Welcome back to another Sci -Fi episode, where
today we'll continue to examine how we think,
feel, and behave with money, especially during
times of financial uncertainty. Since January,
federal civilians have gotten somewhat of a shake
-up and somewhat of a wake -up call. So I designed
this class as a way to empower individuals, whether
they were thinking of accepting the delayed resignation
program or they were thinking of accepting the
early retirement that came out a little later.
And overall, just how to prepare themselves financially
should another opportunity arise or. Another
anxiety -provoking strategy came out so that
they could feel confident in their money -making
decisions. So what I wanted to do is I wanted
to make sure that the civilian workforce felt
empowered. Instead of focusing on things they
can't control, focusing on the things that they
can control and even reframing some of the things
that they thought were negative. And really pointing
out that some of these things that you thought
were triggers or anxiety provokers were actually
things that over time will have promoted growth
for each individual. So for example, now knowing
that not every federal civilian, just because
you've reached your tenure or you have achieved
your probationary status or have gone beyond
your probationary status doesn't mean that you
are secure for life in that position. So just
other things as well beyond finances, keeping
your resume updated and things of that nature.
What I did want to do is I wanted to bring home
or drive home somewhat of a metaphor as we are
navigating through this financial uncertainty
of thinking of it as being on a ship. And navigating
treacherous water. Sometimes that water is beautiful,
it's peaceful, it's calm, and folks flock to
the beach just to see that serene scene. Yet
other times the water is choppy and it's dangerous.
So we want to make sure that we have the tools
necessary. So I started right off the bat with
a question. Just to get you prepared, remember
the game you'd play as a kid or even with your
kids? You would ask, if you knew you would end
up on a deserted island, what three things would
you bring with you? And if you notice, this game
really gets to the heart of what you or your
kids need most. Is it safety, comfort, or pure
survival? So for many of us, it feels like we
might be on that deserted island right now. and
are doing what we can to survive. But I wanted
to share with you some of the input from the
folks that played along. Some said the three
things I would bring, a knife, flint, canteen.
That makes sense, right? Another said matches,
axe, knife, book. And now we're moving into something
that would keep them comforted and even keep...
them somewhat occupied and distracted. Another
one put a journal and a pen and a knife. The
smarter individual, the more strategic individual,
put satellite phone, right? And that's not to
say that the others weren't smart. Again, it
just shows the need for comfort or survival,
whatever your responses are. And someone even
said a boat, fuel, and a machete. So again, you
can see the different types of things that folks
were And even some put Bible on there as well.
So again, shows you the difference in what people
will find as comforting on this deserted island
and help them survive while they're there. So
then I changed the question just a little bit
and kind of posed it this way that, you know,
sometimes it can feel as if we don't, like we're
already on that deserted island. What if we knew
we were going to lose one paycheck or maybe 25
% of our paycheck because we had to find a quick
job, but it was a less paying job. And so I asked
the question, what would you, well, let me actually
read you the question. Financial uncertainty
can feel like you're on a deserted island or
up a creek without a paddle. If you knew financial
hardship was on its way. What three things would
you do differently? So just like in that initial
question, what three things would you bring with
you if you knew that you were going to be on
a deserted island? This changes it up a little
bit. If you knew financial hardship was on its
way, what three things would you do differently?
And so here's some of the responses. Stop eating
out as much. Quit drinking. Increase my TSP contributions.
And notice, first response. That is something
that is within that person's control. Another
person said save, invest, and consolidate. So
they're thinking more of debt as well, as well
as saving for the future. And then you have also
cutting spending, cleaning up my resume, and
even downsizing. So again, it just goes to show
what might be happening in each of these individual
lives as they respond the way that they're responding.
Another one said, cut off non -essentials and
consolidate debt. Again, this person's in a completely
different place than the person who wants to
increase their TSP and stop eating out as much.
And then you have others that are saying, stop
subscriptions, increase savings, and buy only
the essentials at a grocery store. So if you
can hear this, and I didn't read them all. There
are so many things that could be done that is
within a person's level of control on an individual
level that they can start doing now to better
prepare for financial uncertainty. So we talked
first about navigational tools. So again, we're
on that ship and we're using the metaphor of
navigating through financial uncertainty or navigating
through different types of waters. So the first
thing we need is a financial map or a destination.
