Plan of Action in a Recession-Prone Economy
When a recession plagues our country, American's lose jobs, homes, even relationships due to financial stress. What most people in our country don't do is create a plan of action to sustain themselves during such difficult times. Wise people have an additional income stream by working as an independent professional in industries like Real Estate, Tax Professional, and my favorite, Personal Finance (you can't purchase a home, save, etc., if you don't have your money right). Well, real estate has peaked which means it's about to take a turn, tax season is over, so that leaves Personal Finance as an option. It's the most sought after part-time-to-full-time career today and it's not seasonal. Money isn't going out of style. People need it and want it. Wouldn't you agree?
Imagine this......you buy your house today, you get laid off or fired 2 years later, the job market is dead, and you never built up an emergency fund nor did you have a plan of action (Plan B). A few months later, your home is in foreclosure and you're forced to move to an apartment or worse, with family or friends. This is what transpired in 2007 when the real estate market crashed. This has also been the most common story I've heard from my clients and they each have said they wished they would've met someone like me years ago. Someone to be on their side and teach them simple financial concepts to protect themselves from the very issues of economic uncertainty.
According to this article, 46% of Americans don't have enough money in savings to cover a $400 emergency expense. If this is a working American, imagine if they lost their job. Is this you? How does it make you feel? I know how I felt. Awful. Sick to my stomach. Like I would never get out of this rut. What did I do? I created my Plan B.
For those who don't know my story, I will give you a brief summary. I worked for the Chicago Transit Authority for 13 years. During this time, I obtained two degrees in order to keep myself "marketable" to the company. I started my business as an independent Financial Professional in July of 2014 and my position at CTA was abolished in August of 2014. As you can see, my Plan B became my Plan A very quickly. Can you or someone you know relate to that?
The point I am hoping you all catch is that having a Plan B is essentially what saved me from complete financial ruin. Would you be ok if you lost your job or source of income?
This is the reality of today.
https://www.theatlantic.com/magazine/archive/2016/05/my-secret-shame/476415/