I was meeting my financial goals until something out of my control happened. Most of us have said this to ourselves at some point. Life, and our wallets, are going to be full of both good and bad experiences. We have the power to take our financial experience from feeling like we’ve been hit with a tidal wave to feeling more like surfing it. Live life on purpose. We can’t be financially prepared for everything, but we can be as financially prepared as possible or at least more often.
To do that, we need to live within our means and do our best every day. We need to practice choosing how we react to life’s financial experiences. We can’t control the world or anyone in it but we can learn to choose to respond to it in a way that we can be content with. See opportunity even in the hard times. Being as financially prepared as possible helps bring stability during these inevitable experiences. It helps make it easier to see opportunities and suffer less during financial losses. Check out the below experiences. Would you rather choose the left-column or right-column experience?
| Left | Right |
| My car broke down. I had to get it fixed to get to work, and now I can barely pay rent. I thought I could afford this new car with how much of a loan I got approved for. | My car broke down. I’m so happy I bought a cost-effective car and budgeted for vehicle maintenance and repairs. It feels good to be able to take care of things. I’ll have it fixed and safe to drive on my trip next week. |
| My electric bill is due and is way higher than expected. I live paycheck to paycheck. It is so stressful just living. I try to escape by going out whenever I can afford it. I have to do something to be able to deal with this constant struggle. | My electric bill is due and is way higher than expected. It’s a good thing I started skipping some nights out and now have a few months of expenses saved up so I can focus my time elsewhere. I’ve been focusing my energy on my health and am starting to feel a lot better than I used to. I’ve been learning some things about myself and I’ll be able to make better choices going forward now that I understand more. |
| I was just in a car accident. It wasn’t even my fault. I could lose everything because I need to take time off work to heal. I just got a new job after the last company I worked for closed and I’m afraid they’ll fire me since I am new. I can’t afford my rent without a paycheck. How am I supposed to get better when I am so stressed? | I was just in a car accident. I volunteered for extra projects at work last year to grow my career. The business closed, but what I learned putting in the extra effort gave me skills to get a lucrative job after. It allowed me to save an emergency fund and afford better medical insurance. Now I can focus on healing my body. |
| I needed dental work. The pain got so bad I couldn’t put it off anymore. I had to take out a personal loan and I’m paying interest on necessities I can’t afford. I just keep sinking further into debt. | I needed dental work. I saved a lot of money on it with my Health Savings Account. I’ve been packing a simple lunch for work for the last few years so I could put a little into it each month. A few bucks a week wasn’t much, but it added up over time. I’m glad I was able to afford to see a dentist right away. I can focus better without a toothache. |
| I lost my job. They let go of half the team. I showed up on time every day, I did my job, and I didn’t deserve this. I did everything that was asked of me and it got me nowhere. They gave me no warning so I am not prepared for a job loss. I am going to need to uproot my entire life, move, and sell my car. How could they do this? | I lost my job. They let go of half the team. I am so glad I have been learning new career skills after work. The company wasn’t big enough for me to advance there, but it added experience that will be great for my resume. I’m going to focus on finding a company where there is room to advance. I’ve been putting a little money away each month for emergencies by cutting back on unneeded purchases. Now I have some time and I know I will find a great new employer where I can keep building my career. |
| I’ll lose my job if I don’t get this project done. I’m stuck doing this boring job. I can’t apply for a new one because if they find out I’m looking, they’ll fire me. I’ve seen them do it. Then I won’t be able to pay my bills. They’re monsters. | I’ll lose my job if I don’t get this project done. I’ll get it done but it’s a struggle because I don’t like this field of work. It inspired me to search for a new career and I think I’ve found it. I’ve been volunteering for some side work to build experience. I have also been building savings. For the last six months, I cut my grocery bill in half by learning how to cook more cost-effectively. Now I am ready to start my new career. If they fire me for looking for a new job, I’ll be prepared since I have enough saved. |
| My employer is requiring me to do something I don’t believe in. I’ll be fired if I don’t comply. I have a family to take care of. I have responsibilities and mouths to feed. I have to make sacrifices to provide. | My employer is requiring me to do something I don’t believe in. I am going to say no. I want my family to know I think it’s important to stand for what I believe in. Sure, I may take a pay cut, but I’ll also have more time with my family. We’ve spent years living within our means so we could become debt free. Now our bills are small. If they fire me, it won’t make a big difference to our lifestyle. It may make it better. This could be the push I needed to leave this awful employer and go after something more meaningful. |
| If I stop now, I’ll lose money. I built this business. I am not about to lose money on it by selling now. I’ll need to weather this economic storm and then grow this business for at least another five years. I don’t want to. I am tired of running it. But I’ve put everything into this. I am not going to let the lifestyle I’ve worked hard to earn crumble. | If I stop now, I’ll lose money. But the point of building this business was to have the power and freedom to choose. I think selling this business now will let me go after something else that means more to me at this stage in my life. I’ve earned that choice. I have been wise with my finances. I’ve saved, diversified, and am financially independent. I am ready to experience something new. |
| I feel like I have nothing to show or offer. It didn’t matter how hard I worked. Why even try? I don’t feel anything anymore. I am giving up because nothing I do works or gets me anywhere anyway. | I feel like I have nothing to show or offer. I have experienced a lot and am so exhausted I feel empty. However, I have learned a lot too, even if it was how to just survive. I am going to get back up even if I don’t feel like I have a reason. Getting back up is the best I can do right now, and I know that is ok. |
Think of your experiences. Was there something you went through? How did you react? Do you wish you were able to respond differently? How so? If that response wasn’t possible then, is there something you can do now that will afford you to make a different choice in the future?
Being financially educated on both an intellectual and emotional level is useful. Understanding how to choose to interact with money keeps it from taking over your life. Money can be powerful because it is exchanged for many things we need and want. Learn how to make it work for you.