Last time we talked about rewriting the way you perceive how long you can make your retirement fund last and what you think about job security options.
Now let’s look at two other areas of psychological vulnerability.
What is the story you tell yourself about downsizing your life?
This is a hard one.
Most people in their 40s & 50s have accumulated some wealth and enjoy the trappings of that lifestyle.
You may be convinced you still need all the material things you’ve collected over decades even though you don’t use many of them. Giving up the extras makes it seem like you made a mistake to buy them in the first place, or that you’re taking on a life of austerity.
You need to convince yourself you can live with less. Because you can. Way less, in fact.
It’s not austerity, it’s minimalism and it makes brilliant sense. The financial advantages are numerous. You’ll carry less debt, lower your overheads, and you can increase your savings. There’s relief in not having to manage all the stuff. You’ll also see yourself exercising direct control over your situation. The psychological benefits are massive.
How can your story about how you are downsizing your life be improved?
What is the story you tell yourself when you think about an potential economic crisis?
Maybe you think it won’t happen. In a quiet moment in your office you could probably get away with that, especially when the duties of life and work are distracting you.
When you watch the financial news the outlook seems grim. Especially the the folks who keep talking about a global economic machine greased by cheap money, leveraged banks, and more global debt that all the money in circulation.
Maybe you’re still recovering from the hit you took in the last financial crisis. When you start to rewrite your part of this story, you realize you have no control over whether or when another economic meltdown happens.
Then, there’s the other kind of economic crisis: “You’re fired.” That’s a private 2008. A private Lehman Bros. Every bit as devastating.
Either way, the only thing you can control is how prepared you are when a big hit happens.
The good news is there’s still time to rewrite your story. This is your Retirement Rehab story where you take action instead of just making hopeful assumptions.
This is where you can save money where it’s far less likely to be lost. It’s where you reinforce your cash flow with additional streams of income.
This is the part of the story where you’re far less worried about your income, retirement fund, job loss, or the brewing economic crisis. This is where you begin to see yourself as a survivor who thrives amid the chaos.
How can your story about how you can deal with economic hardships be improved?
Again, you can greatly increase your resiliency against all of these difficulties. Half the game is mental and it greatly depends on the story you tell yourself.