Part 7: Keeping a Positive Focus on Finances

[Part 7 of 12 in a series on How to Turn Your Financial Goals into Reality.]

Your financial goals have been carefully considered and set. A logical plan to achieve those goals is in place and has been working well for a period of time. Nothing could possibly go wrong now, right?

At some point, everyone will experience a financial setback. How we deal with negative circumstances will be a significant determinant in our financial success or lack of it.

When a financial setback occurs, people either respond pessimistically, leading to fear and ill-advised reactions, or optimistically, leading to a calm and objective return to the original goal.

Fight Fear and Inaction

Fear and anxiety manifest themselves in the decisions people make regarding financial planning. Fear often pressures people to engage in unsound financial investments, such as get-rich-quick schemes or taking on debt as “solutions” to a problem. Others simply become frozen with inaction and just give up, making no attempt to re-establish their financial goals.

The antidote to fear is positive believing. People who keep a positive focus on life and finances:

• Exhibit confidence in themselves and their future
• Demonstrate the ability to solve problems rather than worry about them
• Maintain hope and encouragement as they confront negative situations
• Determine a logical course of action in overcoming a financial setback

View Setbacks as Temporary Events

The optimist sees a setback as temporary, while the pessimist sees it as permanent.
For example, if an expected outcome failed to materialize and you think of that as being a short-term setback, you would be applying an optimistic positive focus. The pessimist, on the other hand, views such an incident as being a consistent problem or personal shortcoming that permeates every area of his or her life.

Simply refuse to view a financial setback as being in any way permanent or a result of personal failure.

Revisit Your Financial Plan

A short-term problem should never de-rail your financial goals as long you maintain a positive focus. Depending on the severity of the problem, however, a calm and rational review of specific financial objectives may be necessary. Never make changes to the plan purely as a result of an emotional reaction to the situation.
Remember, the financial plan is your roadmap to reaching financial goals. Be sure to consult the map periodically, whether or not you’re dealing with a problem. Occasionally, a minor change or two will be necessary in order to get things back on track.

Take Control of Your Thoughts

Negative circumstances tend to unearth fear and insecurity in many people, causing them to doubt their ability to live prosperously now and in the future. Maintaining a positive focus will increase confidence in your ability to rebound from a financial setback and provide a feeling of control and influence in the situation.

There are many theories as to how one keeps a positive view in the face of negative events, but ultimately it is a choice. You decide whether to approach life as an optimist or a pessimist. The positive choice is the path of prosperity and health.

Dale A. True, Registered Investment Adviser
True Financial Strategies, LLC
October 2008

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