Fending Off Financial Fears

With unemployment comes a whole host of other fears, including extreme financial ones. While I was figuring out what was next, how would I pay the bills? Of course, my mind jumped immediately to the worst case scenario in the financial world: bankruptcy, losing my place to live, losing my car, and on and on. Once my mind hopped on this train, it was hard to stop it. Occasionally, I still hop back on it. It's never fun. You may be familiar with this feeling; I know that there are many American families struggling with it right now.

To combat my fear of financial insecurity, I jotted down a quick plan. My first numbers just wouldn't work, so I had to cut back more. With Obama's stimulus plan, things looked slightly less bleak, at least for awhile. Once I had a plan for several months, I started to future-trip. What about six months from now? What about next year? How would I pay for anything? Freak-out #573.

My spending habits changed drastically, along with millions of other Americans who are now similarly situated. I ate out less and cooked at home more. It made a small difference. I'd lived outside of my means before, and this habit could catch up with me quickly, if I didn't intentionally proceed with care.

The bottom line was this: I could remain as I was and freak out, or I could change. I opted for the latter and made a plan that would allow me to get through six or so months. I mapped out my prior spending habits and cut them in half, budgeting for necessities and cutting out the excess (of which there was not much, but certainly some). I made some small adjustments that ultimately added up, like cutting cable altogether and relying on the library for all of my books, rather than purchasing new, or even used ones. I paid one bill at a time.

I made a list of everything that I HAD, not a list of everything that I didn't (which I used to). In fact, I make a list every morning, which reminds me of how many wonderful aspects there are to life. When I was working, I often overlooked these, too busy to take the time to mark them down or remember, always aiming for more, more, more.

As I scaled back, I began to see a path through my financial fears. It started with becoming even more educated about my current financial status and the state of our economy (with the help of resources from the likes of Suze Orman). Continuing on this quest, taking action to become educated and put my financial plan into action have cut down on the fear that may crop up.

Part of the economic downturn seems to be a collective call to us all to reassess our relationships with money and spending. For me, I often don't pay attention and change until I am forced to. Despite the panic, this is an opportunity to reassess and reshape financial goals and patterns, alongside our government and corporations.

With a slightly different mindset, I was ready to take on different issues, such as what to do with my life next!