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Day 28: Recession-Proof Your Finances

Apr 13th, 2020 • Jasmin Snyder

We’re wrapping up this program over the next couple of days. How are you doing on our goals of cutting $500 of expenses, pressing reset, and stopping the guessing? We are so close to closing this program, but we know if you’ve followed along your financial life will be better for it. Today we are doing a S.W.O.T. analysis on your financial life, let’s do this.

S.W.O.T. Analysis

A S.W.O.T. analysis is going through the strengths, weaknesses, opportunities, and threats for any give situation. Today we’re going to use this analysis style on your current financial reality.

Strengths

  • Income
  • Savings
  • Lifestyle

The whole point of strengths exercise is to build your confidence. Maybe you still have your income. Maybe your emergency fund is fully funded or more and you have that solid foundation to fall back on. Or maybe you are counter-cultural and live a minimalistic lifestyle the helps you be significantly less dependent on your income compared to your peers. What are your strengths?

Weaknesses

  • Income
  • Savings
  • Lifestyle

The same categories that are strengths can also be our weaknesses. You could be one of the millions of Americans who have lost their income. You could be one of the millions of Americans with almost no savings. You could be one of the millions of Americans who spend too much on fast food, subscriptions, and online shopping. No judgement, we are in this together. These are weaknesses we have together. What are your weaknesses?

Opportunities

  • Reset
  • Investments
  • Real estate

This is one of those times when things are so bad the only way out is up. This may be the darkest time in your financial life, but it will get better. Maybe for you this is a time of mandatory reset. You may have lost your job, your home, or worse, but you’ve taken a hard reset. You are getting closer to the rebuild phase. Maybe you are in a better situation, you still have your income but you’ve taken this time reset some spending habits that have gotten out of control and are focusing on saving for the future. That’s a huge opportunity for growth! Maybe you’ve got the cash on hand to buy some investments when their cost is low. Or maybe you are a renter with a steady income and solid savings and in the next few months as the real estate market starts its decline you’ll be able to jump in and get a good deal. What are your opportunities?

Threats

  • Employment instability
  • Getting re-hired by July
  • Health emergency

There are a myriad of threats that you could be facing right now. Your number one concern is likely your employment stability if you are one of the lucky ones that are still employed. Your stability may be solid now, but what about 1 month from now? or 3? You have to be prepared for anything. If you’ve already lost your job you may feel you’ve hit rock bottom but unfortunately your prospect for getting re-hired is still your biggest threat. The bump in unemployment income will end on July 31, getting re-hired by then is your priority right now. Not to state the obvious, but we are in the middle of a health crisis. And since we live in America, any healthcare crisis is also a financial crisis. What are your biggest threats?

This S.W.O.T. analysis can be difficult to do right now. You may not want to face your reality at the moment. Highlight your positives, improve your weaknesses, and stay on guard with your threats. You’ve got this.

If you are looking for more personalized guidance don’t forget that a Hey Money expert is always ready and waiting to help you sort out this mess. Use code ‘cheese’ to get a 10% discount on a monthly subscription just for being a part of the 30 day recession-proof your life program. Stay strong!

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