Penny Kidd walks through financial moves for uncertain times: start budgeting now, build an emergency fund, and don't panic-sell investments when markets drop. She shares stories from clients in the airline industry and her own daughter to show how planning beats fear.
Chapters
Hey Wise Guys, it's Penny with Penny Wise Coaching. I decided to use one of these filters today, which I don't usually use, so, because it makes me look really studious, so, and really smart. So today I want to come on here on my Penny Wise page and talk to my Wise Guys about fear and the stuff that's going on in our community right now. Now today is Friday the 13th, and when I first started to jump on here it was 3:13, so it just seemed appropriate that I come talk to you. Um, and then I had technology issues, but I wanted to kind of talk about some things that was on my heart today because obviously lots of people in our society, in our world right now, are super afraid. And there's also a number of people who think it's all some kind of conspiracy and that, you know, God forbid you should be out of toilet paper, right? So I just wanted to kind of tell you some, some cool things that I have thought of today and heard for the last week or two. One of the best texts I got this week. So I'm gonna first off bless anybody who is sick and hope that we all stay healthy and My bigger concern right now is that the economic impact that this huge amount of businesses shutting down and events getting canceled and people staying home and not shopping, not spending, not stimulating the economy like we're used to— I'm more concerned about that than I am about getting sick. And it also made me realize today that what I do as a financial coach is more important than ever. And for those of you who think, oh yes, someday I should look into that, maybe one day I'll work on my budget, maybe someday I'll get serious about paying off debt or having money to invest— this whole episode right now that our, our world is going through, and especially the U.S., is— it's, it's going to devastate a lot of people. And what it has made me super aware of, mostly because I got a text a couple weeks ago, almost before I even knew what was going on because I don't watch the news. Um, but one of the texts that I got said, hey, I just wanted you to know, Penny, that, um, they're making a lot of cuts at my work and mandatory layoffs. She happens to work in the airline industry And she said, "Because of my work with you, we're going to be okay." Now that was really touching to me because I wouldn't even consider them to be stellar students or super successful in terms of budgeting. And what I realized was a little bit of effort goes a long way. And starting to think ahead about your income and your future and what, you know, what can we count on and what can we not count on makes a huge difference. So I just wanted you to maybe take 2 minutes to think about what your situation is. And my own daughter is, is suffering from lack of work because the theater industry in, in New York City and Broadway have shut down now for a month plus. So all of us need to have some cushion in our lives. Right? If we spend every dollar that we make on the next shiny object and the things that, that we think we want, are we really protecting ourselves for the long haul? So for those of you who maybe have not started budgeting yet, today is a good day to start, to start planning and putting things in the order of priority. And honestly, right now I would say stockpile some money. You don't need to throw extra money at your debt right now. You need to have some money in the bank. But then when this blows over, and I believe it will, what are you going to do next? And how are you going to take advantage of this experience and your fear and worry right now about, you know, your hours getting cut, maybe not having enough money, you know, really being afraid? Put things in order of priority. When you're doing your budget, I really want you to look at what's most important, and it's most important that you're keeping a roof over your head and food in your belly. I get the whole toilet paper thing, but really, you guys, is that where our fear needs to be? Um, and then when this gets back to normal, it's super important to start realizing that none of us know what tomorrow brings. It could be a health issue, it could be an accident, it could be a job loss. Right? And this thing in our economy right now should be setting us up for really thinking about how's it going to impact us and what could we do to cushion ourselves in the future. Because honestly, I feel a whole lot of, um, peace around this situation because I know I don't have any debt and I have some money in the bank and I have access to other things. So yeah, the economy seems to be tanking in the stock market is going down. And you know what, I really truly believe that it's all going to bounce back. Am I a super nerd? No. Um, but I know that historically the market dips and the market will go back. And so don't freak out and don't sell off your investments. Don't pull your money out of the market. I know my friend Jack is watching, so hi Jack. He's way smarter about that stuff than I am. But what I know is we need to not react and do impulsive things because when you pull your money out of the market now, you're going to miss the upswing that's going to come right behind it. So actually, stocks and mutual funds are on sale right now. So I want to look at like, what else could I be doing to like position myself for better in the future? So first off, if you are somebody who's trying to right-size your ship and get out of debt, this is the time to start really being intentional with your money. And if I could be of help to you, I hope that you'll reach out to me and ask. What is that thing you do again, Penny? How do you help people? Because I know that the wise guys that I have worked with are in a whole lot better position today because they have some margin in their, in their lives and they have some emergency fund. They may not be completely out of debt, but they're, they're having a plan and they know where they can trim and what they can do to make a difference. So please don't be afraid and don't be running around living in fear. Let's just do what we can do. Wash your hands and pay attention to your finances and learn from this experience so that going forward, the next cycle of something that's going to go wrong as a crisis in your life, it maybe doesn't pinch quite as much. So, um, have a great day. Happy 4th or 3rd of whatever day is this, uh, Friday the 13th. And, um, take care of your family and your loved ones and, and be wise.
