…….. it may not be as bad as you imagined.
There seems to be a lot of fear surrounding money and none more so than when your income is threatened. My blog this week contains two events that have come up quite a few times in the last 12 months that describe this subject beautifully.
The first one I will describe is a single lady who had been told that her job was up for a restructure and that she would see a considerable drop in her yearly income. Her employer would hold her present wage for 12 months but then it would reduce to the lesser amount after the 12 months was up.
The second is a couple who found out that they were going to be expecting a new addition to their family and that would mean that they would be on a reduced income for the 12 months following the birth as the mother to be wanted to take that length of time off to be with the new baby.
In both instances the immediate reaction was fear. Fear that it would be impossible to cope on a reduced income. Fear that the bills would pile up. Fear that they would have to go into debt. Fear that they would have to let go of their wealth creation plans. But what I have “preached” over the years is that money is a tool that we are given to use to the best of our ability and I have seen money in abundance used well and money in shortage used well but I have also seen the opposite – the abundance of money used badly and the shortage of money also used badly. So I know that it is possible to do well on a little and well on a lot as long as you understand your expenses and what you value.
So armed with this, we immediately reduced the monthly budgeted income to what would be the new income once the scheduled event took place. Instead of imagining what was going to happen, we decided to actually find out.
The single lady discovered that she could afford to live on a reduced income, support her investments and continue to save. The mother to be discovered that what they saved by living on less during her pregnancy – was enough to supplement their income when they needed more than the reduced income after the birth. In both instances they faced their fears and were courageous enough to test themselves and discovered that their fears were unwarranted. Sure they had to be careful and it took some making of mistakes to fully understand the ‘how to” but the result was success not failure. Trying and being prepared to fail but trying with the focus on being successful is the best slayer of that giant called “Fear” and the result is very empowering.
So if you have an event or circumstance that is causing you fear – don’t lie down and imagine the worst – face your fears and find out for sure what it will mean – you may be surprised!