WEBVTT 00:00:14.859 --> 00:00:19.019 Welcome back to another Sci -Fi episode, where 00:00:19.019 --> 00:00:21.719 today we'll continue to examine how we think, 00:00:21.800 --> 00:00:25.820 feel, and behave with money, especially during 00:00:25.820 --> 00:00:30.320 times of financial uncertainty. Since January, 00:00:30.640 --> 00:00:33.840 federal civilians have gotten somewhat of a shake 00:00:33.840 --> 00:00:37.490 -up and somewhat of a wake -up call. So I designed 00:00:37.490 --> 00:00:41.149 this class as a way to empower individuals, whether 00:00:41.149 --> 00:00:44.469 they were thinking of accepting the delayed resignation 00:00:44.469 --> 00:00:48.210 program or they were thinking of accepting the 00:00:48.210 --> 00:00:51.229 early retirement that came out a little later. 00:00:51.289 --> 00:00:54.729 And overall, just how to prepare themselves financially 00:00:54.729 --> 00:00:59.250 should another opportunity arise or. Another 00:00:59.250 --> 00:01:03.590 anxiety -provoking strategy came out so that 00:01:03.590 --> 00:01:06.409 they could feel confident in their money -making 00:01:06.409 --> 00:01:11.209 decisions. So what I wanted to do is I wanted 00:01:11.209 --> 00:01:13.829 to make sure that the civilian workforce felt 00:01:13.829 --> 00:01:16.189 empowered. Instead of focusing on things they 00:01:16.189 --> 00:01:19.790 can't control, focusing on the things that they 00:01:19.790 --> 00:01:24.170 can control and even reframing some of the things 00:01:24.170 --> 00:01:27.170 that they thought were negative. And really pointing 00:01:27.170 --> 00:01:29.349 out that some of these things that you thought 00:01:29.349 --> 00:01:34.569 were triggers or anxiety provokers were actually 00:01:34.569 --> 00:01:38.750 things that over time will have promoted growth 00:01:38.750 --> 00:01:42.709 for each individual. So for example, now knowing 00:01:42.709 --> 00:01:46.170 that not every federal civilian, just because 00:01:46.170 --> 00:01:50.530 you've reached your tenure or you have achieved 00:01:50.530 --> 00:01:53.390 your probationary status or have gone beyond 00:01:53.390 --> 00:01:55.849 your probationary status doesn't mean that you 00:01:55.849 --> 00:01:58.950 are secure for life in that position. So just 00:01:58.950 --> 00:02:01.530 other things as well beyond finances, keeping 00:02:01.530 --> 00:02:04.409 your resume updated and things of that nature. 00:02:04.549 --> 00:02:08.050 What I did want to do is I wanted to bring home 00:02:08.050 --> 00:02:12.110 or drive home somewhat of a metaphor as we are 00:02:12.110 --> 00:02:14.550 navigating through this financial uncertainty 00:02:14.550 --> 00:02:18.349 of thinking of it as being on a ship. And navigating 00:02:18.349 --> 00:02:21.949 treacherous water. Sometimes that water is beautiful, 00:02:22.229 --> 00:02:26.449 it's peaceful, it's calm, and folks flock to 00:02:26.449 --> 00:02:30.949 the beach just to see that serene scene. Yet 00:02:30.949 --> 00:02:35.189 other times the water is choppy and it's dangerous. 00:02:35.509 --> 00:02:38.050 So we want to make sure that we have the tools 00:02:38.050 --> 00:02:41.909 necessary. So I started right off the bat with 00:02:41.909 --> 00:02:45.270 a question. Just to get you prepared, remember 00:02:45.270 --> 00:02:48.069 the game you'd play as a kid or even with your 00:02:48.069 --> 00:02:51.069 kids? You would ask, if you knew you would end 00:02:51.069 --> 00:02:54.090 up on a deserted island, what three things would 00:02:54.090 --> 00:02:57.789 you bring with you? And if you notice, this game 00:02:57.789 --> 00:02:59.990 really gets to the heart of what you or your 00:02:59.990 --> 00:03:05.289 kids need most. Is it safety, comfort, or pure 00:03:05.289 --> 00:03:09.150 survival? So for many of us, it feels like we 00:03:09.150 --> 00:03:12.110 might be on that deserted island right now. and 00:03:12.110 --> 00:03:14.349 are doing what we can to survive. But I wanted 00:03:14.349 --> 00:03:17.550 to share with you some of the input from the 00:03:17.550 --> 00:03:21.270 folks that played along. Some said the three 00:03:21.270 --> 00:03:24.710 things I would bring, a knife, flint, canteen. 