50: Don’t Panic— Prepare

WEBVTT
00:00:00.179 --> 00:00:02.305
Hey, welcome to the Position Podcast.
00:00:02.305 --> 00:00:10.570
I am your host, kimberly Knight, and today we are going to talk about some of the things you can do to prepare for what is about to come.
00:00:10.570 --> 00:00:21.149
We know that we've been hearing calls for that a recession is coming, that there are some downward economic shifts coming and we need to be prepared, but how do you prepare?
00:00:21.149 --> 00:00:26.471
Today, we're going to talk about just that thing, and this is not financial advice.
00:00:26.471 --> 00:00:32.052
Please do consult your own tax preparers and financial advisors for financial advice.
00:00:32.052 --> 00:00:37.332
I just want to make sure that you know what questions to ask and how to begin to prepare.
00:00:37.332 --> 00:00:43.844
So one of the things I want you to consider is that the Proverbs 31 woman was not afraid of snow for her household.
00:00:43.844 --> 00:00:44.889
Why?
00:00:44.889 --> 00:00:51.030
Because she was prepared right, so she couldn't stop the snow from coming, but she could keep them from getting cold and wet.
00:00:51.030 --> 00:00:56.533
So I want you to prepare so you're not cold and wet.
00:00:56.533 --> 00:00:58.399
You know metaphorically.
00:00:58.399 --> 00:01:14.427
So the first thing you're going to consider doing in order to prepare for any coming economic downturn or recession or depression or whatever way you know finances twist and turn in the world is you want to mitigate the damage by having an emergency fund.
00:01:14.427 --> 00:01:16.373
You want an emergency fund Now.
00:01:16.373 --> 00:01:19.543
The goal is to have three to six months of living expenses saved.
00:01:19.543 --> 00:01:33.531
But if you don't have the margin to do that right now and you know I can teach you how to make some more money but if you don't have the margin to do that right now and you know I can teach you how to make some more money but if you don't have the margin right now to build a huge emergency fund, you can save some money here and there.
00:01:33.531 --> 00:01:45.748
Be sure to set aside a little bit out of every paycheck, a little bit out of every client payment so that you set aside something in case of emergency Like grandma would said, it just might happen to you fund.
00:01:45.748 --> 00:01:47.620
Come on, come on right.
00:01:47.620 --> 00:01:56.245
We know some of us were only one popped tire away from having to go for a payday loan or something like that.
00:01:56.245 --> 00:02:03.427
Come on, you've got to put away that emergency fund because emergencies can and do happen even to the body of Christ.
00:02:03.427 --> 00:02:05.112
So get that done.
00:02:05.112 --> 00:02:09.768
Start putting that money on the side, and don't just put it on the side.
00:02:09.768 --> 00:02:15.213
You want to put it in a high yield savings so that you can get some interest on that money and help your money to grow.
00:02:15.213 --> 00:02:17.246
Come on through, all right.
00:02:17.760 --> 00:02:26.748
The next thing you want to do, in order to prepare for what may be coming, or what changes may be coming economically, is to cut all non-essential spending.
00:02:26.748 --> 00:02:31.188
Okay, so begin to review your monthly expenses.
00:02:31.188 --> 00:02:40.211
Some of you don't know how much it takes for you to live every month, but you need to review how much you've been spending every month and cut things like unnecessary subscriptions.
00:02:40.211 --> 00:02:44.394
Cut things like impulse shopping or eating a lot of takeout.
00:02:44.394 --> 00:02:45.840
Got to go, gotta go, gotta go.
00:02:45.840 --> 00:02:51.270
And right there you're going to save some money that you can put aside for your emergency fund.
00:02:51.270 --> 00:02:52.193
Come on, y'all.
00:02:52.193 --> 00:03:02.046
Speaking of which, I just said that some of you don't know how much it takes to run your household or how much you're actually spending every month, because you haven't done a budget and you're not looking at your spending.
00:03:02.046 --> 00:03:04.024
If you get it, you spend it.
00:03:04.024 --> 00:03:07.932
So it comes in on the left hand, you send it out on the right, but you don't know what's going on with your money.
00:03:09.420 --> 00:03:12.770
It is time now to compute your endurance number.
00:03:12.770 --> 00:03:23.812
Now, if you've been following me for a while or you've been one of my clients or one of my students, you know one of the things that I love to do is to calculate your exodus number.
00:03:23.812 --> 00:03:33.961
And your exodus number is how much money you would need to make in your business in order for you to leave your nine to five job and live the way you're living right now.
00:03:33.961 --> 00:03:39.287
So you'll be able to sustain your lifestyle and leave your nine to five job based on what you're making your business.
00:03:39.287 --> 00:03:40.492
So that's your exodus number.
00:03:40.492 --> 00:03:44.305
I also teach my clients to calculate their John 10, 10 number.
