6 Steps to Making Good Financial Decisions in Tough Times

I heard a staggering statistic the other day aboutyou have any nagging doubts? Do you feel "fear"
the number of homes that are going intoabout making the decision? Ask yourself, "Have I
foreclosure each day. In addition, people are losinggathered enough information to feel good about
their jobs as many businesses experience athis decision?" Every person I've ever met who
decline in revenues and are struggling to keepmade a financial decision that resulted in the loss
their doors open. It's certain that most of us areof money, time and energy admitted that they
feeling the effects of this tougher economy.ignored their small voice or that feeling in the pit
What we don't yet know is how deep and howof their stomach.
long we will experience these economic toughStep 5: Make decisions based on where you are
times.now
Financial stress can either paralyze us into takingThe fifth step to making good decisions in a tough
no action when we should or cause us to makemarket is to make all of your spending decisions
poor, impulsive decisions. When we're in abased on where you are now and be cautious
flourishing economy, it's so much easier toabout the future. Making decisions based on
recover from any bad decisions we might make.where you are now means don't spend money
However, when things are tough there's not asuntil you've received it no matter how certain it
much room for error and a misstep will take aappears - whether it's an inheritance or a "for
longer time to recover from financially. Over mysure" commission check. Avoid using your credit
years of experience in working with clients, I'vecards if you are unable to pay them off each
come up with these six steps that will help youmonth. Also, don't spend money unnecessarily
make better financial decisions in tough times.because you're hoping the economy is going to
Step 1: Know what's truly importantget better soon. This is not the time for impulsive
The first step is to take the time to know what'spurchases. Being cautious about the future means
most important to you. This is more difficult whenthat even though your job may seem secure or
you're feeling financial stress. Ask yourself theyour business is doing well, stay alert to the fact
question, "What makes my life richer?" Forthat we are in a tougher, uncertain economy and
example, spending time with your children or yourmake your decisions with this in mind.
spouse, and staying healthy might be mostStep 6: Good Self Care will keep you creative
important to you. Once you have clarity on what'sThe sixth and final step to making good decisions
most important, it's easier to make financialin a tough economy is good self care. Good self
decisions that keep you in alignment with your lifecare will keep you feeling good emotionally and will
values.enhance your creativity. You may wonder why it
Step 2: Be proactive about your spending choicesis important to enhance your creativity. You may
The second step to making good decisions in aeven feel that since things are "tight" you don't
tough economy is to be proactive about how youhave time to play creatively. When we're in a
spend your money. Look for ways to cutcreative state we are able to see things more
household expenses and before you buy, askclearly. It also allows us to see other perspectives,
yourself "Is this purchase really necessary?" Insuch as finding creative ways to solve problems
addition, check to see if any loans or credit cardsor challenges.
can be refinanced or consolidated to lower yourIt's easy to slide down the rabbit hole of doom
monthly payments and interest rates.and gloom when things get financially tough, and
If you are self employed and experiencing ait's also easy to let go of everyday self care
business slow-down, look for ways to reduceactivities such as eating right and exercising. It's
your overhead. Many business owners who aremore important than ever to take care of our
renting space have been able to re-negotiate aphysical well-being and to take the time for
lesser rent. You'll also want to explore creativerelaxing activities. Develop a daily practice of
ways of finding and keep new customers whilesome type of soul-soothing activity. It might be
keeping your current ones happy with yourpainting, playing a musical instrument, playing golf
products or services.or other some other type of sport. Explore what
Step 3: Seek input from professionalsyou can do on a daily basis that will keep you
The third step to making good decisions in a tightvibrant emotionally and in your most creative
economy is to research the options and thestate.
consequences of major financial decisions. TheDon't let these tough times send you into a spiral
more research you do the better outcome you'llof unproductive and unnecessary worry. Instead,
have. Seek input from people who have morethese six steps that I've outlined will help you stay
information and experience than you. Also, checkcreative to all possibilities and will help you make
into the possible tax or legal consequences oflong-term, smart, proactive financial decisions.
your decision. This is particularly important ifRemember, this economic slowdown is a part of
you're considering a decision on the disposition ofthe ebb and flow of life. Keep in mind that this will
property such as a short sale, deed in lieu ofeventually pass into a prosperous time once
foreclosure, or going into foreclosure.more. If you are one of the millions who are
Step 4: Check In With Yourselfexperiencing financial stress, this is a good time to
The fourth step to making good decisions in achallenge yourself to stay positive and find
tough market is to take the time to have a quietcreative solutions to challenges as they arise. Stay
moment with yourself once you've gathered allcalm in the knowing that everything will eventually
the information. How does the decision feel? Docome around.