The message is that about 1 in 2 people fear losing their job.
Let’s look at how this translates into a savings rate from an international perspective.
If Americans are not saving enough what other critical characteristics or attributes affect our financial lives?The takeaway is how critical it is to preserve our health and relationshipsHow can we change this?
This can be the natural response in dealing with financial issues and pressures, but there is a better way!
Get Christian Counsel as RequiredProverbs 15:22, 16:3, Eccl. 4:9-12
Student loans for example can be deferred due to a hardship case.
Get rid of cable and all unnecessary expenditures.Shop at Aldi and Shop-n-SaveHang out at the library, zoo and look for free entertainment opportunities
Meet with a Money Map Coach
Career Forum Presentation July 8, 2010
Financial Fitnessin a time of job loss or career transition<br />EFree Career Forum Meeting<br />July 8, 2010<br />Michael Meyer<br />EFree & Crown Money Map Coach<br />
Summary<br />Fundamental Truths<br />The Harsh reality of work<br />ARM yourself for unemployment or underemployment<br />Assess Current Situation<br />Identify Risk<br />Risk Mitigation<br />
Truths<br />Believers experience periods of financial abundance and can lack financial prosperity<br />Job 1:8-21, Gen. 37:23-28, 39:7-20, Joshua 1:8<br />2 Corinthians 11:23-37 Ps. 73:1-20<br />God loves us.<br />Jn. 3:16, Luke 12:7, 12:27-31<br />God wants us to work<br />Prov. 10:4-5, 6:9-11, 12:11, 12:24, 27 14:23<br />I Thess. 4:11-12<br />
The Harsh Reality of Work<br />More than half of people (56%) are concerned about losing their job in the next year.<br />Americans surveyed (50%) say they could meet their financial obligations for one month<br />Americans say (59%) they would be somewhat or very concerned about filing for bankruptcy if they lost their job.<br />Mass affluent Americans (53%) identify themselves at risk if they were to lose their job.<br />Americans (75%) have been touched by unemployment over the last year.<br />20% have lost a job and 55% have a friend, relative or neighbor that has lost a job due to the financial crisis.<br />The 2009 MetLife Study of the American Dream<br />
How Household Savings Stack Up in Asia, the West and Latin America<br />Bloomberg Businessweek June 14- June 20, 2010, Global Economics<br />
Bankruptcies<br />Other reasons<br />Bad investment<br />Crime victim<br />Credit card overspending<br />Natural disaster<br />Other explanation<br />No explanation<br />“Big Three” Reasons<br />Job Loss<br />Medical problems<br />Divorce or separation<br />Source: 2001 Bankruptcy Project<br />The Two Income Trap Why Middle Class Mothers and Fathers are Going Broke, Elizabeth Warren, 2003 <br />
Assess Current Financial Position<br />Seek God, pray for wisdom and guidance. Prov. 8:10-11, 18-19, 16:16, Eccl.7:12, James 1:5, 5:13<br />Start/continue a daily time with God, journal.<br />Create a “List of worries/fears and pray over them”.<br />Define your monthly financial needs.<br />Define your available savings and contingency fund/s.<br />Define your assets and liabilities. <br />Define the time to exhaust funds/assets. Luke 14:28<br />Prioritize which liabilities must be paid, deferred, addressed.<br />
Risk Identification<br />Define bills that must be paid and bills that can be deferred.<br />Medical & dental insurance coverage.<br />Education for children (private school), approaching the institution for scholarships or moving children to public school<br />Child care/coverage options if required.<br />
Mitigate the Risk<br />Ask your employer for assistance in finding a new position.<br />Ask for severance pay if it is not offered.<br />Immediately move to a “crisis spending plan”.<br />Commit to live on income<br />Commit to incurring no debt<br />Regularly communicate with your spouse.<br />Regularly communicate with your church.<br />Eliminate all discretionary spending and delay any unnecessary spending.<br />
A Spending Plan“Simple and Complex Truth”<br />“We never lived on a budget. We tithe, we save and we live on the rest, it is as simple as that ”<br />Chuck Cromer<br />West Springs Elder <br />“The main thing, the primary thing that keeps us from living up to a high level of commendable stewardship is usually not because we don't understand what needs to be done. We know what needs to be done, …….we don't do it. We don't execute the game plan. Why not? Because the game plan requires us to master, ……our old natures. The nature that wants what it wants, puts self-gratification at the center of the decision-making process, that abhors sacrifice.” <br />Sound Mind Investing Weekly Update August 19, 2009<br />
Mitigate the Risk(continued)<br />Take care of yourself physically and mentally<br />Approach lenders and creditors<br />Access the contingency fund if available<br />Sell “stuff” – Craig’s List, Ebay, Garage Sale<br />Sell assets Roth IRA’s , 401-K’s (tax deferred items as last resort).<br />Network with various people<br />Is spouse working can they add hours or benefits?<br />
Money Map Coaching Process<br />The earth is the Lord’s and everything in it<br />The rich rule over the poor and the borrower is servant to the lender<br />I have learned the secret of being content in any and every situation…. I can do everything through him who gives me strength<br />It is more blessed to give than to receive.<br />Train up a child in the way he should go and when he is old he shall not turn from it.<br />
Path Forward<br />Unemployed - Move to crisis spending plan, take care of needs, network to new position<br />Employed – prepare for the worst, make your way down the “Money Map”<br />Transition – Develop a plan, work your plan ensure an adequate contingency plan and fund is in place to financially support you and your family.<br />