00:03:44.305 --> 00:03:46.508
Now, your John 10, 10 number is your abundance number.
00:03:46.508 --> 00:03:49.200
It's not how you're living, it's how you would like to live.
00:03:49.200 --> 00:03:50.062
Come on y'all.
00:03:50.062 --> 00:04:00.282
You know all the things that you dream of and you know I go into that with my clients and I'm going to have some surprises because I'll be working on that with some other folks soon.
00:04:00.461 --> 00:04:09.206
But this is about how much you would need in order to live your dream life In the case of some economic downturns coming.
00:04:09.206 --> 00:04:11.832
You also need to know your endurance number.
00:04:11.832 --> 00:04:16.829
How much money do you need to sustain yourself?
00:04:16.829 --> 00:04:26.033
Just you know, with the bare minimum, if you didn't spend anything extra, what do you need to do to endure that time period?
00:04:26.033 --> 00:04:28.725
It's not a forever thing, it's a right now thing.
00:04:28.725 --> 00:04:34.651
How can we survive and get through this without having a complete come apart in our household.
00:04:34.651 --> 00:04:39.610
You need that number, so that doesn't include anything like extras, right?
00:04:39.610 --> 00:04:48.235
That's no vacations, that's not things like buying clothes and shoes and, if you know, deal with your emotions through shopping.
00:04:48.235 --> 00:04:54.180
Now is the time for you to get into some therapy and deal with your real stuff so that you don't have to be a shopaholic it looks at.
00:04:54.180 --> 00:05:00.093
Do we really need all five major networks or streaming services?
00:05:00.093 --> 00:05:00.713
You don't.
00:05:00.713 --> 00:05:02.305
You can survive without them.
00:05:02.305 --> 00:05:05.550
My gosh, you might actually have to talk to the people in your house.
00:05:05.550 --> 00:05:07.708
I guess we'll have to do a different show about that, right?
00:05:07.708 --> 00:05:10.750
But yes, this is just your survival number.
00:05:10.750 --> 00:05:12.708
This is just your endurance number.
00:05:12.708 --> 00:05:21.833
What would you need to endure for a short period of time it's not forever in order not to have a complete economic collapse in your own household or in your own budget?
00:05:22.033 --> 00:05:29.896
Another thing you can do to prepare for any economic downturn or recession is to invest your time and energy into new skills.
00:05:29.896 --> 00:05:35.218
Right, you got to build new skills, and when I say new skills, it may be something that's non-traditional to you.
00:05:35.218 --> 00:05:38.011
You want to make sure there are essential services.
00:05:38.011 --> 00:05:42.146
There are some things that I don't care how bad the economy is.
00:05:42.146 --> 00:05:43.048
They're going to be needed.
00:05:43.048 --> 00:05:47.687
Healthcare going to be needed, tech skills going to be needed for the rest of our lives.
00:05:47.687 --> 00:05:52.485
Here is something that you may not have thought about Repair skills and trade skills.
00:05:52.485 --> 00:05:55.151
And here's the thing about so.
00:05:55.151 --> 00:06:00.322
If we have an economic downturn, when it happens, people will not be buying new things.
00:06:00.322 --> 00:06:02.156
They'll be repairing what they already have.
00:06:02.156 --> 00:06:13.259
If you have the skill set to do that, guess what you've got Income, and you can also use that for your own household, right, which is part of your endurance.
00:06:13.259 --> 00:06:16.057
Come on, y'all this is some good stuff, right?
00:06:16.057 --> 00:06:17.564
So we know tech skills will never go away.
00:06:17.564 --> 00:06:18.446
They will always be needed.
00:06:18.446 --> 00:06:19.108
All this is some good stuff, right?
00:06:19.108 --> 00:06:19.951
So we know tech skills will never go away.
00:06:19.951 --> 00:06:20.492
They will always be needed.
00:06:20.492 --> 00:06:41.795
The other thing, the other endurance skills that you may need, are things like sewing, canning, anything that helps us to survive and thrive Car repair Come on, people are not going to be buying new cars, okay, well, I mean they might, but you know it's going to be nice to be able to have that skillset, not only for your use again, but also so that you can use it as a source of income.
00:06:41.795 --> 00:06:42.559
Come on.
00:06:42.769 --> 00:06:54.721
Another thing you'll want to do right away is to update your resume, your CV, your LinkedIn, and invest your time and energy into your professional and your personal networks.
00:06:54.721 --> 00:06:58.112
This is not the season for the lone wolf, I am telling you.
00:06:58.112 --> 00:07:00.656
You are going to need your friends and family.
00:07:00.656 --> 00:07:02.860
There is this song oh, what is this song?
00:07:02.860 --> 00:07:03.983
I need you to survive.
00:07:03.983 --> 00:07:05.615
That's the season we're entering, people.
00:07:05.615 --> 00:07:06.740
So this is the time.
