RealSmartica

Educate parents and young adults in practical money matters

Facebook
LinkedIn
Twitter
  • Home
  • Contact
  • A Resource for Schools
  • Podcasts
  • College Planning
  • Financial Housekeeping
  • Money Lessons for Kids
  • Women and Money

Survival of the Fittest

September 30, 2011 By Dina Isola Leave a Comment

As hard as we try to control our environment, the reality is that things are always changing; things that are beyond our control.  Adaptability becomes the great separator between surviving well, getting by, and being destroyed.  How we choose to move forward, and how well we anticipate and adjust to circumstances makes all the difference to the outcome.  Those things we do control.   Survival mode isn’t a bad thing; it actually forces us to be more creative and look at our challenges with urgency (and perhaps, a fresh eye).  Consider examining your worries and see what creative solutions you can come up with.  Be an active participant in your life, and don’t wait for the ceiling to come crashing in before acting.  Anticipate well and make your move before you need to, in order to strengthen your chances for success.  Here are some actions you can take now:

Increase Job Security.  One of the greatest fears in a weak job market is being laid-off.  In addition, there are jobs that are being exported overseas.  Worrying and complaining about this won’t change the situation.  Take this time to formulate a Plan B, and be wise to the writing on the wall.  If your job (or your spouse’s job) is always dangling by a thread, it’s time to look at the skills acquired and the contacts made.  Can this experience translate to another industry?  For example, an unemployed teacher might pursue a career as a corporate trainer, which requires the ability to communicate and instruct.

Consider freelance or consulting opportunities available (provided your employer doesn’t forbid this).  Would an investment in more education or training improve your job prospects?  Is there a side business that can be started with little or no capital (ideally, that would allow you to keep your full-time job)?  Maybe you have been itching for a change and want to explore a passion. Or, maybe you see a need that isn’t being filled in the market right now.  Again, use the experience and skills you already have to turn this into something profitable.  Brain storm, and write down everything you can think of, no matter how far-fetched it may seem.  You may end up with a clear idea of where you should be personally and professionally.

Tap Resources.  Local colleges and universities and libraries have education and job placement counseling. There are small business development centers that offer free mentoring to start-ups, including assistance with fleshing out your idea, developing a business plan, marketing and management issues. Novo Resume and Job Zone can help you match your talents with prospective careers.  There are resources for retired/mature workers looking to transition back into the workforce. Women and veterans have agencies dedicated to working with their needs.  The Small Business Administration, SCORE, and the US General Services Administration are some websites to explore.

Work Hard.  This sounds obvious, I know.  But, how we invest our time has a lot to do with our success.  Two hours of television watching could be better spent planning a new business, or going to school to get additional training.  Of course we all need to unwind and recharge, but find the time to invest in getting “fit” for the challenges that may lie ahead.

Budget Wisely.  A budget is only as good as the information you put in it.  That is why you have to keep track of everything that you spend and everything that you make.  Only by tracking every little expense can you see where the “fat” is.  Saving/investing must be a line item in your budget.  Make room for it by cutting unnecessary expenses.  Every month, you should aim to put away at least 10% of your income (more, if you can).  If you are contributing to a retirement plan at work, this money would count toward the 10%.

Refinance.  With fixed mortgage rates at unbelievable lows, you can immediately improve your cash flow by refinancing.  The key here is to pocket the difference, not spend it.  This money should be used to fully fund your retirement, or to build up the emergency fund.  If you are branching out into a business, some of these funds can be used in that manner.  This money should strengthen you, and not be used to buy more stuff.

Pay Down Credit Card Debt.  Get healthy and shed as much of this debt as you can.  You should aim to pay off more than just the minimum and look to consolidate the debt to one lower rate card.  Talk to your card company and try to negotiate a better rate.  If you still have high rate cards, be sure to pay them off first.  Of course, stop using credit cards for any new purchases.

Delay.  Again, if you are nervous about job security, or debt is creeping up on you, put off purchasing anything you don’t really need.   Don’t eat out, don’t go on a vacation, don’t buy a new car, don’t indulge in anything that you would consider something you want (a manicure) versus a need (an annual check-up).

Difficult times provide a chance to examine your life and to truly grow and benefit from the experience.  Preparing for survival mode will strengthen you and, more important, give you confidence when you do rise to the occasion.  Suddenly you will see possibilities that otherwise you might have never considered.  Growing pains aren’t easy to bear, but they are necessary for survival.

Filed Under: Budgeting, Building Wealth, Financial Housekeeping, Marriage & Money, Uncategorized

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Dina Isola

Since 2002, Dina Isola has worked closely with investors, hearing their concerns. Drawing on her experiences and challenges, Real$martica was born, which focuses on making personal finance issues relatable to women, children and families and educating investors to make informed decisions. A contributor to A Teachable Moment, she is a client relations specialist at Ritholtz Wealth Management. She also serves on Stony Brook Children’s Hospital Task Force.

*Disclaimers

  • Disclaimers
  • Privacy Policy
  • Terms & Conditions

Recent Articles

  • Mid-Year Pump
  • Break Free
  • Lazy Discipline
  • Mindful of Your Money
  • Stop Apologizing, Start Accepting
  • Reaching Your Financial Resolutions in 3 Easy Steps
  • When I Find Myself in Times of Trouble
  • Time to Think

In the news..

Mortgage Stories
Bankrate.com
Retirement Stories
Bankrate.com
Read current mortgage rates and home loan stories.
Read the latest retirement planning topics and trends.

RSS College Tuition News

  • Students Earn Salary While Going to College in New South Bay Program - NBC San Diego
  • Emergency Loan Uses & Alternatives - Bankrate.com
  • How much does it cost to be in a sorority? - Yahoo Finance

RSS Personal Budget News

  • Debt And Mental Health Statistics - Bankrate.com
  • Digital Personal Data Bill to be introduced in second half of Budget Session: Govt to SC - Economic Times
  • Amid 'unprecedented' prolonged revenue boom, state finds budget ... - NPR Illinois

© Copyright 2016 Real$martica · All Rights Reserved · Powered by WordPress ·