Imagine having these economic conditions while having major life changes in your own life such as a divorce, loss of a family member, retirement, or job change. These changes are difficult enough, let alone during such unique and trying financial times.
If you are going through one of these changes, you know how difficult it is to deal with both life and finances. As a financial planner who also holds a Ph.D. that combines business and psychology, I have come to understand that there are three basic phases that you must understand to help yourself, your friends or your clients when dealing with a significant change. These stages are Reacting, Recovering, and Rebuilding.
• Reacting: The initial stage after a life-changing event. The focus of activity during this stage is dealing with the emotional reactions to the change. You may be dealing with loss, grief, stress, or just change itself. This stage is consumed by reacting to the change and looking back at the life before the change. You should focus on the emotional reaction to the change, look for areas of support in your life (family, friends, spirituality) and keep all major decisions (including financial) to a minimum.
• Recovering: The focus during this time is on your balancing act of looking back to the life you had, and looking forward to the life you will have. This is a challenging time because you may shift from reminiscing about your past to thinking about your future quite frequently. You and those around you can help by being sensitive to these shifts. Financial discussions can provide piece of mind and start a well-balanced consideration of your life and financial future.
• Rebuilding: The focus during rebuilding is on creating a new life given the realities of your situation as well as your values, priorities and goals for your future. Financial discussions focus identifying your life-related goals, then on creating, implementing and realizing a financial plan that can support your new life.
Please note that these stages are different for everyone and people can go back and forth. However, understanding these personal stages can help maintain the proper balance between addressing emotional needs and creating a new life and financial future.
For more information about Dr. Newman or his services, visit www.Financial-Change.com or call 661-310-0322.