00:03:24.770 --> 00:03:27.810 That makes sense, right? Another said matches, 00:03:28.129 --> 00:03:33.069 axe, knife, book. And now we're moving into something 00:03:33.069 --> 00:03:37.110 that would keep them comforted and even keep... 00:03:37.319 --> 00:03:40.400 them somewhat occupied and distracted. Another 00:03:40.400 --> 00:03:44.039 one put a journal and a pen and a knife. The 00:03:44.039 --> 00:03:46.800 smarter individual, the more strategic individual, 00:03:46.860 --> 00:03:49.340 put satellite phone, right? And that's not to 00:03:49.340 --> 00:03:51.379 say that the others weren't smart. Again, it 00:03:51.379 --> 00:03:55.740 just shows the need for comfort or survival, 00:03:55.879 --> 00:03:59.560 whatever your responses are. And someone even 00:03:59.560 --> 00:04:02.699 said a boat, fuel, and a machete. So again, you 00:04:02.699 --> 00:04:04.740 can see the different types of things that folks 00:04:04.740 --> 00:04:09.270 were And even some put Bible on there as well. 00:04:09.409 --> 00:04:12.629 So again, shows you the difference in what people 00:04:12.629 --> 00:04:15.949 will find as comforting on this deserted island 00:04:15.949 --> 00:04:19.290 and help them survive while they're there. So 00:04:19.290 --> 00:04:23.389 then I changed the question just a little bit 00:04:23.389 --> 00:04:27.930 and kind of posed it this way that, you know, 00:04:27.930 --> 00:04:33.290 sometimes it can feel as if we don't, like we're 00:04:33.290 --> 00:04:36.449 already on that deserted island. What if we knew 00:04:36.449 --> 00:04:39.730 we were going to lose one paycheck or maybe 25 00:04:39.730 --> 00:04:42.870 % of our paycheck because we had to find a quick 00:04:42.870 --> 00:04:46.370 job, but it was a less paying job. And so I asked 00:04:46.370 --> 00:04:49.490 the question, what would you, well, let me actually 00:04:49.490 --> 00:04:51.670 read you the question. Financial uncertainty 00:04:51.670 --> 00:04:54.209 can feel like you're on a deserted island or 00:04:54.209 --> 00:04:57.250 up a creek without a paddle. If you knew financial 00:04:57.250 --> 00:05:00.620 hardship was on its way. What three things would 00:05:00.620 --> 00:05:03.660 you do differently? So just like in that initial 00:05:03.660 --> 00:05:05.839 question, what three things would you bring with 00:05:05.839 --> 00:05:07.319 you if you knew that you were going to be on 00:05:07.319 --> 00:05:09.879 a deserted island? This changes it up a little 00:05:09.879 --> 00:05:12.759 bit. If you knew financial hardship was on its 00:05:12.759 --> 00:05:15.560 way, what three things would you do differently? 00:05:15.959 --> 00:05:18.740 And so here's some of the responses. Stop eating 00:05:18.740 --> 00:05:22.939 out as much. Quit drinking. Increase my TSP contributions. 00:05:23.540 --> 00:05:27.230 And notice, first response. That is something 00:05:27.230 --> 00:05:30.430 that is within that person's control. Another 00:05:30.430 --> 00:05:34.689 person said save, invest, and consolidate. So 00:05:34.689 --> 00:05:37.850 they're thinking more of debt as well, as well 00:05:37.850 --> 00:05:40.470 as saving for the future. And then you have also 00:05:40.470 --> 00:05:43.970 cutting spending, cleaning up my resume, and 00:05:43.970 --> 00:05:47.370 even downsizing. So again, it just goes to show 00:05:47.370 --> 00:05:50.470 what might be happening in each of these individual 00:05:50.470 --> 00:05:53.529 lives as they respond the way that they're responding. 00:05:54.110 --> 00:05:57.649 Another one said, cut off non -essentials and 00:05:57.649 --> 00:06:02.069 consolidate debt. Again, this person's in a completely 00:06:02.069 --> 00:06:04.629 different place than the person who wants to 00:06:04.629 --> 00:06:08.550 increase their TSP and stop eating out as much. 00:06:08.910 --> 00:06:11.709 And then you have others that are saying, stop 00:06:11.709 --> 00:06:16.069 subscriptions, increase savings, and buy only 00:06:16.069 --> 00:06:20.110 the essentials at a grocery store. So if you 00:06:20.110 --> 00:06:23.120 can hear this, and I didn't read them all. There 00:06:23.120 --> 00:06:25.759 are so many things that could be done that is 00:06:25.759 --> 00:06:29.959 within a person's level of control on an individual 00:06:29.959 --> 00:06:33.459 level that they can start doing now to better 00:06:33.459 --> 00:06:37.379 prepare for financial uncertainty. So we talked 00:06:37.379 --> 00:06:41.160 first about navigational tools. So again, we're 00:06:41.160 --> 00:06:44.879 on that ship and we're using the metaphor of 00:06:44.879 --> 00:06:48.000 navigating through financial uncertainty or navigating 00:06:48.000 --> 00:06:51.279 through different types of waters. So the first 00:06:51.279 --> 00:06:54.720 thing we need is a financial map or a destination. 