Identifying personal financial crisis

Hey FitnanceIQ Family, so I hope we were able to skim the Introduction on the reason why I’m doing this. To refresh your mind a bit, in the month of April it is Financial Literacy Month! This is a great time to educate family and friends.

But first things first, we have to realize that not everyone wants to change their habits until THEY are ready to change it. I actually learned that the hard way, the other day I was sent an email about a focus group for $250. I was extremely excited and ready to sign up until I noticed the age limit (45-65) and thought of my parents and others. Can you believe I asked my mom the day after if she had signed up and she hesitated on signing up and making an easy 250!!!! Oh, I gave her a lecture yes! So what does this have to do with this month? Well, I’m going to provide information and tips but I can’t get upset and give you lectures on why you should listen I just have to hope you will want to change for the greater.

 So let’s begin identifying personal financial crisis, which does not mean the economy its self but the factors that catch you in this financial rat race. The common ones are:

1. Job loss, hours cut, low-paying jobs
2. Sudden illness or emergency
3. Bankruptcy

Most of these situations are out of our control. Some can be prevented (rare cases), but some just turn our world upside down.

If you ever experienced any of these situations you may have also experienced:

1. Living paycheck to paycheck
2. Emotional/Mental stress
3. Loss of Financial Control
4. Loss of confidence
5. Depression

So how do you overcome these??

I’ll let you in a little on my life; I was working somewhere where it was extreme low pay (based on my Degree and experience). I dreaded going to work and living paycheck to paycheck, the only thing that was keeping me there was the benefits and the friendship I formed. I reached that stage when it was mentally and emotionally draining and I needed out! So I pushed myself to save at least 10% to 15% each paycheck, I would hustle with other side gigs and at times I would cut my expenses to the bare minimum. Living at home still, has its advantages so I manage to leave the place with my sanity. However, I realize not everyone has the option to go down the path I decided to take.

But let me ask you this? Do you have what it takes to get yourself into a better situation?

To survive a personal financial crisis it takes PLANNING and BUDGETING! If you don’t have a plan you don’t have the guidance of your next step. I’m not telling you to automatically leave your job but here are some things to become financial stable.

1. Try to make a plan/budget. For the last 5 years, I have been budgeting to see where I go wrong and where I go right. This year I’ve included a projected budget to work towards my goals. It helps me stay focus and see when I’ll be out of debt.
2. SAVE, SAVE, SAVE! I can’t express this any further, start paying you first. Whether it’s 10% or more and put it into a Savings account. Ideally Tax-free Savings account, it adds up when you’re consistent. Want to learn how to save up to $1,200 this year? click here
3. Cut down on expenses. Some of my nicknames are Barata, El cheapo or being called frugal. I find ways to cut cost ALL THE TIME, sometimes it doesn’t work out and sometimes it works out perfectly. Not everything you WANT is something you NEED, which brings me to this…
4. Live within your means. Stop trying to impress people that don’t help you grow! Stop trying to outshine or “stunt” others when you are drowning in debt. Leave that credit card at home when going out or come off that clothing website to purchase that Michael Kors Bag.
5. Find ways to increase your income. Everyone has the same 24 hours, 7 days a week. Ways to do things that will increase your income whether it’s doing a part-time, a side gig or even doing an online course to get a certificate so you can increase your pay at work or get the dream job you always wanted. Perhaps you want to take the entrepreneur avenue which in time increases your income.

Let’s not forget that some situations such as Medical illness or emergency are quite difficult to be prepared for. Those are situations that you need to seek professional help or support from family and friends to get things rolling. But I always advise having an emergency fund of at least $1000…it’s easier than you think to get that within a year.

So the main thing about dealing with Personal Financial Crisis is to SAVE! This will help us feel more at ease and financially stable.

I hope these were things you knew but just need reassurance and able to figure out to get ahead of Financial Crisis. If you have any questions please feel free to ask me. Remember the goal is to become LEADERS and be financially fit.

Much love to you family.