The first backups are likely the easiest - So let's put 'em up there. Savings, Credit Cards, Student Loans, Selling off stuff, getting a roommate, cutting back on expenses, dialing back the thermostat, taking a 2nd job, getting a loan from family or friends.
- In Silicon Valley, it's totally common to go through peaks and valleys. One day you're in college starting out with a dorm or crappy apartment - 5 years later you're in a great job with loads of benefits, driving a dream car - the next year, you're laid off - a year later you get an even better job - or one you like better along the way you get married or divorced, have kids or go through infertility treatments - It's just the roller coaster of living in a vibrant place. This article is about when times get bad - and some cost savings beyond what people usually come up with. It's also some strategies for positioning yourself to get through the tough times and stay on your way back to the good ones.
- The key is IMAGE . Even if you're in a rotten, low, horrible wretched time - present yourself as being in transition, re evaluating your priorities, looking at pursuing dreams you have had on hold too long, starting a business, doing some writing, maybe developing a seminar. SOMETHING. This is of course for the general public - LinkedIn, Facebook, colleagues, landlord, alumni association, professional clubs/networks.
- If you act like the money's coming - esp big money - it most will.
- California is very much about creating your own destiny - it is critical that you show you are creating a much better one - it's just taking awhile
- Actually in reality - if you are thinking and planning toward something really great - you'll take different roads and likely end up in a much better place.
- It's ok to be sad, mad, disappointed, distraught, grieving, confused, lost---- you don't have to deny it - that's the current moment's reality and you're in it and it sucks ----- But you're going to get through it and be back on top again. Keep that in mind when making decisions right now.
OK SO LET'S GET TO THE GOOD STUFF
- Keep up your credit rating - this will serve you better than almost anything else.
- Without it, you'll pay higher deposits on utilities, rent and almost everything else.
- For rentals, you may not even be able to get any - and if you do, you'll pay huge deposits
- .You'll pay higher interest on everything - credit cards can change interest rates without notice.
- Employers now check credit reports as part of background checks - they do not always give any chance to explain
- Consider what gets reported on your credit report - House payments, credit cards, car loans, installment loans, student loans. These come first - food, utilities, homeowners/space, insurance later.
- For medical bills, work out a plan. Hospitals have to. Most doctors, dentists, audiologists will as a courtesy - Just don't let them go into default or judgement
- Try not to say you're in crisis to creditors - this just puts them in a panic and makes it harder to get extensions, additional credit etc. If anything usually position yourself as about to get or create a new opportunity. Which you actually ARE.
- Try not to let anyone reporting to a credit agency know that you're unemployed - just keep saying you work at the last employer on applications you have no intention of acting on e.g. timeshares, expensive cars, land in Mexico etc.
- That said, SOMETIMES you do have to say you're in crisis -
- Close friends and family? Maybe - be cautious but face it if you need a loan, you're pretty well going to have to come up with something. It's not a bad idea to at least write an email setting out the expectations and agreements - For example, you'll pay it off all at once in 3 months. Or you'll pay a little each week. Plus the total amount to be repaid. All this makes it all more business like and gets around that crazy crap that people get into - esp families. Hey, we've all had family who escalated a $600 loan to $6000 over the years, right? Really? No? Even better reason to do this so it does NOT happen to you.
- Others include emergency rooms, hospitals, medical providers, agencies who can help you with housing, medical, food, utilities, emergency grants, jobs, referrals. These almost all have some kind of requirement for serious need -
- You're going to need to be a lot more humble. This is hard for most people.
- You do not have to beg but you are probably going to have to show documentation of some kind - income, unemployment, alimony, child support, mortgage/rent, utility bill, lease.
- That often feels invasive - think of it as getting a loan or mortgage. It'll still annoy you but it'll be eaiser.
- One of the shockers is that you'll find out that "welfare" isn't just giveaways like it's usually presented by politicians.
- Actually as a taxpayer, you are not necessarily entitled to help. Remember all that talk about true Americans working and handling their problems independently the community? Yeah, um, sometimes that works and - as you're discovering - sometimes not.
- Due to extreme and - it must be noted - draconian budget cuts, people who do need help - have actually been cut off in many programs. Now there usually has to be an extreme need. Applicants have always had to proved they needed help - but now the guidelines are far more narrow.
- The other shocker is how many non-losers there are needing help. Applicants who are as normal as you - who clearly are competent, good, hardworking people. That's not such a bad thing to find out - think about it next time you go to the polls
- "Social Workers" or "Case Managers" are more like leaders than customer service. They do tend to be ridiculously helpful and dedicated - but it's not really a customer thing like your insurance agent. They work hard but have to follow some serious eligibility guidelines.
- I saw this so that you do not have a problem saying "I really need help". They can help you far better if you can say, "I can't pay my rent, I have no food, I have no gas for my car and I can't pay my electric bill". OK, you don't have to say ALL that - I'm just trying to encourage you to be more open than most people are used to being.
- If for whatever reason, you don't qualify for that program - ask where else you can get help. Do not be proud on this.
- If it makes you feel better, they all have confidentiality requirements - similar to your doctor - sometimes even tighter - None of this is going to be broadcast.
- Act like a winner.
- No matter what's going on, put on decent clothes, wash and clean out the car, make sure your hair and nails are clean,
- Carry a neat folder or binder with your needed documentation as well as another one to put pamphlets and information in -
- Make sure your phone is charged and be available,
- Use a calendar to track what's needed when for the next 3 months - by doing this, you'll not only give yourself more time, you'll make better decisions and feel less overwhelmed
- The person with the most options has the most power - So create and grab the options that work best for you.
- All winner have a team behind them. Coaches, fans, trainers, sponsors. They are carefully selected and recruited. You do this too. Find them, use them, appreciate them. They'll show up in the most unusual ways and places. One day soon you will be on their team - and you'll pay all this back then. Real winners know this secret - now you can too
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