00:06:55.000 --> 00:06:59.620 Where are we headed financially? What use is 00:06:59.620 --> 00:07:03.699 your income without that direction? And knowing 00:07:03.699 --> 00:07:07.759 that direction is driven by destination, where 00:07:07.759 --> 00:07:11.379 do I want to be financially in six months, five 00:07:11.379 --> 00:07:14.379 years, 10 to 15 years, et cetera? And that goes 00:07:14.379 --> 00:07:17.660 back to just asking that one simple question 00:07:17.660 --> 00:07:22.500 and finding where people's comforts lie. What 00:07:22.500 --> 00:07:25.199 three things would you do differently if you 00:07:25.199 --> 00:07:29.180 knew financial hardship was on its way? They 00:07:29.180 --> 00:07:33.379 already knew what they needed to do. I would 00:07:33.379 --> 00:07:36.560 say that many of the folks that took this class, 00:07:36.680 --> 00:07:40.319 they probably didn't even consider that externally 00:07:40.319 --> 00:07:43.699 outside of that class. And so now they have a 00:07:43.699 --> 00:07:46.240 framework to work from. Now they have a financial 00:07:46.240 --> 00:07:49.180 map. So where do you want to be when you retire? 00:07:49.180 --> 00:07:52.699 And not just physically, but financially, emotionally, 00:07:53.300 --> 00:07:57.600 relationally. What would let you know that you 00:07:57.600 --> 00:08:01.269 made it? And so this again is where this destination 00:08:01.269 --> 00:08:04.649 or financial map will be useful for you in navigating 00:08:04.649 --> 00:08:08.910 financial uncertainty. So if you knew your destination, 00:08:09.250 --> 00:08:13.730 you could plan and at least feel some sense of 00:08:13.730 --> 00:08:16.930 control. And again, that goes back to the questions 00:08:16.930 --> 00:08:20.350 that we were asking before. So one of the things 00:08:20.350 --> 00:08:24.389 that we talk about too is the different tools 00:08:24.389 --> 00:08:26.769 that you can use as part of this navigation. 00:08:27.550 --> 00:08:30.670 looking ahead to remain on course, like having 00:08:30.670 --> 00:08:33.250 that ability to see what might be in front of 00:08:33.250 --> 00:08:35.309 you. I know that we can't predict the future, 00:08:35.389 --> 00:08:38.370 but we can get out our financial binoculars and 00:08:38.370 --> 00:08:41.070 at least see what might be in the distance for 00:08:41.070 --> 00:08:43.789 us that we need to plan for or look out for. 00:08:44.029 --> 00:08:46.990 And one way of doing that, the best financial 00:08:46.990 --> 00:08:50.269 tool that's available to us in that regard is 00:08:50.269 --> 00:08:54.169 a cash flow analysis. And from that cash flow 00:08:54.169 --> 00:08:57.750 where you are calculating how much income you're 00:08:57.750 --> 00:09:00.409 bringing in and how many expenses you have going 00:09:00.409 --> 00:09:04.169 out, creating a spend plan from that cash flow 00:09:04.169 --> 00:09:07.830 analysis. Now assigning every dollar a job and 00:09:07.830 --> 00:09:11.669 making sure that the spend plan is taking you 00:09:11.669 --> 00:09:15.029 where you actually want to go rather than just... 00:09:15.450 --> 00:09:18.230 teetering along, drifting on that driftwood, 00:09:18.289 --> 00:09:20.169 not even knowing when you're going to get to 00:09:20.169 --> 00:09:23.610 your destination. Another tool is knowing your 00:09:23.610 --> 00:09:27.629 net worth. That measures your wealth. When you 00:09:27.629 --> 00:09:30.490 know what your wealth looks like, when you have 00:09:30.490 --> 00:09:33.710 that calculation, you know where you are currently. 00:09:34.440 --> 00:09:36.940 And then from there, you work to know where you 00:09:36.940 --> 00:09:39.460 want to be. So at least it gives you reference. 00:09:39.860 --> 00:09:42.899 And then another navigational tool is PowerPay. 00:09:42.899 --> 00:09:45.980 And that's used for debt management. It's a free 00:09:45.980 --> 00:09:49.179 resource where you can plug in the numbers and 00:09:49.179 --> 00:09:53.600 make yourself a repayment plan. No fees, no contracts 00:09:53.600 --> 00:09:57.210 involved whatsoever. So sure, when it comes to 00:09:57.210 --> 00:10:00.429 navigating financial uncertainty, it's good to 00:10:00.429 --> 00:10:03.649 know what has happened that will not be helpful. 