What NOT to do When Money Is Tight – Jerry Fetta
Growing up, for me, money was ALWAYS tight. We did not live paycheck to paycheck. The truth is, we often ran out of money well before paychecks arrived. Paycheck to paycheck would have been an improvement because at least the money would have lasted a few days longer. I recall going to the local food bank waiting in line to choose which crate of expired food we would choose for the week. In the moment I never felt like we were struggling economically because my parents always made sure we had something. We never went without, but that sometimes meant we were drinking spoiled milk, eating food that had patches of mold on it, and rationing what we did have to make it last. Looking back, I have been able to embrace my past, and the story many of us grew up with, to pinpoint what to do and what not to do when money is tight.
1. Do not go into a mental recession. Our physical universe can be entirely different than our mental universe. Our thoughts create our reality rather than our reality creating our thoughts. But the hard truth is that we have the power to reverse this order. Often times we become reactive to our environments and instead of controlling our thinking we allow our thinking to become victim to what is going on around us. I call this a mental recession. The only thing worse than being in an economic recession is agreeing with it and going into a mental recession. This is evident in economic booms because even though an entire country can be prospering, there are still pockets of people who are still struggling. That is because they’ve gone into a mental recession. Do not think about things like how you don’t have enough money, or you don’t know how you’re going to cover the bills, or how you can’t go out and enjoy nice things. That is mental agreement and you’ll never fix your economic condition by agreeing with your current state. When you’re in an economic recession you do need to confront it for what it is, but then you must agree that you will get out, and you must agree to lead with positive thoughts and actions.
2. Do not cut funding to your own well-being. Look at yourself as a company. Now with that view, what would happen to a company if they began cutting investments that kept the company healthy and functioning? It would shrink and eventually become non-existent. We do this all to easily with ourselves though. When I meet with clients that are struggling financially the main expenses that are cut are expenses that strengthen and benefit their own well-being. For example, many of them start eating sub-par food selections. They opt for the cheaper groceries. This simple, well-intentioned, budgeting “hack” directly attacks our current energy levels, puts us at health risk for things like heart disease, cancer, diabetes, etc., and it lowers our self-respect because we know we are doing ourselves and our families a disservice with a tactic like this. You need to maintain and even increase spending on things that strengthen your personal wellbeing. Buy good, organic groceries. Go to the gym. Have a family night. Go out and meet people who can provide you with opportunities. Invest in education. Buy books, audios, go to courses, and gain knowledge. Change your environment even temporarily. For short spurts, go to the local mountains or the beach. Change your environment to something that inspires you. These things all cost money and they all pay off because you are your best investment.
3. Keep your monetary velocity up! You might be asking what this means. Monetary velocity is a measurement of how quickly money is exchanged from one terminal to the next. Essentially it is the speed of how quickly money changes hands. A high monetary velocity is often indicative and even predictive of a thriving economy. Really monetary velocity is a fear index. When fear and uncertainty are low, money exchanges hands quickly. When fear and uncertainty are high, money exchanges hands slowly. On the news, when money exchanges quickly, it’s called a boom or expansion. When money exchanges slowly it is called a recession or depression. So what am I telling you? Exchange money (on the right investments) quickly and frequently. This expands your economy. When you exchange more with others, others will exchange more with you. It’s just a matter of time. When I began my business, I employed this principle. In fact, I was even willing to go into debt creating these frequent and rapid exchanges because I knew it was only a matter of time before my inflow became greater than my outflow. Cover your base expenses and do not hesitate with them. You need healthy food, you need a roof over your head, you need transportation, and you need clothing. Be willing to spend on these things as they’re needed and don’t try to suppress them. Be willing to invest in your wellbeing, your education, and your environment. It will pay off.
I realize this information flies in the face of everything you’ve been taught. If you’ve follow me for more than a few weeks you will realize that most of what I teach has that quality. Let’s face it though, what you’ve been doing is not working. If it was you’d be better off financially. Our entire nation is operating economically on principles that are either outdated, or never worked in the first place and were propagated at our expense.
My system works. In my first two meetings with clients on average we are able to lower their life insurance, health insurance, & investment costs by 25%, guarantee an increase in their annual savings rate, and secure an 8-10% annual interest rate for them on cash flowing investments. Click here to change the way you operate with your finances.
Own Your Potential!
Jerry Fetta is a husband, son of Yahweh, Entrepreneur and owner of 5 privately held businesses. Jerry lives in Alaska with his wife and 2 dogs. His no-nonsense approach to business, finances, and life speaks truth and provides clarity to his clients and followers. His personal mission in life is to empower millions of leaders to own their God-given, ultimate potential.