Financial investigators wanted!
Watch any crime show and the star investigator knows that recreating and solving the case requires looking at the scene from all sides. Any discovered detail, no matter how small, could be the key to breaking open a stubborn case. However, maintaining assumptions is the quickest way for it to become a cold case. Sometimes our finances can seem like the unsolvable mystery. Who is the perp? The stock market, job market, or family expenses. Maybe. What was the cause of death? Overspending, apprehension to take on risk, or breakdown in communication. Your guess is as good as mine. As much as I like solving crimes, I prefer to prevent them.
What ‘financial crimes’ need to be prevented? Our money is dying a slow, quiet death in the miscommunication ballroom. Our dwindling savings account might have been victimized by a sturdy credit candlestick. And it seems like Ms. Scarlett took a stab at our 401(k) investments because they are definitely in the red. So what do we do? What can we do? First, we should get serious and bring the Clue™ game metaphors to an end. Second, we have enlisted the services of a wily financial investigator to ask a few questions.
We are here for the facts, ma’am. No detail is insignificant and no judgment is asserted. Armed with tweezers, evidence baggies and a magnifying glass, let’s get this investigation started!
What are the concrete facts? I know that our family income is good, but it is becoming more challenging to keep up with current demands. I know that we have had to lean on consumer debt more because of the increasing costs. I know that the combination of the two is creating some internal pressures and family discussions are more intense. I also know that job satisfaction is hindering my engagement at work. And I know that our family is growing (baby #3 is on the way!), so we are going to need more space.
Acknowledging the facts is the beginning. Having a sober and realistic view of what we are facing is valuable in developing a picture of the scene. How do we adjust if we don’t know the basics? Even if life is currently coming up beautifully rosy, we have to locate all the blind spots lest we fall prey to our own ignorance. The next step to cracking our case is to examine the perimeter. There could be an easy hole to close that has long been missed.
2. What are we overlooking? Your company has a professional development track that allows for hard and soft skill development and upward mobility. Perhaps you can consider contacting the HR department to learn more about opportunities and requirement. Or you heard about low-cost professional certificates for education, information technology, accounting, graphic design, photography, among others. Perhaps some of those topics are of interest and can be taken remotely. (45 Types of Certificate Programs for Different Career Paths, Indeed.com, May 2023) Even if a career pivot is scary, it could be a refreshing and vital infusion into your professional life and by extension, your finances. Let’s not forget about that cobweb filled storage unit we have paid $26.76 per month for the last 5 years. (don’t do the math, it will make you sad ☹.) You plan to clean it out on a spring day, but strangely, that task continues to be usurped by tasks like cleaning out the gutters on a rickety ladder. What in that storage unit could be a useful financial flip? Furniture, card and book collections, antiques? Will the contents make you a millionaire? Unlikely. But can it bring you a couple hundred to a thousand dollars to put some space between you and life? Perhaps. Every available dollar should be discovered. Inquire with you local county on garage sale policies. Put the date on the calendar and make it fun family activity!
Hopefully the brain cells are firing, and ideas are being prompted. But we aren’t done yet. We know what is obvious and are closing up the easy gaps. Our last step in the investigation is to widen our scope to consider the outer limit of possibilities.
3. What are the unrealized possibilities? This is the opportunity to really stretch the thinking on potential options. Is it finally going for that business that’s been in your heart for a decade? Before striking out, you should educate yourself on how to start a business. The Small Business Association Learning Platform is an excellent resource. Or perhaps now is the time to expand the business you’ve been dabbling in, but acquiring property is necessary. It is a profitable venture that has great potential to upscale. Crunch some numbers to see if the cash flow can support the acquisition in addition to researching funding products at local community banks. Perhaps you have reached the highest level in your current organization, but have honed a certain set of skills that could propel you forward in another company…in another state. Why is this such a stretch? Changing jobs can be really intimidating. What if the skills don’t translate as anticipated? What if the work environment is worse? What if the work is actually less enjoyable? What if my children don’t easily acclimate to the new school and neighborhood? What if it takes longer for my spouse to find employment, thus putting more pressure on our finances rather than less? All those are valid considerations, but we can responsibly weigh all the factors and make the best and most informed decision for the family and career. Even if we choose differently, we owe it to ourselves to be open to the possibility. (15 Tips for Comparing Job Offers, Indeed.com, June 2023). Remember, we are trying to prevent a financial crime, no method is off the table.
After lengthy and detailed questioning, our financial investigator’s findings are that our financial situation can be improved with a few intentional tweaks. Recommendations include developing a realistic view of our current world, taking easy steps to shore up vulnerabilities and not being afraid of the ‘the swing for the fences’ type of choices. No guaranty that it will be improved overnight, but all signs are pointing to a positive result with commitment and wisdom.
Whew, my hats off to actual investigators; not for the faint of heart! Changing involves tackling the challenges. Reaching for the impossible adjacent is squarely in that bucket. But you can do it, and you are worth the effort!!!
One last thing. The 50/70/100 principle. What is the 50% uncomfortable, the 70% incremental and 100% vital that you can think about and do?
If you stuck with me to the end, I sincerely thank you. If you want to talk about it, drop us a note at letstalk@studiomfinancial.net. Until we meet…keep working on the change.