00:10:03.830 --> 00:10:08.470 So maybe after this initial shakeup in the federal 00:10:08.470 --> 00:10:11.409 workforce, you look back and say, wow, I was 00:10:11.409 --> 00:10:14.149 not prepared if I were let go because I did not 00:10:14.149 --> 00:10:17.250 meet probationary status or because I wasn't 00:10:17.250 --> 00:10:19.769 performing as well as I know I should have been. 00:10:19.929 --> 00:10:23.620 You can look back and say, OK, maybe. Maybe not 00:10:23.620 --> 00:10:25.779 knowing where that was going to take me, okay, 00:10:25.919 --> 00:10:30.120 but at the same time, now I know what I can do 00:10:30.120 --> 00:10:32.759 differently. So it doesn't help to beat yourself 00:10:32.759 --> 00:10:37.340 up so badly that you can't move forward. If anything, 00:10:37.519 --> 00:10:39.639 we want to get you to a place where you feel 00:10:39.639 --> 00:10:42.990 worthy enough to make those next steps. So you 00:10:42.990 --> 00:10:45.269 can inflation -proof your spend plan and your 00:10:45.269 --> 00:10:48.950 portfolio by, one, living below your means, and 00:10:48.950 --> 00:10:52.090 two, saving money. I mean, those are just different 00:10:52.090 --> 00:10:56.029 ways to navigate those treacherous waters because 00:10:56.029 --> 00:10:59.169 I guarantee you the folks who had savings, the 00:10:59.169 --> 00:11:02.970 folks who weren't involved in a lot of debt, 00:11:03.169 --> 00:11:06.370 and folks who had put together a financial plan 00:11:06.370 --> 00:11:10.559 probably weren't as shaken up. I'm sure there 00:11:10.559 --> 00:11:12.340 was some disappointment. Oh my goodness, if I 00:11:12.340 --> 00:11:14.980 lose my job, this was in my financial plan. It 00:11:14.980 --> 00:11:17.519 wouldn't be desirable, but at least I have the 00:11:17.519 --> 00:11:20.460 ability to survive until I get a new job. So 00:11:20.460 --> 00:11:22.740 I wouldn't want to speak for anyone just because 00:11:22.740 --> 00:11:25.720 they had savings or they had a financial plan. 00:11:25.879 --> 00:11:28.320 But here are some dangers we need to look for, 00:11:28.419 --> 00:11:31.220 especially when those waters start getting a 00:11:31.220 --> 00:11:34.100 little more choppy. When we're not tracking our 00:11:34.100 --> 00:11:37.860 spending, we are not. seeing where our money 00:11:37.860 --> 00:11:41.000 is going. And that is definitely a sign of turbulent 00:11:41.000 --> 00:11:45.519 waters because we cannot at least visualize where 00:11:45.519 --> 00:11:48.580 we're going to land if we're not tracking after 00:11:48.580 --> 00:11:51.500 we've created that beautiful spend plan. Living 00:11:51.500 --> 00:11:54.200 above our means, we just talked about that. Or 00:11:54.200 --> 00:11:57.580 it's not just living above your means, it's living 00:11:57.580 --> 00:12:03.230 at two incomes. So it used to be, and this ages 00:12:03.230 --> 00:12:06.029 me, I know, but when I grew up, I always got 00:12:06.029 --> 00:12:08.250 the advice, hey, when you get married and you 00:12:08.250 --> 00:12:11.669 have a dual income, try to live off one income. 00:12:11.970 --> 00:12:14.590 Because you never know when one of you might 00:12:14.590 --> 00:12:18.549 lose your job or might not want to work because 00:12:18.549 --> 00:12:22.409 maybe a child comes into the family and you're 00:12:22.409 --> 00:12:25.049 wanting to adjust and make smarter financial 00:12:25.049 --> 00:12:29.210 decisions while you're taking some time off from 00:12:29.210 --> 00:12:32.470 work. Or you just refuse to pay child care for 00:12:32.470 --> 00:12:35.309 whatever reason. It is rather expensive these 00:12:35.309 --> 00:12:38.269 days. So there could be many reasons why living 00:12:38.269 --> 00:12:44.289 at two incomes may not be the best idea. And 00:12:44.289 --> 00:12:46.990 so that could create what we would call a tsunami 00:12:46.990 --> 00:12:51.870 or at least create favorable conditions for a 00:12:51.870 --> 00:12:55.289 tsunami where one emergency completely wipes 00:12:55.289 --> 00:12:59.850 out. both incomes. So again, we want to learn 00:12:59.850 --> 00:13:04.950 to live at one income or at least live below 00:13:04.950 --> 00:13:08.190 our means. This is not Olivia saying, oh, we 00:13:08.190 --> 00:13:10.509 got to now learn how to live just at one income. 00:13:10.690 --> 00:13:13.429 No, that's just some old advice that absolutely 00:13:13.429 --> 00:13:16.889 can be tailored to your individual situation 00:13:16.889 --> 00:13:21.090 and your individual needs. But giving above your 00:13:21.090 --> 00:13:24.860 means is another danger. It's one thing to live 00:13:24.860 --> 00:13:27.879 above your means, but another to give above your 00:13:27.879 --> 00:13:30.279 means, where it just creates rocky shores for 00:13:30.279 --> 00:13:32.639 those relationships, all relationships involved. 