News from Delaware Financial Literacy Institute

1) Re-focus your long-range plan. What really matters now? Once you let go of goals from the past and accept that things have changed, think long term. What are your long-range priorities now? What are your goals for yourself and the other people that matter to you - children, parents, community, etc. So often when we are in the middle of a job loss, we think about all we have or may have to give up. I say reshape the discussion. It's not giving up on things. It's re-thinking the priorities. It's not about deliberately shrinking goals; they may be even more grand than before. By acknowledging our world has changed, you may also discover some of your long-range goals also have changed.

2) Re-focus your time. Recently, a friend told me that her job search was so time-consuming she had no time to network. I suspected that she was spending hours on Internet job boards as an excuse for not reaching out. When I pushed her on this, she said her network no longer existed. She said her co-workers were her network, and now they are either laid-off, too, or aren't returning calls. I reminded her that she is much more than the title she had on her last job. She has family, neighbors and access to a larger community that she has yet to tap into. I asked if she had won the lottery instead of being laid-off what would she be doing with her time? She told me she always wanted to do non-profit work and that she loved cycling and would do a cross-country trip. I reminded her that her job search took time, but not eight hours a day. She had time to work in 10-20 hours of non-profit work per week. The work would be rewarding and create even more contacts for her network. Joining the local cycling club would allow her to train, stay fit, and meet new people. You never know where that next job will come from, but it often comes from personal referrals not a classified ad or Internet job board. Those tools are good, but the pros tell me to spend no more than 10% of your time looking through ads to find a job. Networking - which is simply reaching out to those in your circle - is the best way to get that job.

3) Re-focus your spending. What really matters now? Do you need the cable TV and internet? Maybe just one will do. Look at your spending. Where were you wasteful because you were so busy, you gave yourself permission to be wasteful? What can you do to lower bills or bring in more income. Things like conserving energy can lead to a very quick return on your investment in any season. Adjusting the thermostat or being diligent about turning off lights pays you back immediately. Take a look at things like your auto insurance. A woman I know was spending a fortune to insure a 13-year-old car. Good liability was important - but why pay to insure a car when your deductable is more than the car is worth? Shop around and make sure you have the right coverage. I am not saying skimp here, I am saying don't be wasteful. Spend what you need and no more. Re-think your cell phone plan. To do this right you need to take a methodical and hard look at your spending. I would take a look at every dollar spent over the last 3 months; you could list a lot of the wasteful stuff you without doing this. But, every time I do this exercise I find new ways to save. It's tedious and it pays off. Do it. You will also know exactly how much money you need to earn to stay afloat. Guessing isn't good enough. If you have to negotiate a salary for your next job, it will be helpful to know what you really need to make, rather than what your ego needs you to make.