Thrive in the Downturn: Your Escape Route

by Kathryn Amenta, Financial Advisor

News of the financial downturn just keeps getting worse. We’re afraid to turn on the TV or radio. We cringe at the declining value of what we own, and often the increasing volume of what we owe. We feel paralyzed when asked to make plans for the next few months, let alone the next few years. We feel trapped when we think about our career stability.

It’s hard to escape the fear when the doomsday mindset is there to besiege us at every turn of the TV dial, flip or click of the news page, or hall-talk with a colleague. Yet, remaining positive is the key to thriving even in this downturn—and you have the power to do so. Just remember: the media—true to form—thrives on bad news, and the talking heads are having a field day.

Step 1 in your financial escape route: Reduce your exposure to the 24/7, blow-by-blow details of the bailouts, plummeting value and joblessness. I’m not suggesting that you cut off your news source entirely; just limit your exposure to the airtime onslaught. And don’t dial into the news just before retiring to bed at night.

What we are experiencing is the rapid unraveling of an economy that, for 50 years, has been built on unchecked consumerism and debt. In those 50 years, we have totally bought into the false assumption that our personal value is dependent on always getting more, and that the key to our nation’s economic health is consumer confidence (in buying more). Now with the downturn, there is a beginning groundswell back to the economic values of our fore-families—that is, buying what you truly need, saving so you can afford the treats you want, and building a nest egg for a rainy day and your future. Add to that, the desire (finally) to eliminate our debt.

This shift to more pragmatic and healthier economic behaviors is a movement toward stabilization. Yet, the transition from where we are today to where we need to get (personally, nationally and internationally) will be fraught with uncertainties, missteps and backfires. This is to be expected with the massive change that is inevitable. Embracing this shift and adopting positive money behaviors will empower you to not only survive—but also thrive—in the downturn.

Step 2 in your financial escape route: Tap into your adaptability. We humans have survived for eons because we are innately capable of adapting to a changing environment. Don’t get stuck by having one perception of who you are, what you do and how you live. The real you is not any of these perceptions—it’s something much deeper and more essential. Get in touch with your core Self and re-ignite faith in your adaptability. Keep your eyes open to new possibilities—so they may come to you.

Step 3 in your escape route: Gain clarity about your financial situation. Clarity means concretely understanding the impact of your buying patterns, your debting and saving. It means looking at the effects of underlying beliefs that have caused your money behaviors, and your perceptions around spending and self-satisfaction. Clarity is the best antidote to fear and uncertainty. This knowing is not only empowering in itself, it also delivers you to Step 4 in your escape route: Adopting a cash flow plan that enables you to successfully manage your money, your decisions and your life.

A cash flow plan is not a starvation budget. Anyone who has struggled with a diet knows that starvation doesn’t work—in fact it just makes you hungry for more. Rather, a cash flow plan is a roadmap enabling you to successfully manage your income, spending and saving. Atop the consumer consciousness of “more,” most of us never learned money management. These are important life skills—regardless of where you lie on the economic scale. Just as clarity is your reality check, a cash flow plan is your tool to live well within your reality.

Yes, despite the downturn, we can live well. In fact, we can live richer and more satisfying lives. Decreasing our need for “more” removes a lot of stress from our lives and moves us toward a self-satisfaction built on inner resourcefulness and a connection to what is truly of value in our lives. Value is not about what we can buy; value is about living a life that has meaning and connection to people and the world around us.

Looking for a way to shift your consumer habits? It has become even harder these days because retailers are offering such fantastic bargains. Here is an experiment that I invite you to try. The next time you consider making a purchase, pause for a moment before you automatically pull out your cash, debit or credit card. Reflect on the time, energy and investment of your life that it took to generate that money. Then ask whether or not the purchase is worthy of you. Will that purchase add value to your life? Is it worth the hard earned cash that took time in your life to amass? What needs will you have to sacrifice to make that purchase? If this experiment works for you, consider making it a practice.

These are just a few practical steps that will help you remain positive and thrive in the economic shift. Try them. You just might experience a greater sense of control in a world that seems to be increasingly out of control. You might also find a greater connection to what is really valuable in your life and to the people you touch. This has been my experience.

© 2009 Kathryn Amenta

Kathryn Amenta is an expert Financial Advisor to individuals, couples and business partners. She uniquely focuses on overcoming personal barriers to financial success, including underlying beliefs about money, spending, saving and self-worth. Through her proprietary cash flow tools, she has helped clients across the US learn to successfully manage their money, create action plans for their future and enjoy financial security in any economy.

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