00:13:33.159 --> 00:13:37.539 No tax planning is another danger that creates 00:13:37.539 --> 00:13:41.679 groundswell. Then you're eaten up by this never 00:13:41.679 --> 00:13:45.399 -ending rising water of taxes. And we want to 00:13:45.399 --> 00:13:49.100 reduce your tax liability, not increase your 00:13:49.100 --> 00:13:51.580 tax liability. And then another danger is not 00:13:51.580 --> 00:13:54.320 estate planning. where you have that rip current 00:13:54.320 --> 00:13:58.860 that comes in, and that rip current pulls you 00:13:58.860 --> 00:14:02.379 both under. If one of you passes, then all of 00:14:02.379 --> 00:14:05.399 a sudden, if there's no income that is left over, 00:14:05.460 --> 00:14:08.879 you don't know how to access that income or those 00:14:08.879 --> 00:14:12.419 benefits, then you're both under. I have a quote 00:14:12.419 --> 00:14:14.940 here that I really like by Florence Nightingale. 00:14:15.139 --> 00:14:19.080 Were there none who were discontented with what 00:14:19.080 --> 00:14:22.019 they have? the world would never reach anything 00:14:22.019 --> 00:14:25.860 better. Let me say that again. Were there none 00:14:25.860 --> 00:14:29.080 who were discontented with what they have, the 00:14:29.080 --> 00:14:32.620 world would never reach anything better. So I'm 00:14:32.620 --> 00:14:34.700 talking about these dangers. I'm talking about 00:14:34.700 --> 00:14:37.820 this uncertainty, not to scare you further, but 00:14:37.820 --> 00:14:39.899 just to help you understand that there's probably 00:14:39.899 --> 00:14:44.080 some financial discontentment in your life. And 00:14:44.080 --> 00:14:47.279 it's okay to have that level of discontentment 00:14:47.279 --> 00:14:51.039 so that you can actually create better life for 00:14:51.039 --> 00:14:53.700 yourself and it would provide some level of direction 00:14:53.700 --> 00:14:57.360 of what you need to do next so then I had another 00:14:57.360 --> 00:15:01.500 poll within this class I asked hey if you knew 00:15:01.500 --> 00:15:05.899 that you could transform your life by doing one 00:15:05.899 --> 00:15:09.700 thing for five minutes a day would you do it 00:15:09.700 --> 00:15:13.889 now All the respondents said yes. So I had 100 00:15:13.889 --> 00:15:18.029 % of the folks say yes. And I felt a little bad 00:15:18.029 --> 00:15:19.950 after because I kind of got onto them a little 00:15:19.950 --> 00:15:21.909 bit. I said, this is what you call the halo effect, 00:15:21.990 --> 00:15:25.830 where you want your instructor to view you favorably 00:15:25.830 --> 00:15:28.789 because of how you answered. Because we know 00:15:28.789 --> 00:15:33.490 that that's not true. We know doctors would laugh 00:15:33.490 --> 00:15:35.990 at that. Physical therapists would laugh at that. 00:15:36.090 --> 00:15:39.190 Financial therapists, financial counselors, you 00:15:39.190 --> 00:15:43.370 name it. A lot of folks are not putting in the 00:15:43.370 --> 00:15:47.110 five minutes a day for life transformational 00:15:47.110 --> 00:15:51.190 work. We would like to think that we would put 00:15:51.190 --> 00:15:53.730 in the time every day to do something different 00:15:53.730 --> 00:15:56.470 that would reduce our financial uncertainty. 00:15:57.250 --> 00:16:01.230 But truly, when it comes to actually sitting 00:16:01.230 --> 00:16:05.070 down and doing those things, a lot of folks aren't 00:16:05.070 --> 00:16:08.210 doing them. Five minutes a day times 30 days 00:16:08.210 --> 00:16:11.090 is two and a half hours. Are people really spending 00:16:11.090 --> 00:16:15.029 two and a half hours a month on their finances? 00:16:15.809 --> 00:16:21.549 No. A lot of folks may not really be putting 00:16:21.549 --> 00:16:25.629 the effort in according to what they desire. 