Christina Sciarretta
Oh, let me count the ways that we can experience financial hardship in 2020! It is no secret that this has been one of the most financially catastrophic years in history. Between Covid, political unrest, a revolution, an unstable stock market, a terrifying appearance of something apparently called “murder hornets”, and literally an entire host of other other issues, it is easy to feel like we don’t have control, especially when it comes to our own finances. That, my friend, is a lie.
Here’s the thing: financial hardships happen. Whether it is due to Cov…the entire year of 2020…, a job loss, a foreclosure or short sale, a divorce, the death of a loved one, an illness, etc, there are practices that you can put in place to ground you, so that you can begin to build the foundation of your financial stability. Let’s explore.
Take a Deep Breath
You’re not the first person to go through this and you won’t be the last. Everything… EVERYTHING… is figure-out-able. You need your mind and heart to be fully engaged in order to financially recover from any situation, so take a deep breath and resolve to be solution-minded. You cannot go back, you can only go forward. We’re looking for solutions, not judgement.
Gain Clarity by Auditing
You will not move forward completely in any financial hardship, unless and until you gain clarity around your current situation. Yes, it will take cold, hard, brutal honesty with yourself and your partner, but I promise you this: the breakdown comes just before the break through. Don’t run from the breakdown. Don’t hide from the breakdown. Allow the breakdown to happen, and create the space for a breakthrough. Where there is clarity, there is power. Sit down at your desk or kitchen table with a cup of hot coffee, your laptop, a pencil and a notebook and get to evaluating the financial situation of your company like a CFO.
- What is your total annual and monthly household income?
- How much cash do you have and in which accounts?
- Do you have any remaining liquid assets?
- What are they and what is the current market value?
- What are your monthly expenses right now?
- How much debt do you have?
- What KIND of debt do you have?
- What are the monthly payments on each credit card?
- What are the interest rates for each debt.
- What are the payoff amounts on each of your debts?
- Set Smart Goals
Now that you have clarity around where you are in your financial situation, it’s time to decide where it is that you want to go. That’s right, it’s goal setting time, CFO! I can already hear you in my mind right now, “Goals?? I can’t set goals! I am just trying to survive!”
Excellent mindset. Let’s, instead of finding a solution, run around like our heads are on fire… That, CFO, is what I like to refer to as the survival mindset, and if you stay in the mindset of consistently surviving for just the present moment, you may continue to survive, but you likely will not pass survive to get to thrive. (By the way, this goes far beyond financials, y’all!) Your mindset can easily distract you and keep you from getting ahead. Financial stability doesn’t just happen for a majority of us humans. It happens intentionally. So create your financial goals, and make ’em S.M.A.R.T! S.M.A.R.T stands for specific, measurable, achievable, relevant and time-bound.
Specific: Create a clear and definable end result. I recommend setting 5-year, 3- year and 1-year goals. The quality of the goal depends largely on your ability to get crystal clear on what it is that you want. “I want to put food on the table” is too vague and general, but, “I will have a 640 score by November 2020” or “I will pay off $10,000 of debt by August 2021” or “I will have 5,000 in savings by April 2021 is specific and points you in a clear direction.
Measurable: How will you measure your progress? Break the big goals down into smaller goals. Those are called “benchmarks”. Making a goal measurable allows you to track your progressand know when you’re winning or losing.
Achievable: A goal isn’t a pipe dream. It must be attainable, otherwise you will lose motivation and feel like you’re failing. By all means, set goals that are out of reach, but if you feel the lag of motivation, make sure that your goal is actually achievable for you in the timeframe, which brings me to the next letter in S.M.A.R.T…
Relevant: Is this goal relevant to the success of your financial future? “Buying a new car by 2021” is completely irrelevant when you are working on cleaning up the mess you made. Taking on additional debt is opposite of the right decision. Make it relevant. Improve your credit, put money in savings for emergencies only, pay off debt, buy a home, invest your money, start a retirement account. Make your goals relevant to your financial stability in future.
Time-Bound: A goal without a deadline is just a pipe dream. There is no power behind it. BY WHEN will you hit your goal? That kind of clarity will power your goal and help you to know when to course correct.
Take Action
Once you have put your mindset in check, audited your finances, and set smart goals to set the ship in the right direction, it is time to take action. This is where you take your seat at the board table and become the CFO of your life. A great CFO doesn’t just evaluate the situation and come up with a strategic plan. They execute the plan with fervency. Get expert help if you need help or research to learn about personal finance and budgets, and then take massive action.
Becoming the CFO of your life takes work, yet it is work that is worth its weight in gold. Financial stability takes intention, clarity, and action. It is within reach for you, if you are willing to take control and step into becoming the CFO of your own life. Remember, everything is figure-out-able. Until next time, Shore Locals, I am sending you peace, love, and good vibes from my home to your’s!
Christina Sciarretta is the visionary and driver of excellence at Rockstar Real Estate & Media Group at Keller Williams Jersey Shore. Born and raised both Atlantic and Cape May Counties, she brings her love for the real estate industry, personal growth, and the local Jersey Shore community to Rockstar in disruptive & impactful ways, including her local Mom’s Group, Rockstar Moms and Atlantic County and her column right here in Shore Local.
