Lessons From COVID-19 (part 1/2)

What have personal insights have you gleaned since the Coronavirus disrupted the lives of all Americans and the world at large? (except Sweden!). What epiphanies have you had while sheltering in place at home? Have you used this time as an opportunity to reflect on ways to be better coming out of it or have you bought into the fear that keeps you feeling helpless and hopeless? I hope it's the former...

I would be willing to bet you remember exactly where you were, who you were with and what you were wearing on September 11, 2001. Am I right?

I was at home with my oldest daughter who was almost 9 months old at the time and although I didn’t know it then, was pregnant with my 2nd daughter (who is a senior in HS this year).  It was about 8:00 am and a repair man came to the house and frantically instructed me to turn on the TV while uttering something about a plane hitting the World Trade Center. At the time, it seemed unbelievable, unfathomable and hard to comprehend what the future would look like but fast forward almost 19 years and the "new normals" that emerged from that unprecedented event are ones that we can’t imagine living without now. (I mean, could you imagine going to the airport without having to wait in a line to have your luggage screened?)

I suspect the same will be true in 5, 10, 20 years from now when we look back at how the virus changed us as a nation and the world at large and embrace our new normal.  But right now we have NO idea what that new “Normal” will look like and I don’t know about you, but the thought of living in a world where our financial futures are at risk because of an invisible enemy and at the mercy of projections based on unproven scientific models.  Or, a world where we have to stand 6-feet apart, wear masks and limit our exposure to other people is NOT a world I want to live in and NOT something I’m willing to accept as normal - not now, not ever!

So, what’s the solution?  

I believe at this point in time we can’t be so eager to get back to NORMAL, but what we can look forward to is striving for a place of BETTER.  A place of AWARENESS, a place of SELF-CARE and a place of KNOWING we have more CONTROL than we actually give ourselves credit for.

But, what does that control look like??? How do we set ourselves up for the future when the future seems so uncertain?

The overarching theme that has been resonating in my thoughts and observations is that now, more than ever we have to do everything in our power to make preventative choices that vastly improve our health and finances. And, if we learn ONE thing from this season, it must be that we have to stop living from day to day unaware and unprepared for the unknown. How do we do this? 

One word: Fortification

As a Certified Health Coach, I look at health holistically and encourage my clients to consider all areas of their life (and lifestyle) as integral parts to the health equation. This holistic approach includes mindset, nutrition, exercise, stress management, sleep hygiene, hydration, environment AND finances, which is what I want to discuss today.

According to CNBC Money, 78% of full-time workers live paycheck to paycheck, and the vast majority of Americans have less than $1,000 saved for that inevitable rainy day.  Well, that rainy day arrived...swiftly and fiercely...leaving many without the proverbial umbrella to shelter them from the rain.  Are you part of the 22% who were prepared for this rainy season?

My dear friend Ruth Ann Janson is the founder and owner of Tidy Financials; her vast experience in the financial field includes mergers and acquisitions with PWC, Senior Finance Director at a large, privately held Technology company and Executive Assistant for the Chairman of an International Actuarial Firm. She now focuses more on Financial Organization for individuals and business and comes from a place of simplifying and demystifying the idea of financial health by helping her clients come up with a systematic plan to fortify their finances through a 6-step process outlined below. So, grab a pen and paper and let’s get started…

1. Be honest about your primary income; where it is right now and what it's projected to be over the next 6 months. Even though it may be more estimation than actual income it's important to get a good idea of what it could look like.
2. Get creative with a secondary income source and look into ways to add income, even if it's just a few hundred dollars per month. I'm very thankful for my side-hustle that has paid my bills during this crazy time and because it's a consumable item, my business is growing and thriving amidst an unstable economy. (To find out more, email me at [email protected])
3. Minimize non-essential expenses and start to put back money into an emergency fund. And, look at areas where you're saving money right now (think: gas, tolls, restaurants, bars) and set those funds aside, even if it's just $25 per week!
4. Prioritize your essential expenses by making a list. This includes rent, mortgage, car payment, insurance, utilities, medications, etc. Look through your expenses over the last several months to make sure you list everything that's essential.
5. Reset by differentiating between your wants and needs and then prioritize your wants for a time when you can 'treat' yourself after all essentials and savings requirements are met.
6. Pause to assess whether you have the free cash flow to save and invest or whether you need to be using your income flow to maintain current expenses.

Taking a serious look at your finances may seem stressful right now but doing so will actually give you peace of mind because it allows you to see where the gaps lie and come up with a realistic plan to fill in where necessary.  Contact Ruth Ann Janson at Tidy Financials for more information.

Michelle Ward is a Certified Health Coach with a Masters of Science in Health Coaching and Applied Nutrition and a Clean-Crafted wine consultant with Scout & Cellar wine. For a complimentary consultation or information about joining her team, email Michelle at [email protected].