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Know Where You Stand

Written by: James Dicks

Article Overview: James Dicks discusses the process of recovery once a person loses a job

Free Download - The New Economy – Weak and Getting Weaker By James Dicks
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Know Where You Stand

One thing I have noticed as our economy grows weaker is that people, who are unfortunately losing their jobs, have the impression that they need to solve their employment problem right away.

I know what you are thinking; of course you need to solve the problem as fast as possible, especially if you are the one who just lost your job and the one who the family relies upon to bring in the money. But, what you really need to do is sit back and take a very long look at your finances. Then examine your goals, short term and long term and adjust these goals now that your financial life has been turned upside down.

It’s definitely not the time to panic; sit down and discuss the issue with the rest of your family, and then begin a plan of action. You do not have to start tomorrow the same way you have started the days before; meaning working the same job for the same pay and the same benefits. In fact, this may be the professional and personal change you have been looking for but were too afraid to make the move in the past.

Some people become so complacent in their everyday lives that they can’t make a change and get stuck in a rut. As my favorite saying goes, if you always do what you have always done then you always get what you have always gotten.

If you own a home then look at that expense first as it is your largest. Call the lender and let them know you are having difficult times, be proactive. You can ask them to give you an extension on your mortgage. I personally know of banks that are giving six months extensions, no payments for six months. Banks are lowering interest rates and modifying loans. In the end, if they don’t, then they will end up with the house.

I preach financial responsibility and we all should practice it, but what happens when the other side, in this case the government, fails with their financial responsibility? You are now left on your own to dig out from a nasty situation that was no fault of your own – recent financial events like the housing market crash or the weak job market.

You may want to think about your options and consider refinancing your biggest expenses, such as your house. What do you do if you are upside down on your house by 50% or more? Is it something you keep paying for the next 10 years to get back to even? It just doesn’t seem fair if the person next door stops paying their mortgage only to buy the house across the street for 70 percent less.

These are some of the tough choices you will have to face, but the overall burden of financial responsibility is all of ours. To further help you in this financial crisis, call all of your creditors and ask them to work with you; try to get extensions or reduce your payments and interest.

Many of them will tell you NO. They’ll tell you they can’t help you or they can’t do it. But don’t take that lying down; it is the squeaky wheel that gets the grease and it’s your turn to be the loudest. You may have to call your bank five times a week, literally, to find someone that will magically help you out and get you to the right place. Just be sincere, share your story and the solution will come. I cannot tell you how many times in life I have been denied and turned down only to go to the next step, which seemed liked the last, to finally hear the words, “Sure, I can help you.”

Go the extra mile and believe in yourself and trust in what you are trying to accomplish. You don’t have to land on your feet the very next day. At this point, you need to determine what you really need to survive. How much money will you need to get you through every month? Will your unemployment get you there? Will holding off your mortgage get you there? Determine what it will take for you to actually get by each month. Because this is the real number that you need, this is the number that will take you to the place, financially, where you are supposed to be.

Once you figure what you need to make it, which will no doubt be lower than you imagine, you’ll sleep better at night and wake up with a better attitude. Then just start building from that point. Remember, never give up! This situation will pass and you will more than likely be better off for this current experience. I know this is true because I’ve been where you are right now. Just keep moving forward and things will start changing for the best.

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Home > Personal-Finance > James Dicks > Know Where You Stand
Article Tags: economy, goals, james dicks, lender, premieretrade

About the Author: James Dicks
RSS for James's articles - Visit James's website

James Dicks has been an educator on the subject of Real Estate, Stocks, Options, the Foreign Exchange Market and empowering investors to handle their own investments. James has authored numerous financial books including his most recent book Forext Trading Secrets published by McGraw-Hill as well as FOREX Made Easy Six Ways to Trade the Dollar and Operation Financial Freedom.

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Fundraising for school activities such as sports, clubs Fundraising for school activities such as sports, clubs - About a month ago, there was a two week time span when I entered my local Walmart, and saw a bunch of kids (with an adult supervisor) stationed outside each door asking for donations for their track team, or their swim team. (Never saw one for a debating or science club, but they may have been out there.) They weren't selling anything - no cookies, no candybars - just asking for donations. And I felt sorry for 'em because most people were just walking on by, so I contributed a dollar each time. But it got me to thinking.... was this really good training for the younger generation? Stand outside stores 'guilting' people into contributing to their wants, but without giving anything in return (ie those cookies or candybars.) And usually every weekend I drive by people standing by the side of the road holding up signs advertising car washes, again presumably sponsored by an organization in order to earn money. And I remember reading somewhere that these types of events rarely do make money. (Especially when any signs pointing people to them are usually so small and illegible that drivers can't even read them and drive on by in frustration...) What activities can kids do to earn money for their school, that isn't equivalent to begging? Moving lawns, dog walking... what? Should they form an entrepreneurial group and do something that way?


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