Is Your Cash-flow Stretched Too Tight?
Let’s be real. We’ve all been through seasons when we find ourselves strapped for cash. There just isn’t quite enough to cover everything. It can be incredibly debilitating and scary. Even if you haven’t experienced a dry season yet, it’s important to have a plan of action to work through it.
These seasons of financial scarcity or drought can be good opportunities for self-reflection and evaluation. Hardships help remind us of what we truly value and treasure. When you find yourself strapped for cash, you may notice that you become more intentional and purposeful about your money. Seize the moment to clarify your goals and dreams.
Survive and Thrive
First, it’s important to understand that money has a flow of it’s own. Money (think, money managers) reacts to daily events and conditions, just like the weather or the tide. Income is influenced by the financial strength of a company, as well as consumer spending. Income fluctuates based on the ebbs and flows of the world around you. Expenses vary as well. It reflects the demand and supply costs for each vendor, city or country. Nothing is set in stone.
Second, it’s important to understand your own bias towards money. On the one hand, many folks have a fear of never having enough money. This leads to buying more than they actually need out of fear that they won’t be able to later. In other words, do everything now when you have cash in hand. On the other hand, many folks over-estimate what they can afford. They make assumptions that their income will grow exponentially each year and make buying decisions based on that.
Be realistic – set aside time to create a spreadsheet with every account you have, both financial accounts and expense accounts.
Align your money with your values – identify the purpose and function for each account and expense you have. What does each one have to do with accomplishing your goals and dreams?
Clean your Financial House – begin to eliminate and cut back on those expenses that do not align with your goals. Especially during lean times, focus on protecting the essentials – a safe shelter, healthy nutrition and strong relationships.
Care for your wellbeing – be honest about the things that you really need. Find ways to replace expenses with similar experiences that are free or have a low cost. Remember that you can add things back later when your cashflow improves. Financial droughts don’t last forever.
Invest in yourself first and foremost – unless you are well, strong and self-sufficient, you won’t be able to have the impact you want to have. Focus on learning skills, best practices and building healthy financial habits so you can survive and thrive in all seasons of life.
Schedule a free 15-minute coaching session to learn more about our 1:1 Financial Zen Coaching program. We provide positive, practical guidance to improve financial wellness. Let us know how we can help you build financial flexibility at firstname.lastname@example.org.
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