The Up Side of the Down Side

 Times are tough may get tougher still as federal, state, and local governments try to deal with balancing budgets, stimulating the economy and creating jobs.  By August 1, 2011, Congress will need to raise the debt ceiling so that the U.S. does not default on its debts.  The housing market, which needs to recover before the economy can truly progress, is still weakening, with no real near-term end in sight. Of course, until our debt and deficit problems are alleviated, it will be difficult for the housing market to recover, as no one wants to borrow money in spite of low rates.  Globally, the picture is bleak, as well, as Europe is dealing with its own hot mess in Greece that threatens the entire health of the European Union. 

Uncertainty is uncomfortable and scary; we like to know what's coming around the bend before it hits us in the face, not after it has knocked us on our butts.  In spite of this angst and fear, there is cause to be hopeful.  I choose to look at what we're going to do differently, how we will be smarter and more selective, and how our values will be what will guide us more and more.  Am I just being a cockeyed-optimist?  Perhaps, but here is what I see:

1.  Uncertainty can be a motivator.  Instead of wringing their hands, some people will do whatever they can to take some control.  Instead of putting off dealing with their finances, they are determined to do something.  That may mean drawing up a budget, paying off credit card debt, setting up an IRA, getting wills and life insurance in place, increasing the emergency fund, starting an investment plan for college costs, or reviewing spending habits.  A stronger citizen bolsters the economy. Click here to read more .

Finding Financial Strength:

What are you Waiting For?

No matter how many people I speak with, or what their financial situation is I've noticed a common theme when it comes to handling money: procrastination. Now sometimes people procrastinate because they're afraid of making a mistake, and sometimes they're overwhelmed and not sure what to do, and other times it's just a case of "putting off" for tomorrow what they should do today.
 

Why all this delay? If your car was having trouble, you would get it to the shop fast. If your refrigerator died, you'd run out and buy a new one. It's simple: the immediate damage of procrastinating with your finances isn't felt until the future and seldom do you get a "bill" for what the delays cost you. But, make no mistake; failing to take control of your money is like letting your garden grow without tending to it. The garden will get overgrown, and while some things may blossom, much will be wasted. So, how can you fight this tendency? Have a plan and a time table and stick with it. Here are some tips to get you started.

1. Be honest. Take a good look at what your situation is. If you have credit card debt, how much is it? On what cards? What are the rates? If you have savings/investments, where are they (in IRAs, company-sponsored retirement plans, taxable accounts, the bank)? How are they invested? Do you have an allocation actually set in place (60% stocks/40% bonds and cash, for example)?
 

2. What do you want? In a perfect world, what would your situation look like? No debt? $50,000 saved? An Emergency Fund? A college fund? A vacation home? Your own business? Write it down, even if it seems outrageous.

3. What is holding you back? Now, look at what stands in your way. Some responses might be: "The market is crazy; I have no time to do it; we don't make enough money; or I am overwhelmed!" 
 

4. Overcome your objections. Now you need to switch hats on this one. Pretend a friend has come to you with answers to the first three questions above, and is looking for advice. Get out of personalizing the problems and look at them objectively. What would you advise? Would you suggest ways to trim the budget? Would you suggest putting aside a set amount every month? Be as helpful as you would really be if you were speaking to your best friend.  Don't forget to visit ATI Investment Consulting, Inc.'s website for calculators  to help you in planning a myriad of investment goals.

There, you have a start. You have outlined your problems, priorities and wishes. You have even given yourself an outline of steps you need to take. Now, what are you waiting for?