Financial Pep Talk ('cause you might need one right now)

Remember Eeyore? You know, the pessimistic, depressed, grey donkey from the “Winnie the Pooh” stories? (If you do, you’re probably trying to impersonate Eeyore’s voice from the Disney cartoons, aren’t you?) From Eeyore’s perspective, things were always heading for disaster. Even when things were looking up, Eeyore was sure that it was only setting the stage for something worse.

As you read the financial headlines, there are moments where you might wonder if everyone writing or speaking about financial topics had suddenly become Eeyores. All the bad news means only more bad news: rising oil prices, dropping stock market values, defaulting mortgages, declining earnings, downsizing companies and outsourcing jobs. As Eeyore might say, “Oh my, it’s all bad news. ”When the bad news starts to cascade, it seems the conditioned response is to adopt a bunker mentality – pull back, pull out and hole up. Cut your losses, cut your expenses, cut up your credit cards. But maybe now is not the time to cut and run.

Read this excerpt from “Killing Sacred Cows” by Garrett Gunderson:

I’m constantly amazed at how much financial advice I hear boils down to cutting expenses. Now, am I saying that cutting expenses is inherently bad, or that it is not useful in the proper context? No. But to enjoy better results, instead of asking, “How can I cut my expenses” we should ask “How can I be the most productive in this moment?”

How can I be most productive in this moment? Isn’t that a good question on which to base your financial decisions?

Much of the macro-level economic fallout is the result of poor decisions by institutions and large groups of individuals. But if you’ve been making good financial decisions, it’s possible you are well-positioned to take on some outstanding opportunities – at very favorable prices.

If that’s the case, now is the time to act, not pull back. Even if some of your financial
history isn’t that great, are your problems going to be solved simply by tightening your
belt? Put it this way – what’s going to pay off that home-equity loan faster – an extra
$100 each month, or a $1,000 increase in monthly income? As Gunderson says, “we
should produce more than we consume, and the best way to do that is usually to focus
more on increasing our production as opposed to focusing on decreasing our consumption.”

How can I be most productive in this moment?
When you first process that question, you may think of it primarily in terms of generating more income through your work, business, or investment opportunities that you already know about. But answering the question doesn’t have to be a solo project. Now might be the ideal time to ask the financial professionals that serve you for their insights as well.

An old Hebrew proverb says there is wisdom in a multitude of counselors. So it seems logical that having two or three other people helping you become more productive can only work to your benefit.

The economic bad news you hear and read shouldn’t be dismissed; some things are not going well, some companies are in trouble, and some people are struggling. But while economic bad news may give you information to adjust the specifics of your financial circumstances, it shouldn’t change your outlook.

Whatever the situation, the best response is:
How can I be most productive in this moment?

“PRODUCTIVITY TRUMPS ACCOUNTING”