00:16:26.240 --> 00:16:29.200 I gave the example of physical therapy. There's 00:16:29.200 --> 00:16:32.480 one exercise that I have done consistently since 00:16:32.480 --> 00:16:34.519 I have heard from my physical therapist. The 00:16:34.519 --> 00:16:39.779 number one stretch to reduce back pain, especially 00:16:39.779 --> 00:16:44.159 lower back pain, is a hamstring stretch. And 00:16:44.159 --> 00:16:46.220 I remember the physical therapist saying, all 00:16:46.220 --> 00:16:51.000 you have to do, do 60 seconds a day and you will 00:16:51.000 --> 00:16:55.279 see a big difference. I took her up on that. 00:16:55.559 --> 00:16:59.500 And I started doing 60 seconds a day. And I had, 00:16:59.500 --> 00:17:02.340 it was a he and a her. I had several physical 00:17:02.340 --> 00:17:05.839 therapists and physical therapy assistants voicing 00:17:05.839 --> 00:17:08.119 the same thing over and over again. So I took 00:17:08.119 --> 00:17:13.640 them all up on it. And every day, I do 60 seconds 00:17:13.640 --> 00:17:18.180 of hamstring stretches to reduce lower back pain. 00:17:18.240 --> 00:17:23.579 And I will tell you, it is effective. So here's 00:17:23.579 --> 00:17:26.440 the question. If you're not willing to do five 00:17:26.440 --> 00:17:28.740 minutes a day because thinking, wow, five minutes 00:17:28.740 --> 00:17:31.599 a day times 30 days, two and a half hours, geez, 00:17:31.680 --> 00:17:33.680 I probably really wouldn't spend that much time 00:17:33.680 --> 00:17:37.759 on my finances. Would you be willing to do the 00:17:37.759 --> 00:17:41.740 one thing in your financial portfolio for 60 00:17:41.740 --> 00:17:45.740 seconds a day that will transform your financial 00:17:45.740 --> 00:17:51.779 life? I hope the answer is yes. Because 60 seconds 00:17:51.779 --> 00:17:58.420 a day times 30 days, is only 30 minutes. And 00:17:58.420 --> 00:18:01.960 that's all I'm asking from my clients is, hey, 00:18:02.019 --> 00:18:06.160 at the end of every month, create your budget, 00:18:06.319 --> 00:18:10.140 go back and look at how you spent. After you've 00:18:10.140 --> 00:18:12.660 tracked your spending, how well did you do? Where 00:18:12.660 --> 00:18:14.759 were you off? Where do you need to readjust? 00:18:15.099 --> 00:18:19.900 That can be done within 30 minutes once a month. 00:18:20.140 --> 00:18:23.680 So think of it that way. Doing something in your 00:18:23.680 --> 00:18:26.940 financial life for 60 seconds a day could truly 00:18:26.940 --> 00:18:31.200 be life transformational. And that might include 00:18:31.200 --> 00:18:34.200 spending the 60 seconds a day it takes to track 00:18:34.200 --> 00:18:37.359 your spending. I do that with an app on my phone. 00:18:37.539 --> 00:18:40.960 And anytime I get a Java, anytime I spend money 00:18:40.960 --> 00:18:43.740 in other areas that doesn't come directly out 00:18:43.740 --> 00:18:46.440 of my account, I'm tracking where that money 00:18:46.440 --> 00:18:51.559 is going. So here's another one. Unlocking your 00:18:51.559 --> 00:18:54.740 motivation. So when we talk about discontentment, 00:18:54.740 --> 00:18:56.960 I gave that one from Florence Nightingale. I'll 00:18:56.960 --> 00:19:00.000 give the other by Dale Alexander, certified financial 00:19:00.000 --> 00:19:03.500 planner. He said, lasting change equals a passionate 00:19:03.500 --> 00:19:08.940 discontent and a powerful vision. So I asked 00:19:08.940 --> 00:19:12.980 people to answer in the chat, what do all financial 00:19:12.980 --> 00:19:15.930 emergencies have in common? And there were some 00:19:15.930 --> 00:19:18.390 different responses. But here's what I said. 00:19:18.509 --> 00:19:20.769 What do all financial emergencies have in common? 00:19:21.269 --> 00:19:26.009 Other than impeccable timing, you can plan for 00:19:26.009 --> 00:19:29.710 them. So this is where that powerful vision can 00:19:29.710 --> 00:19:32.609 come in. No one can predict the emergency, but 00:19:32.609 --> 00:19:34.230 you can predict that something in the future 00:19:34.230 --> 00:19:39.230 needs your attention in the present. And it might 00:19:39.230 --> 00:19:43.579 be tied to that passionate discontent. Give that 00:19:43.579 --> 00:19:46.720 anxiety that you felt last week or in January, 00:19:47.000 --> 00:19:50.039 especially as a federal civilian, or right now 00:19:50.039 --> 00:19:54.099 that purpose to prepare for the next emergency. 00:19:54.619 --> 00:19:57.380 So then we have the vitamin Cs of regaining control. 