Wednesday, January 14, 2015

Surviving a Financial Reversal



I called a friend today to wish her a happy birthday and found her in a funk. She said it wasn’t so much her age that was bothering her (today she reached the big round number that’s exactly halfway between zero and 100), but that she never dreamed that she would be where she is at this point in her life.

You see, like so many of us, she lost her job several years ago. She had weathered unemployment before; it was common in her industry, and she’d always found another job quickly. But that last job she lost turned out to be her last full-time job in her industry; despite applying for work everywhere and networking whenever possible, she hasn’t found a full-time job that pays anywhere near what she used to make. As a result, she’s been through foreclosure and bankruptcy, and has lived in a series of rental houses and townhouses while trying to make enough money from side jobs to stay afloat and keep her two growing children in food and clothing (she’s a single mom).

One of her comments to me was that she never dreamed she would no longer own a house at 50. I understood completely. I turned 50 the year after my husband had to close down his business and we were forced to sell our family home to stay afloat financially. We didn’t know where to go; we just had to find some place cheaper than our hometown. So we moved to a lovely vacation town four hours away, rented a house near the beach, and began to research what we would do next. That’s how I spent my 50th birthday, far from most of our family and friends, living in a rented house with no idea of where we would go next.

One of the things I shared with my friend is that we’re not alone. Many, many people are casualties of the economic disaster of the past eight years. And while some may have asked for trouble by buying houses they couldn’t really afford or spending all their home equity on vacations and clothes, others, like my husband and I, were debt-free but lost our income through no fault of our own.

Just recently I met a woman whose healthcare-related family business was wiped out as a result of the Affordable Care Act. She and her husband had to sell the gorgeous historic country home they had so painstakingly renovated years earlier and move to a tiny ranch in the closest town. Like my friend and I, she knows what it’s like to lose your home and belongings because of financial reversal.

That said, it does no good to wallow in our misery, even when we meet others in a similar situation (misery does love company, you know). After an initial grieving period, it’s important to move on. No, you didn’t expect this to happen, or to be where you are at this point in time. But stuff happens. And of course, it could be worse. If you and your family are healthy, you’re fortunate indeed.

To recover from a big financial reversal that changes your life, you have to look for the silver lining. I was inspired to write my downsizing eBook after realizing all the good that came out of being forced to sell or donate more than half of our belongings in order to fit into the little ranch house we finally ended up in after being forced to sell our family home.

For years I had been mentally overwhelmed by a basement, garage and house filled with the clutter created by a large family and two home businesses, but never found enough time to deal with all that stuff. Our three moves in four years forced us to do so. As a result we now live with far fewer belongings, yet we’re surrounded by our most valued and useful items without being burdened by clutter.

Better yet, we no longer have the specter of financial ruin hanging over our head. Our income may be much smaller than it was ten years ago, but so are our expenses. What a relief to have reached a point where life seems more manageable!

And as we face our senior years (something my friend is surely doing today), we realize that living with less stuff and less expenses is something that will make life easier as we age. As a bonus, we can already spend more time doing things we like to do because we spend so much less time on the care of a big house and yard. If there’s one thing I know for certain, it’s that time is becoming more precious the older I get.

So my advice for my friend, corny as is sounds, is to make lemonade when life gives you lemons. Instead of lamenting what you once had, or where you thought you would be by now, accept reality and move on. Make the changes you need to make and enjoy the benefits that come with them. Why waste energy thinking about what might have (should have) been when you can be using your energy to enjoy life now? There are good things about your current situation, but you’re going to have to make the effort to find them…..and celebrate them.


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