Where are we headed financially? What use is
your income without that direction? And knowing
that direction is driven by destination, where
do I want to be financially in six months, five
years, 10 to 15 years, et cetera? And that goes
back to just asking that one simple question
and finding where people's comforts lie. What
three things would you do differently if you
knew financial hardship was on its way? They
already knew what they needed to do. I would
say that many of the folks that took this class,
they probably didn't even consider that externally
outside of that class. And so now they have a
framework to work from. Now they have a financial
map. So where do you want to be when you retire?
And not just physically, but financially, emotionally,
relationally. What would let you know that you
made it? And so this again is where this destination
or financial map will be useful for you in navigating
financial uncertainty. So if you knew your destination,
you could plan and at least feel some sense of
control. And again, that goes back to the questions
that we were asking before. So one of the things
that we talk about too is the different tools
that you can use as part of this navigation.
looking ahead to remain on course, like having
that ability to see what might be in front of
you. I know that we can't predict the future,
but we can get out our financial binoculars and
at least see what might be in the distance for
us that we need to plan for or look out for.
And one way of doing that, the best financial
tool that's available to us in that regard is
a cash flow analysis. And from that cash flow
where you are calculating how much income you're
bringing in and how many expenses you have going
out, creating a spend plan from that cash flow
analysis. Now assigning every dollar a job and
making sure that the spend plan is taking you
where you actually want to go rather than just...
teetering along, drifting on that driftwood,
not even knowing when you're going to get to
your destination. Another tool is knowing your
net worth. That measures your wealth. When you
know what your wealth looks like, when you have
that calculation, you know where you are currently.
And then from there, you work to know where you
want to be. So at least it gives you reference.
And then another navigational tool is PowerPay.
And that's used for debt management. It's a free
resource where you can plug in the numbers and
make yourself a repayment plan. No fees, no contracts
involved whatsoever. So sure, when it comes to
navigating financial uncertainty, it's good to
know what has happened that will not be helpful.
So maybe after this initial shakeup in the federal
workforce, you look back and say, wow, I was
not prepared if I were let go because I did not
meet probationary status or because I wasn't
performing as well as I know I should have been.
You can look back and say, OK, maybe. Maybe not
knowing where that was going to take me, okay,
but at the same time, now I know what I can do
differently. So it doesn't help to beat yourself
up so badly that you can't move forward. If anything,
we want to get you to a place where you feel
worthy enough to make those next steps. So you
can inflation -proof your spend plan and your
portfolio by, one, living below your means, and
two, saving money. I mean, those are just different
ways to navigate those treacherous waters because
I guarantee you the folks who had savings, the
folks who weren't involved in a lot of debt,
and folks who had put together a financial plan
probably weren't as shaken up. I'm sure there
was some disappointment. Oh my goodness, if I
lose my job, this was in my financial plan. It
wouldn't be desirable, but at least I have the
ability to survive until I get a new job. So
I wouldn't want to speak for anyone just because
they had savings or they had a financial plan.
But here are some dangers we need to look for,
especially when those waters start getting a
little more choppy. When we're not tracking our
spending, we are not. seeing where our money
is going. And that is definitely a sign of turbulent
waters because we cannot at least visualize where
we're going to land if we're not tracking after
we've created that beautiful spend plan. Living
above our means, we just talked about that. Or
it's not just living above your means, it's living
at two incomes. So it used to be, and this ages
me, I know, but when I grew up, I always got
the advice, hey, when you get married and you
have a dual income, try to live off one income.
Because you never know when one of you might
lose your job or might not want to work because
maybe a child comes into the family and you're
wanting to adjust and make smarter financial
decisions while you're taking some time off from
work. Or you just refuse to pay child care for
whatever reason. It is rather expensive these
days. So there could be many reasons why living
at two incomes may not be the best idea. And
so that could create what we would call a tsunami
or at least create favorable conditions for a
tsunami where one emergency completely wipes
out. both incomes. So again, we want to learn
to live at one income or at least live below
our means. This is not Olivia saying, oh, we
got to now learn how to live just at one income.
No, that's just some old advice that absolutely
can be tailored to your individual situation
and your individual needs. But giving above your
means is another danger. It's one thing to live
above your means, but another to give above your
means, where it just creates rocky shores for
those relationships, all relationships involved.
