As something of a surprise to economists during this pandemic, households, particularly the middle-income and affluent, have paid down debt and boosted their savings, giving them a financial cushion. Usually, during a recession, household finances weaken. Check out this WSJ article for more details (https://www.wsj.com/articles/coronavirus-pandemic-putting-damper-on-holiday-shopping-season-11603029601). If this doesn’t describe your situation, then what is YOUR Recession plan?
As the great Dr. Phil once said, “Willpower is a myth. Risk is not about willpower. It’s about planning and programming. New Year’s resolutions are all about willpower. The planning and programming is the difference between reckless and reasonable risk.”
Most people believe that if they had enough willpower, they could do anything, and when they fail, they feel like there was something wrong with them, that they didn’t have enough “willpower.” It drives me crazy because, while willpower is useful, it’s really only a short-term boost of motivation. It’s impossible to keep that level of willpower for a long period of time and so people set themselves up for failure, by thinking they “just need to have enough willpower.” The truth is, that unless you make a plan, and then build a habit by sticking to the plan, willpower is NOT enough. Willpower can help you get started, can help you implement your plan, but it’s really perseverance, determination, and changing that plan into a habit that becomes your new normal that really allows you to succeed. Having support from the people around you also makes sticking to your plan so much more doable. This is true no matter what you want to do in life, from getting more fit, to eating healthier, to becoming more financially free. Willpower can get you started, but Success requires a plan. And YOU need a recession plan.
Sign up for a FREE consultation here (https://www.successoptionsgroup.com/consult) and let’s get started on YOUR recession plan.