00:19:57.539 --> 00:20:00.900 Again, we're on that navigational. travel or 00:20:00.900 --> 00:20:04.500 journey on our boat. And so these are the vitamin 00:20:04.500 --> 00:20:08.339 C's of regaining control. So we want to avoid 00:20:08.339 --> 00:20:11.220 the scurvy and get our vitamin C at least once 00:20:11.220 --> 00:20:15.940 daily. And so here they are, curb spending. And 00:20:15.940 --> 00:20:18.880 this is the way that you can feel like you have 00:20:18.880 --> 00:20:22.200 some sense of control and focusing again on what 00:20:22.200 --> 00:20:26.150 you can control. So that might be breaking up 00:20:26.150 --> 00:20:28.589 with Amazon and DoorDash until the emergency 00:20:28.589 --> 00:20:31.170 has passed and accepting that you're in a financial 00:20:31.170 --> 00:20:35.970 emergency and behaving like it. Another one, 00:20:36.009 --> 00:20:39.450 call your creditors. Simply asking them to change 00:20:39.450 --> 00:20:43.660 the due date. It can buy you time. Then we have 00:20:43.660 --> 00:20:48.440 collect. Collect from whom or what can give you 00:20:48.440 --> 00:20:51.480 fast cash. And I'm not talking about going to 00:20:51.480 --> 00:20:54.660 a payday loan. I'm talking about collecting cash 00:20:54.660 --> 00:20:58.019 from who owes you money. It's time to pass around 00:20:58.019 --> 00:21:00.460 the coffers throughout the household, whether 00:21:00.460 --> 00:21:02.880 it's an adult child, a friend, or other family 00:21:02.880 --> 00:21:06.220 member. And listen. They are more likely to give 00:21:06.220 --> 00:21:08.640 during a financial emergency because they also 00:21:08.640 --> 00:21:11.980 need shelter, and usually it's shelter that you're 00:21:11.980 --> 00:21:14.660 providing them. Also another way to collect, 00:21:14.859 --> 00:21:18.359 what assets can you sell? You might have something 00:21:18.359 --> 00:21:23.799 sitting in a lot or in a storage facility that 00:21:23.799 --> 00:21:27.039 is just rotting, but someone else can breathe 00:21:27.039 --> 00:21:30.019 new life into it and pay you good money for it. 00:21:30.480 --> 00:21:35.210 Another is connect. Use your resources. And for 00:21:35.210 --> 00:21:37.809 those who are not active duty or who are not 00:21:37.809 --> 00:21:42.190 retirees from a military branch, United Way can 00:21:42.190 --> 00:21:44.769 direct you. You can dial 2 -1 -1. But those who 00:21:44.769 --> 00:21:48.190 are active duty or retirees from a military branch, 00:21:48.329 --> 00:21:51.329 you can go to your respective relief society, 00:21:51.609 --> 00:21:53.730 whether it's Army Emergency Relief, Air Force, 00:21:54.009 --> 00:21:58.309 Aid, or even Navy Marine Corps Relief. And then 00:21:58.309 --> 00:22:01.710 the last C, the last vitamin C, is to claim the 00:22:01.710 --> 00:22:05.240 future. you want. Any discomfort that you've 00:22:05.240 --> 00:22:09.599 felt since January, allow that to be your wake 00:22:09.599 --> 00:22:13.640 -up call. All right, and now let's move into 00:22:13.640 --> 00:22:17.079 allies. And these are your anchors for your boat 00:22:17.079 --> 00:22:20.019 and moving you towards that financial destination. 00:22:20.700 --> 00:22:25.059 So here is a quote by Isaac Newton, when two 00:22:25.059 --> 00:22:31.380 forces unite, their efficiency doubles. So alliances 00:22:31.380 --> 00:22:34.680 cannot be formed in isolation. This is where 00:22:34.680 --> 00:22:37.799 you can reach out, connect with other people, 00:22:37.880 --> 00:22:41.299 find a money mentor. And again, if you are here 00:22:41.299 --> 00:22:44.380 at Team Redstone Arsenal and are eligible for 00:22:44.380 --> 00:22:46.299 financial readiness, I can help you with that. 00:22:46.339 --> 00:22:48.220 I can be your money mentor, your accountability 00:22:48.220 --> 00:22:51.660 partner. Or if you don't have access to me, maybe 00:22:51.660 --> 00:22:54.839 it's someone that you admire who does manage 00:22:54.839 --> 00:22:58.720 their... finances well, or someone that you can 00:22:58.720 --> 00:23:02.619 trust to provide you with financial socialization 00:23:02.619 --> 00:23:06.420 that is actually sound and that it could actually 00:23:06.420 --> 00:23:09.519 get you somewhere. And what if your significant 00:23:09.519 --> 00:23:13.619 other became your ally instead of your enemy? 00:23:14.480 --> 00:23:17.940 And I know that could be a whole level of counseling 00:23:17.940 --> 00:23:20.200 sessions that would be required to get to that 00:23:20.200 --> 00:23:24.059 place. But marital financial counseling and even 00:23:24.059 --> 00:23:26.859 premarital, financial counseling is actually 00:23:26.859 --> 00:23:30.299 a thing. And then financially socializing your 00:23:30.299 --> 00:23:32.799 children in such a way to where they can become 00:23:32.799 --> 00:23:35.920 financially independent as well. And do this 00:23:35.920 --> 00:23:39.460 whole concept operating from your strengths and 00:23:39.460 --> 00:23:42.400 not your weaknesses. This is where you can challenge 00:23:42.400 --> 00:23:45.539 your