You Aren't Alone

On August 7th, at a client's request, we published a podcast episode titled "Making Financial Progress While Inflation is Kicking Your Butt." In it, I shared a common experience many families across our country are going through. Inflation is doing a number on us. For millions of families, the inflation we've experienced over the past few years has eroded most (or all) of the financial margin they've managed to create. It's scary, frustrating, and defeating.

This week, I spent time with this client for the first time since that episode went live. They jokingly asked if that episode had gone viral. While it hasn't necessarily gone viral, at least 15-20 people have mentioned that specific episode to me. Comments such as, "that hit a little too close to home," "I'm glad I'm not the only one feeling this way," and "I feel like you understand what we're going through."

All this feedback illustrates an important and powerful point. We aren't alone. While we often feel like we're dealing with genuinely unique circumstances, they are often slight variations of what others are experiencing. I say this to highlight the fact you aren't alone. If true, there are a handful of implications:

• You don't have to go through it alone.

• If others can do it, so can you!

• If others have done it, there are resources to learn and grow.

• Success isn't possible.....it's probable. We just need to keep moving forward. 

• There will be people who try to tear you down with a victim mentality.....

• .....but there will be people who try to encourage and support you.

I've experienced this first-hand over the past 15 years. When we were deeply in debt, I realized millions of others were as well. When I wanted to start a business, I realized millions of others had already gone down that road before me. When we struggled with fertility issues, I realized millions of others struggled as well. When we lost a child, I realized millions of others were also dealing with a similar pain. I wasn't alone, and neither are you.

With that in mind, don't be afraid to be open with others. With honesty comes support, and with support comes progress. Oh yeah, and never hesitate to hit me up if you need anything. I'd be honored to help. You aren't alone, and that's a beautiful thing. 

The Stock Market Is Melting....or Is It?

Per usual, there's been a lot of talk about how bad the stock market is. According to the prevailing narrative, it's "risky," people have lost a lot of money, and it's not wise to put money in it. Whenever I wander into these types of conversations, I always ask why people think that. Inevitably, the answer is some form of "because it's lost so much money." 

First, I'm not belittling anyone here. I understand perfectly well why people have this impression of the stock market. If you watch the news, they consistently report the big red arrows pointing down......but rarely show the big green arrows pointing up. It's doom and gloom. If it bleeds, it leads. 

There's also the reality that the 21st century has started a bit (er, a lot) rocky. Over the last 23.5 years, here's what we've experienced:

• Y2K

• Tech bubble burst

• Worst terror attack in US history

• Multiple wars

• 2nd worst recession in US history

• Housing market collapse

• Global pandemic

• rampant inflation

• 4 stock market crashes (-46%, -54%, -32%, and -25%)

Pretty insane, right?!?!

So when people feel like the world is melting and the stock market is an absolute disaster, I get it. But what's the truth? Through all that, over 23.5 years, the stock market is up 6.7% per year. If you would have invested on 1/1/2000, your money would be worth 4.6x what it started as. You more than quadrupled your money. Re-read my list of chaos above.....then digest that the market has gone up 4.6x through all that. Crazy, but true!

Perspective matters, as I love to say. Our world takes simple, practical, and effective ideas, and perverts them into urban legends and half-truths. Truth matters, but there's so much noise in the financial world that it's hard to see it sometimes. 

Whether you're investing in your work's 401(k)/403(b), your IRAs, or other types of stock market investing, remember this concept, and don't lose any sleep at night! In the world of meaning over money, losing sleep over investments is not leaning into the meaning. You got this!

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Yesterday, we released a podcast episode about the same topic. If you have a friend who enjoys reading, please consider passing along the blog post. If you have a friend who enjoys listening to podcasts, please consider the same. You can find it on Apple, Spotify, or wherever you listen to podcasts. 

Note: The figures mentioned above are based on the S&P 500 and include the reinvestment of dividends.

Sometimes Surviving is Thriving

We’re in the middle of a tough financial season for many. Between groceries, fuel, vehicles, and housing, inflation has been squeezing people from all sides. I’ve talked at length about this topic on the podcast, but I like to categorize people into three different groups:

• Group A: They have quite a bit of financial margin in their life. Though they see inflation is happening, it’s not making a significant impact on their day-to-day life.