00:07:06.740 --> 00:07:08.930
Make amends, have those conversations.
00:07:08.930 --> 00:07:11.300
You need to clear up any misunderstandings.
00:07:11.300 --> 00:07:18.915
Take a look at your personal and your professional networks and begin to invest time and energy into them before you need them for your time of endurance.
00:07:18.915 --> 00:07:20.175
Come on y'all.
00:07:20.175 --> 00:07:26.800
Keep your resume up to date, keep your LinkedIn up to date, keep your professional connections and your professional associations.
00:07:26.800 --> 00:07:28.362
Give them some energy right now.
00:07:28.362 --> 00:07:29.122
Because, guess what?
00:07:29.122 --> 00:07:35.208
People are literally going to work and finding out when they get to work that they don't have work right.
00:07:35.208 --> 00:07:40.271
So they're showing up at their nine to five and they find out at 8.59 that they don't have a job.
00:07:40.271 --> 00:07:43.603
So you want to keep all these things in place, just in case you need them.
00:07:43.603 --> 00:07:54.497
I'm hoping that that doesn't happen to you, but if it does, you want to be prepared Again, this is not the season for the lone wolf and this is not doom and gloom.
00:07:54.778 --> 00:07:55.779
This is preparation.
00:07:55.779 --> 00:07:57.584
This is preparation Again.
00:07:57.584 --> 00:08:02.648
That Proverbs 31 woman didn't have to be afraid for her future because she knew who held her future.
00:08:02.648 --> 00:08:08.177
And the person who holds the future is the almighty God, and he is telling us to get ready.
00:08:08.177 --> 00:08:11.819
So it would be for us to listen and be ready.
00:08:12.261 --> 00:08:22.124
All right, the other thing you want to do is pay down as much debt as possible, because the last thing you want to do if there's an endurance season that comes, is to have to pay debt.
00:08:22.124 --> 00:08:25.692
So pay down everything you can, everything with high interest rates.
00:08:25.692 --> 00:08:26.774
Pay it down.
00:08:26.774 --> 00:08:31.033
Pay it off that money that you're saving by not going to restaurant.
00:08:31.033 --> 00:08:32.576
Use it to pay off your debt.
00:08:32.576 --> 00:08:35.121
Use it to fund your emergency fund.
00:08:35.121 --> 00:08:35.763
Pay them off.
00:08:35.763 --> 00:08:43.256
It'd be one less thing you have to deal with financially should an economic hardship hit your household.
00:08:43.256 --> 00:08:45.004
And I want to encourage you again.
00:08:45.004 --> 00:08:48.957
This is not financial advice, this is just something that I've seen in my own life.
00:08:48.957 --> 00:08:49.217
Work.
00:08:49.217 --> 00:08:53.155
Paying off the most high interest ones for me worked very well.
00:08:53.155 --> 00:09:01.341
I'm paying them off first because they're costing you more, and as you free up that income from paying that off.
00:09:01.341 --> 00:09:04.679
Then you can double up on payments on other things, and that's what worked for me.
00:09:04.679 --> 00:09:12.360
I'm not saying for you to do it, I'm just saying it worked very, very well for me and helped me to really get a handle on debt.
00:09:12.669 --> 00:09:21.140
All right, here's something else that you want to do just in case, just to prepare right, just to prepare if we see an economic downturn.
00:09:21.140 --> 00:09:24.193
You want to diversify your income.
00:09:24.193 --> 00:09:28.602
The Astes 11.2 says divide your investments.
00:09:28.602 --> 00:09:36.634
And if you read it in the new living translation, by the way, divide your investments among many places, for you do not know what risks may lie ahead.
00:09:36.634 --> 00:09:43.274
Whoa, I'm telling you, if there was ever a time for you to diversify your income streams, it is now.
00:09:43.274 --> 00:09:50.855
Right now o'clock, this is not the time to depend upon your nine to five to fund your household.
00:09:50.855 --> 00:09:58.833
You need to go ahead and make sure that you have multiple streams of income, multiple ways of making money, before you need them.
00:09:58.833 --> 00:10:01.197
Get them in place.
00:10:01.960 --> 00:10:13.164
And I am one of my favorite scriptures I believe it's second Kings four, one through seven and it says it talks about the widow who the creditors were coming to get her son, and she's and she goes to the prophet.
00:10:13.164 --> 00:10:14.772
And she says you know they're coming.
00:10:14.772 --> 00:10:18.360
You know my husband served you well, but he's dead now and I have no money.
00:10:18.360 --> 00:10:21.945
And they're they're going to come and take my sons away from me in order to pay the debt.
00:10:21.945 --> 00:10:23.748
And he says what do you have in your house?
00:10:23.748 --> 00:10:25.551
And she says I don't have anything but a little bit of oil.
