Yesterday, I receive a phone call from someone looking for feedback on whether or not it was a good time for him and his wife to purchase their first home. Always eager to have that conversation, I called him back and we begun to talk particulars regarding where he was financially and what he wanted to accomplish within the near future. Of course I shared with him how the real estate market is in a great position for someone looking to purchase... BUT the key to enjoying this opportunity is to ensure you are in the best position to enjoy the benefits of such a purchase. After speaking for approximately 20 minutes several factors popped up to suggest in their particular circumstance it would be best to outline a roadmap of preparation.
With the world economy in turmoil - Euro Unemployment - OVER 9% and Increasing, US Unemployment - OVER 9% and Increasing, stock prices and retirement plans bleeding wealth and in a perpetual negative growth cycle, Oil Prices - Sporadic, the Financial Sector - in Confusion... Banks forced to for go private ownership and accepting public funding, Banks developing artificial barriers to lending while refusing to provide credit and worst of all withdrawing credit previously promised and paid on in a timely manner. An overall lack of economic direction worldwide as nations point fingers, political leaders try to position themselves as being 'the solution' and journalist sensationalize 'the news' in an effort to increase their bottomline, ratings and to pursue their political agenda - sticking their hands out, increasing their coffers. What is the everyday person to do? Prepare. Now that you know the rules of engagement... Prepare...
ABA Chief Economist James Chessen said: "When people lose their jobs or work fewer hours, it makes it that much harder to meet their obligations. Unfortunately, we're going to see higher job losses in the next year, and I expect elevated delinquencies."
Assess Your Priorities
The Obama Plan will not get the job done. Why? Because Banks are in a key position to determine what, when, where and how. Do not expect them to do anything but look at their bottom line. Because journalist - news organizations will report what, when, where and how to support their bottom line. Because everday people lack the political pressure to enforce and agenda that will allow for effective leadership and the implementation of policies 'for the people by the people.' Your focus must be your family and your personal growth. Preparation will allow you the opportunity to purchase a home (if you do not have one); shore up your retirement fund and assessing your risk tolerance while you make educated decisions that will directly impact your future quality of life; and all-in-all reposition your priorities and wealth to work for you. Recognize when your priorities are not in sync with reality or not conducive to future happiness and change.
Develop A Plan
The focus is to reposition your priorities and wealth to work for you. If you still have a job, Maximize Your Liquidity... Renegotiate your expenses with a sole focus on your priorities. you must educate yourself and have an ubderstanding of your needs. While you may think "Now is the time to buy that new house" -- your reality versus your perception may not be realistic. Suze Orman speaks to it in so many different ways... "for lack of knowledge my people perish." EDUCATE YOURSELF -- regardless of what your position is in life, it is not over and all is not lost -- you have an opportunity to position yourself for future wealth. I enjoy when people call me and share their goals and ask my opinion on how they can achieve their goals given their circumstances. In these hard economic times the field of opportunity/the playing field is even. The ones who will be successful within the coming years will understand where they stand and develop a (steps to success) that is manageable.
Each persons goals will be different, but the steps to accomplishing those goals remain the same. While someone with a stable job and income may look like they are in a better position from the other person who just got laid off from their employment, priorities are necessary, edcucating yourself is required, a plan must be developed and you must execute one step at a time. Your plan must be:
- fluid (capable of changing based on changing circumstances);
- detailed (incorporating steps to achieve one-by-one; and
- achievable (having short term outcomes with the focus on what is most important to you will provide you the ability to see growth on a regular basis.)
You should be able to see the fruits of your sacrifice and those dreams being realized as you execute your step-by-step plan... one step closer each week/month. Ideally you want to spread out your milestones in 1 to 3 month increments.
Execute
Each decision you make, everything you do, every thought you have, every emotion you entertain is about execution. Your actions will determine your outcome. You have the power to achieve, not your circumstances. Whether you make a decision to give up or you agressively pursue change, their will be action on your part and your action (or inaction) will determine what opportunities you have in the future. There are ways to fight foreclosure, there are ways to lower your monthly payments, reduce your debts or build wealth. Through education you allow yourself the ability to execute. Now is the time to act... there are basic facts of life. Nothing stays the same, the exciting part of life is your actions will determine your future!!!