• Group B: They had some margin in their financial life and are really feeling the impact of inflation. Not long ago they were making swift progress, but now most (or all) of their financial margin has been squeezed out. They are making ends meet, but many of their wants and savings have been paused.

• Group C: They had little to no financial margin in their life. They were struggling to keep the train on the track even before inflation struck. Now, they are experiencing profound pain and chaos.

Most of us live in little vacuums. We live our own unique lives and base our perceptions of the world on a sample size of one: ourselves. For the members of Group A, this causes many to lose sight of what’s really happening to people in Groups B and C. They aren’t trying to be insensitive or dismissive……they often don’t know what they don’t know.

Here’s where I’m trying to land the plane. Members of Group B also have a blind spot. While watching their margin melt away and lose momentum, they are looking in the mirror and wondering what they are doing wrong. What they don’t know is so many others are having the very same experience. The walls are slowly closing in, and they think their own failure is the cause of it. I’ve had multiple client conversations around this topic recently. My motto has become, “Sometimes surviving is thriving.” Everything is a season, and for some, this season is about getting out alive.

However, it all comes down to your definition of “surviving.” Based on the looks of this recent article, more and more, people are turning to their credit cards to keep the train on the track. Credit card debt just hit an all-time high, and we’ll soon hit an outstanding balance of 1 TRILLION! Yikes!

In my book, “surviving” looks a little different. It looks like navigating from month to month without incurring debt. It looks like overcoming medical, car, house, and other emergencies without wreaking havoc on your life and marriage. It looks like prioritizing your values and holding onto the things which add the most value to your life (and perhaps letting go of the others). It looks like keeping momentum toward your aspirations (even a forward crawl is better than standing still or heading backward). And it looks like waking up every day with meaning and purpose. It’s not perfect, and it’s often messy, and it’s far from easy, but it’s worth it. If that’s you, I celebrate you and what you’re trying to do. It doesn’t always feel great, but you’re doing far better than you know!

You got this, guys! Sometimes surviving is thriving!

Inflation and the Projection of Circumstance

The elephant in the room for the last year has been inflation. If someone didn’t know what inflation was before, and certainly never talked about it during the course of their day-to-day life, that’s probably changed. Everyone now has thoughts and feelings about inflation. Inflation is everywhere. We see it when we go to the grocery store, when we put gasoline in our vehicles, when we go out to eat, when we purchase vehicles, and in pretty much every other area of life (well, except for Costco hot dogs and Arizona Iced Tea).

I’ve watched a certain phenomenon play out in many areas of life for years, especially as it pertains to work and money, and the recent inflation conversation has shined a spotlight on it. Everyone seems to have differing perspectives on inflation, and they vary wildly. Now one would think their perspective would be correlated to their education and/or area of expertise. However, that’s not the case. Their perspective is more closely tied to their own experience with inflation. In other words, they are projecting their own circumstances into the broader discussion.

As I see it, and as I walk alongside several families in my coaching, most people fit into one of three different groups when it comes to inflation:

1) Lots of Margin - These people had lots of margin in their financial life. Recent Inflation has reduced their margin but they haven’t had to sacrifice much. Their basic needs are easily met and they can still buy pretty much anything they want. Instead of going on three elaborate vacations this year, they may only do two.

2) Some Margin - These people had some margin in their financial life. Recent inflation has significantly reduced or eliminated their margin. The result of this is a profound alteration in their life. They have decreased or halted their saving/investing, given up some of their wants, or have become quite intentional with their basic needs.

3) Little-to-No Margin - These people had very little margin to begin with, if any, and are now being absolutely crushed. Just putting food on the table, gas in their car, and a roof over their head have become a constant battle. Second (or third) jobs and credit cards have become a means of survival.

These are the lenses through which people see and experience inflation. It makes a world of difference. This isn’t my attempt to condemn anyone or make people feel guilty. Rather, I want to shine a light on this idea of projection and perhaps we can be more empathetic to other people’s journeys. We need to see past our own circumstances if we hope to understand what others are going through. Or even better, if you’re in group #1, find ways to give a financial hand-up to someone in group #2 or #3. This is a season - a tough season - that we all just need to get through. And there’s no better way than to get through it together.