money mindset and focus on what you've done 00:23:45.539 --> 00:23:49.220 well and doing more of that. There's a famous 00:23:49.220 --> 00:23:52.759 Japanese proverb that states, when you're thirsty, 00:23:53.359 --> 00:23:56.160 It's too late to dig a well. And then there's 00:23:56.160 --> 00:24:00.019 another proverb. If you do nothing during a difficult 00:24:00.019 --> 00:24:04.359 time, your strength is limited. So again, if 00:24:04.359 --> 00:24:07.779 we operate, if first we plan and do the things 00:24:07.779 --> 00:24:10.180 that we know we must do so when the time comes 00:24:10.180 --> 00:24:13.819 we are prepared for that event, but if also we 00:24:13.819 --> 00:24:16.319 work from a place of strength rather than vulnerability 00:24:16.319 --> 00:24:19.759 or liabilities or weaknesses, then we feel more 00:24:19.759 --> 00:24:23.819 confident and competent and moving. towards that 00:24:23.819 --> 00:24:28.180 direction. So last thing with this metaphor, 00:24:28.839 --> 00:24:33.059 sunlight is a natural disinfectant. It's time 00:24:33.059 --> 00:24:36.019 to expose those financial places where the sun 00:24:36.019 --> 00:24:39.940 hasn't shined in months or years. If you want 00:24:39.940 --> 00:24:43.200 something different, you must do something different. 00:24:43.930 --> 00:24:46.789 And that is through that financial exposure therapy. 00:24:47.009 --> 00:24:49.529 And again, clinical therapy not implied, but 00:24:49.529 --> 00:24:52.470 you are exposing yourself to approaching the 00:24:52.470 --> 00:24:54.849 numbers, recording the numbers, experimenting 00:24:54.849 --> 00:24:58.430 with the numbers, practicing, and noticing when 00:24:58.430 --> 00:25:03.730 change is occurring. And then finally, transitions 00:25:03.730 --> 00:25:07.930 or recalculating. So for those folks that may 00:25:07.930 --> 00:25:10.710 have said, hey, if I knew that I were going to 00:25:10.710 --> 00:25:13.819 have some level of financial hardship, What three 00:25:13.819 --> 00:25:16.519 things would I do differently? A lot of folks 00:25:16.519 --> 00:25:19.599 did state that they would polish their resume. 00:25:19.900 --> 00:25:22.940 And this is a time for you to practice your elevator 00:25:22.940 --> 00:25:27.460 speech. Update your resume. Know your worth. 00:25:27.559 --> 00:25:32.509 So if you did have to prepare... for a new job, 00:25:32.690 --> 00:25:35.809 how can you shine? How can you show someone that 00:25:35.809 --> 00:25:38.970 you have what it takes to remain employable? 00:25:39.170 --> 00:25:41.990 As federal employees, we should never get to 00:25:41.990 --> 00:25:46.950 a place of feeling where we're untouchable and 00:25:46.950 --> 00:25:51.049 we could never be released. When we got the five 00:25:51.049 --> 00:25:54.710 -bullet summary email that very first time, I 00:25:54.710 --> 00:25:57.390 printed out the email and I took it home and 00:25:57.390 --> 00:26:00.140 I talked to my girls about it. I said a lot of 00:26:00.140 --> 00:26:02.440 folks don't like this five -bullet summary that 00:26:02.440 --> 00:26:04.900 we have to give the Secretary of Defense every 00:26:04.900 --> 00:26:10.559 week. However, I'm excited about it because somebody 00:26:10.559 --> 00:26:14.380 is asking me, hey, what did you do last week? 00:26:14.519 --> 00:26:17.980 What difference did you make last week? And I 00:26:17.980 --> 00:26:21.740 thought this is fantastic. This is an opportunity 00:26:21.740 --> 00:26:26.470 to dust off. all the stagnation that may have 00:26:26.470 --> 00:26:29.490 been present and actually show, hey, here are 00:26:29.490 --> 00:26:32.069 the wonderful things that our team, that our 00:26:32.069 --> 00:26:35.750 staff, that we're doing to improve the lives 00:26:35.750 --> 00:26:39.609 of others. And by doing so, we're improving our 00:26:39.609 --> 00:26:43.369 worth. We're creating job security for ourselves. 00:26:43.450 --> 00:26:47.410 So I told my girls, always be ready to answer 00:26:47.410 --> 00:26:51.079 a five -bullet summary. And that is my encouragement 00:26:51.079 --> 00:26:53.819 to you as we close out on today's discussion 00:26:53.819 --> 00:26:57.960 on navigating financial uncertainty. Always have 00:26:57.960 --> 00:27:01.619 a five -bullet summary of how you can improve 00:27:01.619 --> 00:27:07.279 your finances. Until next time, be sure to review 00:27:07.279 --> 00:27:10.160 and rate the pod wherever you listen. We thank 00:27:10.160 --> 00:27:10.920 you for listening.