Epic Fail or New Beginning?

If you’ve ever had to start over, then you know it can be more than a little challenging. In fact, it can be downright overwhelming. You’ve taken steps to ensure that you’re prepared for life’s little surprises, but when all those little setbacks turn into one huge roadblock, where do you turn?

Which direction do you take?

Depending on why you’re starting over and what you’re trying to accomplish, deciding where to start can be as simple as determining what your priorities are. My “aha” moment came when I realized that I had poured a significant amount of energy (not to mention every dime of my Teacher Retirement System savings) into getting my dream business off the ground, and I was suddenly flat broke.

It happened at a crucial time too. I was in my final year of graduate school, and I had been burning the candle at both ends for a couple of months. I was maintaining a 4.0 in a pilot grad program, and my efforts to get my second book published and into print had paid off. Yep, I was swimming in pride about my accomplishments. By the time my husband and I realized that our financial situation had taken a fatal hit, the stage had already been set for the downward spiral that followed.

Talk about a wake-up call! A major reevaluation was in order, but the reality of my financial failings left me at a loss as to what my next move should be. I went into survival mode. After a year of struggling to regain some semblance of normalcy, I knew that my first priority must be to reestablish my financial footing by taking baby steps. It didn’t take a master’s degree to see that I needed to get a financial education before I could fiscally reinvent myself.

Co-founder and CEO of Blue Ocean Global Wealth, Marguerita Cheng agrees that women need to be financially educated, so that they can take a more active role in their own financial lives. In a 2018 CNBC article, Cheng says, “Women must learn to budget, prioritize, save for retirement, protect themselves and their families and get financial educations”. Even with all the successful women out there making it happen, our gender continues to lag behind men financially.

According to Cheng, as well as Katie Labosco (cnn.com), just a few reasons for that lag are:

• Men work longer hours than women, which creates less opportunity for women to save money (Bureau of Labor Statistics)

• Divorce changes family dynamics, causing women to learn to fend for their families financially (according to research, the divorce rate in America is 40% to 50%) (USA Today)

• With more educational attainment, women are juggling more leadership responsibility with managing family and personal finances (U.S. Census Bureau)

• Women spend more than they earn each month (Financial Finesse), and

• Women are “leaving money on the table” when they fail to save enough money in 401(k) or 403(b) accounts to capture employers’ match.

Knowing this, what’s a girl to do? When the financial waters have become a little too murky, perhaps the best thing to do is start from scratch. Some of my favorite tips from Cheng, as well as from Sallie Krawcheck of Ellevest are:

• Make a simple budget that lists household income and expenses that are highest priority, and build an emergency fund

• Get rid of any unnecessary expenses (if you pay for a gym membership, try to find a neighborhood recreation center or YMCA where you can work-out for less, or even a park where the workout is FREE)

• Invest in retirement…whether with your employer or through another reliable investment source (Micro investing is worth researching)

• Get out of high-interest debt (student loans, credit cards), and

• Decide what you really want and set goals to get there.

Financial reinvention takes a little bit of creativity and a lot more control, but with the right tools and some positive vibes, your epic fail can be a new beginning!

#reinvention #finances #failure #newbeginnings