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How to manage a change in your financial life
With all of the changes that are happening in the world right now many of us feel like pulling the blankets over our heads and saying, "Wake me up when the world slows down". Yet even through we must honour these feeling, we need to learn to adapt to change and move in a positive manner.
Take, for instance, your investment portfolio which may have been hit hard over the last few months. Now is not the time to panic. It is a time to assess and discuss your portfolio with your investment advisor and chart out the best course for your future.
In times of drastic change, people often have a tendency to react too quickly or do nothing at all. Both are often a reaction to fear. It is difficult to take a slow, cautious and methodical approach to the change. But this is often what is needed.
Times of recession or a downturn in the economy can often yield opportunities for financial improvement. In the case of the average small business, changes made to streamline and improve productivity during sluggish times can be the very thing that will give them the competitive edge when times are more prosperous.
The ability to adapt to change in a positive manner requires respect and planning. Respect for those that are undergoing the change and planning to make sure the change will achieve the desired goals. People affected by change often view it negatively and will become fearful and react by resisting. This will only hamper positive and effective change. To be effective the benefits of change must be understood by all affected.
Planning is also important. Change should be implemented only after a careful diagnosis of the problem, review of the best options and assurance that the changes are aligned with the goals of the organization. Planned change should involve all levels of the organization and should be monitored after change has been implemented to ensure the desired goals have been achieved.
Despite the changes that are affecting our world right now we must remember we cannot hide or cover our heads. We must remember that change does not necessarily have to be negative. Planned change, implemented with your end goal in mind in a careful and thoughtful way, can bring positive results.
Sometimes change can be viewed a little bit like guiding a boat through a storm. If there is proper navigation, all of the crew works together, the captain steers into the waves and the ship will make it safely to harbour. Change can be positive. Change can be rewarding. After all, Darwin's principle is that the strong will adapt and prosper.
Joyce Smith is president of JA Smith & Associates Inc. Certified General Accountants and Certified Financial Planners. The firm offers financial and tax planning advice for both individuals and business.
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