00:10:25.551 --> 00:10:35.609
He said great, go borrow some vessels for the oil, sell it and use that profit to make money to support you and your children.
00:10:35.609 --> 00:10:36.596
Pay off your bills.
00:10:36.596 --> 00:10:37.538
There it goes.
00:10:37.538 --> 00:10:41.535
He says pay off the creditors and use the rest to support your household.
00:10:41.535 --> 00:10:43.539
And here's the thing that we need to do.
00:10:43.539 --> 00:10:47.989
We don't know what risk lies ahead, but we do have things in our hand.
00:10:47.989 --> 00:10:49.682
What do you have in your hand?
00:10:49.682 --> 00:10:57.048
We have things in our hand that we can make work for us and make income for us.
00:10:57.048 --> 00:11:08.683
And again, we can use that income not only to sustain our households, but also to pay down our consumer debt, especially consumer debt, as well as fund our emergency funds.
00:11:08.875 --> 00:11:14.047
Now, some of y'all can cook and right now you can do meals for families.
00:11:14.047 --> 00:11:17.375
Right, you could be like almost like a private chef for families.
00:11:17.375 --> 00:11:22.182
When I was younger and I was a single mom, I cooked.
00:11:22.182 --> 00:11:23.884
Like every once month.
00:11:23.884 --> 00:11:32.125
I would do dinners and I would package them family style and you could come and pick them up and after work I would have people order them ahead, pay me ahead.
00:11:32.125 --> 00:11:35.504
They had to pay me ahead because I needed the money in order to get the raw ingredients.
00:11:35.504 --> 00:11:46.010
I didn't have the money, but I paid my rent and sometimes my children's tuitions and bought sneakers and clothes, and all of that with fried chicken money.
00:11:46.010 --> 00:11:47.177
Right, fried chicken money.
00:11:47.378 --> 00:11:49.065
There are all kinds of things that you can do.
00:11:49.065 --> 00:11:50.431
Can you do hair?
00:11:50.431 --> 00:11:52.537
Listen, I'm looking for a braider right now.
00:11:52.537 --> 00:11:53.558
Can you braid?
00:11:53.558 --> 00:11:55.582
Make that money?
00:11:55.582 --> 00:11:56.765
What can you do?
00:11:56.765 --> 00:12:09.681
What can you do right now without going back for a degree, without having to go to another class, without having to buy anything too expensive, without having to invest time class, without having to buy anything too expensive, without having to invest time, energy and effort into your new skill, because you're learning some other skills, right.
00:12:09.681 --> 00:12:18.725
But I'm talking about making some money right now, this minute, with what you already know and can do, with what you already have the network for.
00:12:18.725 --> 00:12:35.261
And I'm going to give you the challenge to sit down and do not leave that seat, do not answer the phone, do not get on the internet, do not check your email, your texts or anything else until you write down 15 things that you can do right now to make some extra money.
00:12:35.442 --> 00:12:37.787
Here's the other thing I want you to consider.
00:12:37.787 --> 00:12:49.424
Other thing about having the extra income and doing things right now to make money is this is the season that if you have not started your business, if you have no side hustle, you have not started a business.
00:12:49.424 --> 00:12:51.678
You need to do it Now.
00:12:51.678 --> 00:12:52.120
Right now.
00:12:52.120 --> 00:12:54.866
We'll go as of the recording.
00:12:54.866 --> 00:12:58.657
Right now, the tax benefits alone would be beneficial to you.
00:12:58.657 --> 00:13:07.541
Right so now you can not only have the income, not only have another stream of revenue, but you'll also have those tax benefits that you would otherwise miss out on.
00:13:07.541 --> 00:13:15.826
So, as of this recording right, things can change, but as of now, it's a great way for you to add to your family's income.
00:13:15.826 --> 00:13:18.155
So please do so Now.
00:13:18.155 --> 00:13:19.238
These are just a few ideas.
00:13:19.278 --> 00:13:23.139
There will be some subsequent shows, because we need to talk about this.
00:13:23.139 --> 00:13:26.538
People, I hate to say it, but it seems like it is coming.
00:13:26.538 --> 00:13:35.407
We may not be able to stop this train, but it doesn't have to run over the top of us, we can get to the point that we can ride the train rather than being stuck under it.
00:13:35.407 --> 00:13:37.558
All right, thank you so much for joining us today.
00:13:37.558 --> 00:13:40.735
There will be more shows about how to prepare for what is coming.
00:13:40.735 --> 00:13:44.187
I will have some special guests coming up, so stay tuned for those announcements.
00:13:44.187 --> 00:13:52.220
Be sure to like and tag and subscribe so you don't miss a thing, and share this with a friend, because we want to take care of the people around us.
00:13:52.220 --> 00:13:55.190
All right, until next time, be wonderfully blessed.
00:13:55.190 --> 00:13:55.754
Bye now.