Observe what’s blowing in the wind lately? A range of economic factors and change. The winds of the future are becoming the winds of now. The past year conditions are shifting in the economy along with a raging war in Europe.
Here is the thing, even economists who make a living studying this stuff cannot predict a depression or recession. Yet, everyone is talking about the possibility of one soon, if it is not here already. No one knows for sure. Professionals can only confirm its existence after they have the statistics from the past months and review a trend. That is why no one used the term recession in 2007 or early 2008 – The numbers weren’t in yet. Yet, many people felt the turn in their homes, loss of homes or jobs by then.
Inflation increased shockingly fast and has now leveled off. Who can help being complacent? Yet, even when picking up staples at the grocery store it is hard not to notice the small increase in prices. Blue Cross/BlueShield and other insurers been approved for significant price increases. Is there more to come?
There are so many economic issues to consider including the trends and cycles witnessed in the past.
As global uncertainty surround us, this does not stand alone as a symbol of potential economic change. Combined with the other factors fluctuating, we should at least pause to rethink and revisit our lifestyle.
Whatever the coming school year brings, business as usual is not expected. Expect the unexpected. Be ready with cash to take care of yourself. A strong mental fortitude to weather whatever is going on in the outside world is essential. A little forewarning is critical.
My point is not to instill fear, but rather action and positive steps to take care of yourself. I guarantee that I do not know what will happen in the next year. Yet, I know from experience that most people get complacent and expect the same over and over again. Then, act surprised when things change. That happened in 2000 right when the tech bubble bust. Then again, in 2008 with the housing crisis. The only thing we know is that life changes. We do not know when. Read the winds and pay attention.
So now is the time to reconfigure your finances. A saying I have heard over the years but do not know where it originated, describes how to think about this potential change:
“Hope for the Best & Tie up your horse.”
Your “horse” is your personal world. We always have control over that piece of life.
So I leave you with a suggestion to make a different choice this month to reign in your horses.
Go do one thing differently this month: Pay off some debt, save some extra money, learn a new skill. These things are what you can do to take care of yourself and your family no matter what is blowing in the wind.