LOOKING FORWARD
TO FINANCIAL RECOVERY
By: Jean-Luc Tahou, MBA, CFP

The past 20 months have been difficult for many, in terms of economic uncertainty. Countless individuals have been laid off while others have lost retirement accounts, personal possessions or even their homes in the wake of the economic tsunami that hit the US starting in 2008. Indeed, facing financial difficulties is never easy and can even be traumatizing. No matter how bad and hopeless the situation, one should look forward to a recovery. It is that recovery that will set the stage for tomorrow, and there are several powerful and poignant things to look forward to, during this process.

Believe it or not, the hustle and bustle of our former lives kept us spinning our wheels while going through the motions. When confronted with the prospect of losing it all, we realized our powerlessness and resorted to prayer. I believe the value in the rediscovering of our faith and our spirituality is not to be discounted. A stronger relationship with God brings us back to sound and time-tested principles, which we can extend to the way we handle our finances. Experience being the best teacher, going through periods of lack, tend to make us relate better to the less fortunate and reflect on the frivolous spending we were once prone to. Humility, charity, and generosity are some of those things we can expect to re-learn.

There is something to be said about the clarity we gain when we lose our material possessions. For example, instead of being a cause for panic, we should take advantage of the stillness of unemployment and the loneliness of foreclosure, as opportunities to go back to whom we are deep inside. When all the fluff and material stuff is removed we are able to see what we are made of, what we can live with, and what truly matters. In a sense, we reclaim our old true self-back. It is in adversity when we truly learn who we are and navigating our way back to financial solvency is one instance where we need to strip ourselves bare of previously harmful behaviors and start anew. Once things begin to look up again, it is best to move forward with a better understanding of ourselves intact.

However, the best part of the recovery is getting your “stuff” back. Things that have been sacrificed or even sold can be reintroduced into the equation. At that point, we have a better appreciation for them and respect them for what they are. Activities such as shopping and eating out are rightfully categorized as luxuries and can be enjoyed again with a greater awareness of their value. The value of an emergency savings fund is made evident and is funded more diligently. It is a pleasurable experience to genuinely enjoy things that were taken for granted in the past. Indeed, losing material possessions and getting them back acts as a re-setting of our “values” clock so we can truly keep things in perspective and our sense of entitlement in check.

Now that the waters are somewhat calmer, it is time to look more confidently to the horizon with hopes of the economic situation improving. While in recovery, take the opportunity to explore, which lessons are to be gained from such a traumatic experience. The perspectives outlined above should be held dear during the recovery process as they reveal the few things to look forward to in the midst of our tribulations. Think of them as a silver lining in a cloudy sky. Can you think of better gifts in recovery?