Being in action is the best way I can think of to avoid financial ruin. It seems like just yesterday, it was September 2003 and my husband and I got a hint of what our daughter's medical bills were going to be: nearly $2,000 a month. Our daughter, Anne, was just 20 months old at the time and was barely surviving life. I wasn't sure that she would make it to age 2, so $2,000 a month seemed like a fantastic value and our HMO was footing the bill. Within about a month if Anne's treatments we were notified that our HMO would not continue approving or paying for the treatment. So, it didn't take a rocket-scientist to figure out that we would be in extreme financial trouble in the coming months. I sprang into action with my first plan being to get our HMO plan to reverse their decision. That plan failed. And then came the next plan.
If you have not seen the FOX 5 NYC News story that ran about my daughter's health issues and our financial troubles, you can view it on my website - www.thesuperallergycookbook.com (under videos menu item on the homepage) or on www.youtube.com (use the search engine for "Super Allergy Girl"). It might actually make you feel better about your own financial situation, so you may want to take a peak at this FOX 5 NYC News piece. And in the last five years, I can say that while we have a long, long way to go financially, we have avoided declaring bankruptcy, and we have kept our sanity. Here are some of my top tips for keeping your head above water when financial times get tough:
Top 10 Tips for Avoiding Financial Ruin
1. Get a plan together on how you can decrease your expenses while increasing your income. If you think that can't be done, keep subscribing to my blog as I share more about this over time!! I'm not saying it is easy, or that it will come together quickly. But if you put your mind to it, you can figure out how to overcome your situation.
2. Sell whatever you can or whatever you have to in order to stay solvent! My husband sold his prized 1952 MG-TD a few years ago so that he could replace his 20+ year old car (with over 250,000 miles on it I might add) for a used car that was about 8 years old. My husband had owned the 1952 MG-TD since high school and had refinished it to perfection just before I met him. Do you think that it was easy to part with such a piece of his past? No! But tough times call for tough choices. We also liquidated savings, cashed in investments, and sold other items. Nothing was off-limits. The only reason we didn't sell our house, quite frankly was because we couldn't find an apartment or housing as inexpensive as our mortgage that would hold all of my daughter's special requirements. The 3 stand-up freezers and the specially ordered foods/ingredients would take up a whole room in an apartment.
3. Get your view of your own personal circumstances sorted out for yourself such that you can be inspired to make a difference in the situation instead of being overwhelmed by it. This is MUCH easier said than done! I know. I'll write more about this in a future blog. It's a topic that could span many, many blogs!
4. Stop pretending that you have money!! That means stop buying $3.50 Name-Brand greeting cards for any or every occasion. Stop giving gifts to family and friends (except for young children and ONLY your own and only on "required" occasions). And while you are at it, skip the restaurants, movies, and other types of expenses. You can live without all of these items. And consider what your children don't have to have!
5. Get on someone's "Hand-Me-Down" List and take whatever clothing they will give you!! My roommate from college, Stacey and her son Alex, have sent my two sons Alex's clothing for several years now. This has been a huge financial gift to us. Alex's clothing arrives in mint condition, and it is name brand. I've gotten clothing from my Mom and will soon be getting some from a lovely woman (Marlene) who knows I'm on the "no-frills" budget and could use that kind of help.
6. Barter or trade your services for those you need. It might not always work out that you can do this, but you'll never know if you don't try it.
7. If you've never been frugal, take this as an opportunity to study being frugal. Being frugal can be exciting and fun. Of course, it is way more fun being frugal when you don't have to be. I've been frugal for as long as I can remember. I had several jobs while I was earning my degree from Penn State University so I have a long history with making the most of what you have. There are lots of ways to stretch your money and if you have no idea how to do that, it is time to buckle down and learn them. I'll blog on this topic again in the future because I am proud of being frugal and have lots of ideas on how to stretch a dollar.
8. Ask yourself if you are looking at your situation from the correct perspective, or if you could be in denial. You could even ask close friends or mentors what their advice would be if they were in your situation. Other people may have suggestions for you that you had not thought of. I spent a lot of time doing this and then following up on the suggestions people made to me. You will never know what could come out of this if you don't ask!
9. Figure out how to stay motivated. If you are not a self-starter or self-motivator, then find resources to help you stay motivated during the hard times. I'd be happy to help you with this one!
10. Count your blessings. This is easier for some people and harder for others. Make a list of all of the things that you have to be grateful for in life. If you can't think of any, then go to your local mission and talk to someone who is just back from a mission trip. That might give you a few ideas on what you have to be grateful for.
Unfortunately we have more people who are in need of financial help now than we did five years ago for various reasons not limited to Katrina, health care issues, employment and the housing market/financial institution issues. Waiting for someone to rescue you is probably not the best idea. Hoping and praying is not bad, but I would couple a good dose of hope and prayer with a ton of diligent and thoughtful action. I didn't include asking for help in the list above, although I thought about it. People are much, much more inclined to help you if they can see that you have done everything imaginable and in your power to help yourself. So we'll start with what you can do for yourself. Sending you my positive prayers that you have abundance and joy in your life and plenty of health, happiness and prosperity.
Love,
Lisa
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