Self Reflection: My Recession Progression
They say that tough times make or break people, well certain ones within my life have done both at the same time. Follow me for a few, you will get what I mean. Over my lifespan, there have been some interesting events that shaped the person you are witnessing formulating. The launching pad for this platform was made up of three pillars: My Parents, My Interacts and The Great Recession.
The last point is going to be the one I expand on a bit for right now due to the current pulse of the climate. You see, we moved into a recession in February (Read the Pandemic Paper article for more context). I felt that now was a good time to give you some tea that you can sip and structure your future with. That part of my life was the reason that I felt it imperative to talk even more about what I didn’t have for those 4 years of my life - Money.
Yes, you read that right. I was without a job for a little over 4 years due to The Recession. Granted I was on Unemployment. That gratitude within that was met with my expenses matching what my traditional paycheck, not the new source of income. For most on UE (unemployment), that weekly payment is often lower than what you used to bring home. This is why I tell folks to utilize the “Bills, Build, Blow” method to their expense management (budget). That space in time allowed me to look beyond the traditional way of doing tings.
While waiting for UE to kick in, I only had 2 weeks pay to survive on. Chile, yes. Doesn’t sound “Bills, Build and Blow” ish, does it?! I learned a lot about money when I didn’t have it. Going from being nearly in the triple negative to multiple savings accounts backed with a portfolio and wealth mindset doesn’t happen overnight.
My lessons from that period of time within my life, have set the foundation for what I am building today. What is common sense to some is foreign to others. For African Americans, we face a 228 year wealth gap from White people. With over a Trillion dollar spending power, that should reflect within our net-worth. Well let me tell you - it isn’t! We are in last place for everything from purchasing stock to having a savings account to even purchasing a home. While this is being done by us more than ever before, there is still a good bit of the “family” (the rest of the culture) who isn’t able to make those strides. I said this in one of my recent “The Wallet” e-mails:
‘I want us to be aware of where we are individually, so we can fix it and then formulate to be able to run together stronger. We can’t pass the baton if one person is weak. We have to condition separately and then train together collectively. That’s where the cash is at - collectivity.
So, I know that the current climate isn’t the best for thinking about building wealth, it actually is, Do you know that Millionaires were built in the mess of The Great Depression and Recession? They didn’t get it overnight, but the foundation was built during those tough times. What are you doing to make passing the baton on to the next generational? You don’t have to have a business to cultivate your ‘why’. Think back to the Greenwood District (or Black Wall Street). If it was possible for them, it is for us. “
hese cute sayings like “Check Your Check” are just ways for you to start thinking about and creating your wealth habits. And they came from that season of my life. Even during a pandemic, recession or game of Jumanji those habits are going to be critical to building your wealth during A.C. (After Corona). I want wealth, habits and net -worth to be relatable to us - that’s why I say those statements.
Those lessons that I got during that time helped me build so many wealth habits that you see today. That ‘valley’ moment was the relaunching of what I learned from the other pillars - my parents.
So, what were some things that I grasped from my experience during the last recession?!
Build a Savings Fund before you need it. I know that you have heard of this before. As it goes, ‘stay ready so you don’t have to get ready”. This was proven to me first hand that knowing your numbers and building a plan is key. The shoe can drop any day for us.
Make your spending predictable. This helps you understand how to further structure your budget and money habits. Also knowing your fix and variable bills are and what can you pay along with when. I am only a fan of ‘auto-pay’ on fixed bills that are the same month in and month out. Those variable bills can be tricky if you don’t look at your bill.
Watch trends, not politics. The reason why I am bringing this up is due to how politics is eclipsing us from learning about the trends going on. From unemployment benefits to stimulus to just understanding how the stock markets don't always align with the economy.
Stocks can survive and thrive. Yes, that market looked like a trash landfill during the last recession, but peeping at the prospectus of certain companies can tell you how those companies held on during that uncertain time. Use that information what you will.
You will make it. No matter how this current pandemic positions us after it, we must keep focus and know that we will make it. Do the work now while you feel comfortable. That will allow you to feel secure if ever the uncertainty happens. Regardless if we are in a recession or not when you are reading this doesn’t mean anything. Why? Everyday is a recession for someone. 1.3M people filed for unemployment for the first time this week. Need I say more. Use those 4 things from above to help you keep your head above water!