3 Keys to Succeed in Today’s Economic Climate

Remember the days when you used to get a smack on the bottom from your Mum or Dad?  I do.

For those of you raised in a generation where discipline was a good idea you’ll join me in remembering the good ol’ days… days that included the occasional (and necessary) correction in behavior which was delivered with the help of a wooden spoon or a leather belt.  I can still remember the feeling afterwards;  the smarting, stinging hotness on your bum, or hand, that reminded you that you had been naughty.

There are plenty of people who have a smarting, stinging hotness in their bank account or finances.  Some people have taken a real hiding with the last four years of Global Economic Crisis.  So my purpose today is to provide some encouragement and keys to get yourself out of this situation for the purpose of making financial progress.

I was asked the other day if I felt things were improving in New Zealand.  I reckon they are, in certain sectors and in certain locations.  Today I want to share 3 Keys for Success in today’s economic climate.

KEY #1 – Seize opportunities

One of the indicators for me that the economy is recovering is that I see opportunities to make money several times a week.  For a long time there has been near-zero confidence in the market which is the reason people keep their hands in their pocket and do nothing.  Friends, that time is over.

Many people, including me, took a hard smack to the bum at some stage in the last four years.  And I know better than anyone how hard that hits your confidence and willingness to get out of the hole and take hold of opportunities.  But you can’t let a smack keep you down forever.

I encourage you, no, I challenge you… find an opportunity in the marketplace and take a step towards it.

Before you do that, you need to get a hold of the second key.

KEY #2 – Be open to risk

Each of us have a different blend of personality traits.  And in the same way, we each have a different propensity to financial risk.  Your risk profile can be your biggest strength and, when over-extended, it can be your biggest weakness.

If you consider yourself a “Conservative” risk profile when it comes to money then this has most likely protected you from catastrophic financial disaster for all of your life.  (Or you are now ‘scared’ into this position because of a crisis!)  But if you continue to retain this position then you will miss out on the chance to step out of your comfort zone and seize one of the many opportunities I mentioned in Key #1.

And if you consider yourself a “High Risk” profile when it comes to money then this may be the reason you’ve had some ‘big wins’ and ‘big losses’ in the past.  Your ability to take risks is why you’ve made progress, but it’s also the reason you’ve had some set-backs.

I guess the people I’m really speaking to here are the ones who have a naturally low risk preference as they are the ones who need to step out of the box a little more.  If this is you, ask yourself this question:

–  What do you need to do to be comfortable to take the first step of risk in the area of your finances?

For everyone, before they take risks they need to have both hands firmly around this next key.

KEY #3 – Get a grip of your financial behaviour

One of the aspects of money is that it is always threatening to let you wipe yourself out.

I have seen plenty of people make some pretty dumb financial decisions or commitments lately and I feel sad that they’ll be paying the price for those choices for many, many years.

If you do not take control of your money and force it serve you then you will be controlled by your finances and be forever saying “I wish”, “I can’t”, “I shouldn’t” or “Stuff it, let’s do it anyway!”

Our family has made definite, clear steps to put in place new financial disciplines that allow us to be in control of our finances.  Each month we make wise choices based on the plans we have set in place – plans that will see us have fun and make progress.  We make sacrifices, we delay some things, and we enjoy time together.  All of this is done inside the Financial Plans we all have agreed to.

Guys, when you get a grip of your finances you will feel a lot safer to step out and take risks.  Why is this?  Because you will have confidence in the knowledge that you already have the basics of life sorted, no matter what happens.  And then when you’re prepared to take risks you will begin to see the many opportunities that are around you every day of the week.

So do the 3rd Key first… and the rest will follow.

To get a grip of your finances, register for the upcoming wisemoney seminar here.