No tax planning is another danger that creates
groundswell. Then you're eaten up by this never
-ending rising water of taxes. And we want to
reduce your tax liability, not increase your
tax liability. And then another danger is not
estate planning. where you have that rip current
that comes in, and that rip current pulls you
both under. If one of you passes, then all of
a sudden, if there's no income that is left over,
you don't know how to access that income or those
benefits, then you're both under. I have a quote
here that I really like by Florence Nightingale.
Were there none who were discontented with what
they have? the world would never reach anything
better. Let me say that again. Were there none
who were discontented with what they have, the
world would never reach anything better. So I'm
talking about these dangers. I'm talking about
this uncertainty, not to scare you further, but
just to help you understand that there's probably
some financial discontentment in your life. And
it's okay to have that level of discontentment
so that you can actually create better life for
yourself and it would provide some level of direction
of what you need to do next so then I had another
poll within this class I asked hey if you knew
that you could transform your life by doing one
thing for five minutes a day would you do it
now All the respondents said yes. So I had 100
% of the folks say yes. And I felt a little bad
after because I kind of got onto them a little
bit. I said, this is what you call the halo effect,
where you want your instructor to view you favorably
because of how you answered. Because we know
that that's not true. We know doctors would laugh
at that. Physical therapists would laugh at that.
Financial therapists, financial counselors, you
name it. A lot of folks are not putting in the
five minutes a day for life transformational
work. We would like to think that we would put
in the time every day to do something different
that would reduce our financial uncertainty.
But truly, when it comes to actually sitting
down and doing those things, a lot of folks aren't
doing them. Five minutes a day times 30 days
is two and a half hours. Are people really spending
two and a half hours a month on their finances?
No. A lot of folks may not really be putting
the effort in according to what they desire.
I gave the example of physical therapy. There's
one exercise that I have done consistently since
I have heard from my physical therapist. The
number one stretch to reduce back pain, especially
lower back pain, is a hamstring stretch. And
I remember the physical therapist saying, all
you have to do, do 60 seconds a day and you will
see a big difference. I took her up on that.
And I started doing 60 seconds a day. And I had,
it was a he and a her. I had several physical
therapists and physical therapy assistants voicing
the same thing over and over again. So I took
them all up on it. And every day, I do 60 seconds
of hamstring stretches to reduce lower back pain.
And I will tell you, it is effective. So here's
the question. If you're not willing to do five
minutes a day because thinking, wow, five minutes
a day times 30 days, two and a half hours, geez,
I probably really wouldn't spend that much time
on my finances. Would you be willing to do the
one thing in your financial portfolio for 60
seconds a day that will transform your financial
life? I hope the answer is yes. Because 60 seconds
a day times 30 days, is only 30 minutes. And
that's all I'm asking from my clients is, hey,
at the end of every month, create your budget,
go back and look at how you spent. After you've
tracked your spending, how well did you do? Where
were you off? Where do you need to readjust?
That can be done within 30 minutes once a month.
So think of it that way. Doing something in your
financial life for 60 seconds a day could truly
be life transformational. And that might include
spending the 60 seconds a day it takes to track
your spending. I do that with an app on my phone.
And anytime I get a Java, anytime I spend money
in other areas that doesn't come directly out
of my account, I'm tracking where that money
is going. So here's another one. Unlocking your
motivation. So when we talk about discontentment,
I gave that one from Florence Nightingale. I'll
give the other by Dale Alexander, certified financial
planner. He said, lasting change equals a passionate
discontent and a powerful vision. So I asked
people to answer in the chat, what do all financial
emergencies have in common? And there were some
different responses. But here's what I said.
What do all financial emergencies have in common?
Other than impeccable timing, you can plan for
them. So this is where that powerful vision can
come in. No one can predict the emergency, but
you can predict that something in the future
needs your attention in the present. And it might
be tied to that passionate discontent. Give that
anxiety that you felt last week or in January,
especially as a federal civilian, or right now
that purpose to prepare for the next emergency.
So then we have the vitamin Cs of regaining control.
