Since the 2008 real estate and stock market crash, some people have been able to get back on their feet and continue to thrive in their careers and businesses. While others have dealt with devastating blows on their real estate, unemployment, and investments that haven't worked out just the way they thought it would in the long run. So, what happens when it feels like you are so far behind or lost your money and are still facing how to hit your financial goals? Here are four tips from Your Smart Money Moves when you need to regroup and get yourself back on track to achieve financial success.
1.) Been there, done that attitude - People make mistakes and you may have made a few with your money. Maybe you overleveraged yourself in residential or commercial real estate. Possibly you invested in a few private deals with your friends that ending up going south. It could be that you were making a six figure income and aren't quite at that level anymore. No matter what may be the case, remember that you put yourself in a position just a few short years ago to be able to afford to be part of those prior opportunities. Know that once you've been there, with hard work you can get to those investment levels again. Confidence begets confidence.
2.) Remember, revenue drives the engine of wealth - If you feel like you are way behind, nothing solves problems better than generating revenue. You need to think in round two about getting multiple streams of income rather than depending just on your corporate job. If you own a business, be certain that you have different lines of revenue in case of economic or industry changes. Focus on continuing to grow your skills in technology, language, and education to be sure that you can drive more and more revenue for your family.
3.) Revisit your goals and financial plans - I've found over the years that most poor decisions come because you are too emotionally invested in your decisions. Make sure to hire a competent Private CFO®, financial advisor, and/or CPA who you can bounce important financial decisions off of before you make them. You should review your goals to figure out how much you need to save and use much more conservative assumptions in your overall plan. Make sure to avoid really risky or leveraged decisions that hurt you in round one.
4.) Be the turtle in round two- The turtle is all about getting rich slowly. If you start to have a ton of excess cash flow or come into lump sums of money, don't be bashful about building a slow growth plan. Don't worry about your friend that tells you they hit some stock deal or got some piece of real estate rock bottom. Most of the time it probably isn't true anyway. Bank your cash in round two and the turtle will win the race.
No matter what age you are or how far behind you may be after the past three to four years, financial success can still be achieved. The great Milton Hershey went bankrupt twice before he hit Hershey fame, and most others who have climbed the mountain of success did it with great failures along the way. If you feel like you've lost it all, then maybe you are further up the mountain than you think!
Written by:
Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®
Co-CEO and Founder of oXYGen Financial, Inc
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