debt is a cruel taskmaster. If you don’t pay, they come and get their stuff. My advice is to adopt a pay as you go policy. If you don’t have the money, don’t buy it. You don’t need a $30,000 car to get where you’re going, a $2,000 car will get you there fine. A lifestyle change will serve you well even when your money comes back.
Third, prioritize who get’s paid first. If you are carrying a heavy debt load and can no longer pay for it, you have to decide what you pay for and when you pay for it. This is survival time. The basics of food, shelter, and utilities come first. Transportation comes next. Unsecured debts will have to be ignored until you get your income back up. Learn how to block calls from debt collectors or even better you can notify them with a registered letter not to contact you by phone anymore and according to federal law, they must conform. They all threaten you with legal action and judgement liens. The truth is, the longer the liens are in the public records, the less they are worth. Years from now, they can be bought for pennies on the dollar. Don’t worry about garnishments if you’ve lost everything. You can’t squeeze blood out of a turnip. Before anybody spends money on attorneys to enforce collection they will do an asset search and find out that you are truly broke and not worth the bother to spend money on. If fear and stress are closing in, stop, take a breath and ask, “what is the worst thing that could happen to me in this situation?” Expect the best. Be prepared for the worst. Working through this in your mind will give you a great sense of empowerment.
Fourth, reward yourself with a little walking around money. Try to keep a little cash on hand. This can help to take some of the pressure off. Nothing is more empowering than a wad of cash in your pocket.
Fifth, make a planto get your income back up. The internet is full of job opportunities and websites where you can post your resume. Capitalize on your existing skills and experience. Don’t be afraid to apply for a position that you have the experience for even if they require a degree that you don’t have. Most employers prefer experience over framed degree certificates on your wall.
Sixth, dream big dreams. Birth a new dream. Stop looking back and start looking forward again. You must be pursuing a dream to catch one. Without a dream we die on the inside. The real battle is not paying off bills, but keeping our hopes and dreams alive so that we can live to fight another battle. Poverty is not a financial state, but a crippling of the mind. A healthy mind knows how to dream.
Finally, take time off to have fun. There is an old Chinese proverb that says, “The bow that is constantly bent will soon cease to shoot straight.” There are many ways to have a good time without spending a lot of money. A picnic in the local park. A drive to the beach (I live in Florida). Plan a visit with some relatives or friends that you haven’t seen in a while. Don’t lose your sense of humor or the ability to laugh at yourself.
Remember that your life is not your money or your possessions. Your life is your faith, your character, your family, your friends, and your dreams. – Jeff Burke
