Managing your money, during any economic season

When I don my hat as a Financial Advisor, many folks want me to give them the next hot stock tip, or provide them with some sage advice on where I think markets are headed. As I mentioned before, folks want someone to tell them everything’s going to be OK; that their desired retirement date remains intact, that they’re not going to run out of money in retirement.

The current recession serves as a grim reminder of the economic uncertainties facing our Nation, and the rest of the world. But, recessions do happen… and they’re supposed to! The economy is cyclical, and is continually expanding and contracting in an effort to attain homeostasis. Intellectually we understand this, but our humanness, finds it difficult to deal with, especially when we’re in the throws of a downward cycle. During recessions, fear overrides intellect, and panic sets in. As job losses begin to hit closer to home, our fears are heightened. The events around us; deepening concerns about the economy, job loss, etc. begin wearing on our psyche. To most of us, it appears as if everyone is in the same boat.

Notice, that I used the word “appears”. Believe it or not, some people aren’t in panic mode. They haven’t bought into the mass medias almost tabloid representation of the crisis at hand. Sure, some of these folks might chime in during an office discussion about the condition of their 401k, but they refuse to get caught up in the panic-driven fray. So, what’s different about these them? They eat, drink, and sleep just the same as you and I. They live in the same neighborhoods, work the same types of jobs, and frequent many of same places.

Maybe the biggest difference between these individuals and the rest of us, is that they aren’t swayed by marketing and media. They choose instead to determine for themselves the nature of their priorities. Perhaps it’s because these folks have a plan for their lives. They know what they want, and take the necessary steps to make it happen.

Managing your money means includes setting goals, determining the paths to achieving those goals, and initiating a course of action. It also requires making adjustments as needed. Setting goals is requires establishing priorities. Make a list of the things that are most important to you, really important! Now, number these things in order of importance. Next, review your actions to date. Determine which actions are aligned with your stated priorities (goals), and which ones are counterproductive.

Now comes the tough part! Stop doing less of the things that are least productive, the things that are eroding your ability to get what it is that you really want! And, start doing more of the things that are in-line with what you want. This all sounds fairly simple on the surface, but the reality is that it can be very difficult. The reason, is that we are creatures of habit. We’ve been conditioned to think and act in certain ways. Besides, it’s easier to keep doing things the same old way, than it is to do things differently. Or, is it?

One could say that there is a pretty good argument for failing to act. And that is, that change can be scary. But, failing to act can be even more frightening, and potentially disastrous to ones well being, or quality of life. Look around you. What you see is the sum total of all your actions up to this point. Do you like what you see? For many people, the answer is resoundingly, No! Unfortunately, many don’t even know where to begin, even after they’ve decided that change is necessary. So, they continue on with their daily routine, hoping that things will get better. Unfortunately, they usually don’t. But, really, why would they?

You’ve heard of the adage about insanity, which is doing the same thing over and over and expecting different results. If you want to win with money, then change is not an option. So, go ahead. Take the plunge, yes it can be scary, but the alternative is a whole lot scarier.

For more information on managing your money, check out my website; Http://www.longrunfinancial.com