Again, we're on that navigational. travel or
journey on our boat. And so these are the vitamin
C's of regaining control. So we want to avoid
the scurvy and get our vitamin C at least once
daily. And so here they are, curb spending. And
this is the way that you can feel like you have
some sense of control and focusing again on what
you can control. So that might be breaking up
with Amazon and DoorDash until the emergency
has passed and accepting that you're in a financial
emergency and behaving like it. Another one,
call your creditors. Simply asking them to change
the due date. It can buy you time. Then we have
collect. Collect from whom or what can give you
fast cash. And I'm not talking about going to
a payday loan. I'm talking about collecting cash
from who owes you money. It's time to pass around
the coffers throughout the household, whether
it's an adult child, a friend, or other family
member. And listen. They are more likely to give
during a financial emergency because they also
need shelter, and usually it's shelter that you're
providing them. Also another way to collect,
what assets can you sell? You might have something
sitting in a lot or in a storage facility that
is just rotting, but someone else can breathe
new life into it and pay you good money for it.
Another is connect. Use your resources. And for
those who are not active duty or who are not
retirees from a military branch, United Way can
direct you. You can dial 2 -1 -1. But those who
are active duty or retirees from a military branch,
you can go to your respective relief society,
whether it's Army Emergency Relief, Air Force,
Aid, or even Navy Marine Corps Relief. And then
the last C, the last vitamin C, is to claim the
future. you want. Any discomfort that you've
felt since January, allow that to be your wake
-up call. All right, and now let's move into
allies. And these are your anchors for your boat
and moving you towards that financial destination.
So here is a quote by Isaac Newton, when two
forces unite, their efficiency doubles. So alliances
cannot be formed in isolation. This is where
you can reach out, connect with other people,
find a money mentor. And again, if you are here
at Team Redstone Arsenal and are eligible for
financial readiness, I can help you with that.
I can be your money mentor, your accountability
partner. Or if you don't have access to me, maybe
it's someone that you admire who does manage
their... finances well, or someone that you can
trust to provide you with financial socialization
that is actually sound and that it could actually
get you somewhere. And what if your significant
other became your ally instead of your enemy?
And I know that could be a whole level of counseling
sessions that would be required to get to that
place. But marital financial counseling and even
premarital, financial counseling is actually
a thing. And then financially socializing your
children in such a way to where they can become
financially independent as well. And do this
whole concept operating from your strengths and
not your weaknesses. This is where you can challenge
your money mindset and focus on what you've done
well and doing more of that. There's a famous
Japanese proverb that states, when you're thirsty,
It's too late to dig a well. And then there's
another proverb. If you do nothing during a difficult
time, your strength is limited. So again, if
we operate, if first we plan and do the things
that we know we must do so when the time comes
we are prepared for that event, but if also we
work from a place of strength rather than vulnerability
or liabilities or weaknesses, then we feel more
confident and competent and moving. towards that
direction. So last thing with this metaphor,
sunlight is a natural disinfectant. It's time
to expose those financial places where the sun
hasn't shined in months or years. If you want
something different, you must do something different.
And that is through that financial exposure therapy.
And again, clinical therapy not implied, but
you are exposing yourself to approaching the
numbers, recording the numbers, experimenting
with the numbers, practicing, and noticing when
change is occurring. And then finally, transitions
or recalculating. So for those folks that may
have said, hey, if I knew that I were going to
have some level of financial hardship, What three
things would I do differently? A lot of folks
did state that they would polish their resume.
And this is a time for you to practice your elevator
speech. Update your resume. Know your worth.
So if you did have to prepare... for a new job,
how can you shine? How can you show someone that
you have what it takes to remain employable?
As federal employees, we should never get to
a place of feeling where we're untouchable and
we could never be released. When we got the five
-bullet summary email that very first time, I
printed out the email and I took it home and
I talked to my girls about it. I said a lot of
folks don't like this five -bullet summary that
we have to give the Secretary of Defense every
week. However, I'm excited about it because somebody
is asking me, hey, what did you do last week?
What difference did you make last week? And I
thought this is fantastic. This is an opportunity
to dust off. all the stagnation that may have
been present and actually show, hey, here are
the wonderful things that our team, that our
staff, that we're doing to improve the lives
of others. And by doing so, we're improving our
worth. We're creating job security for ourselves.
So I told my girls, always be ready to answer
a five -bullet summary. And that is my encouragement
to you as we close out on today's discussion
on navigating financial uncertainty. Always have
a five -bullet summary of how you can improve
your finances. Until next time, be sure to review
and rate the pod wherever you listen. We thank
you for listening.