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Giving financial advice can be difficult when people are facing a challenging situation. Often, we are focused on issues at the same time, and it can become almost impossible to keep basic practices in sight.
Summary: Once a priority for venture capital firms and corporate initiatives, diversity, equity, and inclusion (DEI) startups are now struggling to secure follow-on funding. Investment in DEI-focused companies has dropped significantly, with follow-on funding declining by nearly 60% since its peak. The shift is driven by investor skepticism over ROI, broader economic concerns, and political backlash.
Challenge Times Can Happen for Many Reasons
Whether the economy is good or bad, we are likely to face challenges. Loss of a job, illness (yourself or a family member), poor investments or mismanagement of resources can lead to stressful financial situations. Sadly, people face these situations every day but often don’t have a clear roadmap for how to mitigate these risks.
One of the ways to cushion the blow is to have a well-rounded philosophy for your credit and wealth plans. The credit system we follow is the Ten Credit Building Commandments, which teaches you to use credit as leverage. The goal is to leverage high credit scores to decrease interest rates and reduce the time it takes to get rid of debt. Being “lean and mean” in challenging times helps you navigate them better than a person who is carrying heavy debt.
The other philosophy we follow provides an overarching financial growth approach called the RECIN© wealth system. This proprietary system was developed from our work with over 25,000 clients. We’ve learned that the best way to insulate yourself from financial challenges and to strive for financial freedom is to LEARN the components that lead to wealth - with a roadmap for implementation.
A Great Plan Mitigates Risk
Much like an athlete gets coached to improved, so should your finances. A well-rounded approach needs to include a mix of several wealth components: real estate strategies, credit and funding mastery, income protection via insurance strategy and multiple streams, and sound investments and/or investment decisions. The final component is a network that supports you and understands how to improve net worth!
Credit plays a critical role in the implementation of any wealth plan. When it comes to optimizing your credit, here is one basic practice that everyone should implement – keep your FICO® scores high so that you have options! The increased expense from high interest rates can rob you of your ability to save. Savings can “save you” when there are fluctuations in the market – or in your income. It can also create an inability to fund your progress and future goals. In volatile markets, lenders do not want to take a chance on someone who looks risky.
The other wealth principles are equally important. Income protection through insurance should provide protection not only for your beneficiaries but should provide living benefits as well. Income can also be protected through assuring you have multiples streams of it – whether that involves entrepreneurship, cash flow from real estate, or income from other investments.
Take the time to learn more about the strategies that you can best implement. This can reduce feelings of uncertainty or feeling financially overwhelmed. There is no shame in going through challenging times. The shame is in not preparing yourself for them.
Lisa Gavin
Next Level Coaching
Visit us at:https://coachedtowealth.com/hub
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