Personal Financial Crisis – Personal Spiritual Solutions

The financial markets are extremely uncertain. Last week we had the worst week in DOW’s history and Monday we saw the greatest gains ever. People are losing their homes due to foreclosure or the value of their house is now less than what is owed on it. Layoffs are on the rise. Business owners are losing revenue as spending slows down and it is more difficult to get the credit they need to meet their expenses and their payroll. Health care costs continue to bankrupt families and the cost of gasoline at pump remains high. Many retirees find themselves back at work or looking for a job now. Many churches, community activist groups and non-profit organizations are in danger of receiving less funding from corporations and families, ultimate hurts those that need their assistance.

In times like these, people look towards spirituality for guidance. The cornerstones of all spiritual practices can be used as a model for solving today’s financial problems. Here are some of the universal lessons we should remember to help us get through this assault on our personal assets.

Determine the Principles That Will Guide Your Behavior

Change is a way of life, but fast change is the way of America. All aspects of our personal finances are in flux. While we do have some influence, we never control being laid off, the buying decisions of customers, the rise and fall of the stock market, the collapse of banks, and the business dealings of financial institutions. Uncertainty is built into our financial systems, just as uncertainty is built into each of our tomorrows. You do control the guiding principles that you will choose to live by. As a Spiritual Individual, you’ve chosen to live honestly, have compassion for others, and live life with the purpose you’ve discovered. Similarly, you can determine the principles that will guide your financial lives.

While everyone is feeling the pinch this financial market is causing, we all have unique circumstances, and therefore unique choices to make. If you are planning to retire in 20 years, the principles that will guide your investment decisions will be very different than if you are planning to retire in the next 2 – 5 years. If you currently don’t have a job, the jobs you will be willing to take to support your family will be very different than if you had a job today and were looking. The decisions you will make regarding your child’s college savings will be vastly different if they were ready to go to college this year, or if you have 10 more years to save and invest.

Determine your long-term goals. Set guiding principles for how you will make decisions when times are good and when times are bad. When favorable conditions appear that are consistent with your long-term goals, execute your plan. Allow these principles to guide your savings and investment behavior.

Present Minded Focus

Keep your mind focus on the moment. We should learn the lessons from our past experiences and be mindful of possible future events. However, our focus should remain in the here and now. Last week, the worst week on Wallstreet ever is now in the past. Whatever happened last week happened. Mulling over it will not change what took place. Becoming overly worried about what may happen tomorrow is also not helpful. Worry only provides the illusion of doing something while absolving you from taking real action.

Instead of living in the past or worrying about the future, live in the present. Do you have enough money to provide food, water, clothes, a place to live, and basic utilities for yourself and your family? Do you have access to medical care if you need it? Do you have a source of income that will allow you to continue to do these things?

Spending your time thinking about what you lost or gained last week is wasting your precious present. Assess your situation today and determine what you need to do to make sure you and your family pull through this financial turmoil healthy and prepared to take advantage of new opportunities as they arise. The future will take care of itself through your care of the present.

Simplify

It's time to get back to basics. Too many of us are living 20% or more above our means, rather than living 20% below our income and saving or investing the rest for our long term plans. We’ve watched the excess that many of us were living with reduce as our incomes and portfolios reduced. We all need to be more mindful of spending our hard earned money on necessities, while reconsidering some of the other things we buy.

If your pocketbook is shrinking, consider giving up a few things until they can comfortably fit into your lives again. Texting, music downloads, CDs and ringtones add up over time. Instead of expensive label clothing, consider shopping for sales, or purchasing brands that are less luxurious, but that ensure you and your family are clothed. Put off getting that new cell phone, car, furniture or shoes if what you have currently will due for now. Make eating at home fun instead of going out as often as you once did.

In times of plenty, those things make nice additions to your life, but they are not necessities. There is no shame in making sure you and your family have your needs met. Your first and constant care is for you and your family’s well being. Anything outside of that is extra that can be reduced or eliminated.

Let Go of Guilt and Blame

Guilt is a useless emotions which robs you of the confidence needed to make sound decisions today. Don’t waste your time feeling guilty about past decisions or your current circumstances. Everything happens for a reason that ultimately benefits us, even if we can’t see that benefit today. Also, don’t waste your time blaming others for your current circumstances. Until you accept responsibility (response-ability) for all of it, you can’t change any of it.

Guilt and blame are great ways to make sure that you remain exactly where you are. Use that energy instead to determine where you are, decide where you want to go long term, and chart your path to get there from where you are today. Keep in mind that you made the best decisions you could with what you knew at the time. Now, make new decisions based on what you know now. Leave guilt and blame behind you find your way through this economic nightmare.

Appreciatio

It’s sometimes difficult to appreciate anything when you feel like you are losing everything. However, it is in appreciation that we understand what we truly have to be thankful for. Right now, there are many people that have it far worse than you do. If you lost great value in your 401(k), consider the person that just lost their job. If you lost your job, consider the person that was just evicted from their home due to foreclosure. If you just lost your home, consider the family that can’t afford the medical care needed to keep a family member alive that has a terminal illness.

The most precious things in life have no price tag. The love of family, the smile of a new born baby, witnessing the good deeds of another, and your personal connection with spirituality are just a few. Put your mind on the good things you have. They are the things no one can ever take away from you. That’s the real treasure in your life.

Prayer and Meditatio

It wouldn’t be spirituality unless we talked about prayer and meditation. They are really the same thing, which is connection to the source of your spiritual power (whether you call that God, Allah, Krishna, Superconscious, Budhha-mind, Tao, etc). Prayer changes things and reminds us that through our connection with spirit, we are never alone. It is through the universal principles discussed in this newsletter that we find our model for living, problem solving, and ultimately happiness.

When in doubt or full of fear, sit still, connect, and listen. When problems come your way, the solutions usually come in your quiet non-thinking moments when you are more apt to listen to them. So, create more of those quiet times in your mind. Remain connected regardless of good times or bad times, and allow yourself to be lead by an intelligence that goes way beyond how smart we think we are.