Episode Transcript
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Speaker 1 (00:00):
Hey, welcome to the
Position Podcast.
I am your host, kimberly Knight, and today we are going to talk
about some of the things youcan do to prepare for what is
about to come.
We know that we've been hearingcalls for that a recession is
coming, that there are somedownward economic shifts coming
and we need to be prepared, buthow do you prepare?
(00:21):
Today, we're going to talkabout just that thing, and this
is not financial advice.
Please do consult your own taxpreparers and financial advisors
for financial advice.
I just want to make sure thatyou know what questions to ask
and how to begin to prepare.
So one of the things I want youto consider is that the
Proverbs 31 woman was not afraidof snow for her household.
(00:43):
Why?
Because she was prepared right,so she couldn't stop the snow
from coming, but she could keepthem from getting cold and wet.
So I want you to prepare soyou're not cold and wet.
You know metaphorically.
So the first thing you're goingto consider doing in order to
prepare for any coming economicdownturn or recession or
(01:05):
depression or whatever way youknow finances twist and turn in
the world is you want tomitigate the damage by having an
emergency fund.
You want an emergency fund Now.
The goal is to have three tosix months of living expenses
saved.
But if you don't have themargin to do that right now and
you know I can teach you how tomake some more money but if you
don't have the margin to do thatright now and you know I can
teach you how to make some moremoney but if you don't have the
(01:27):
margin right now to build a hugeemergency fund, you can save
some money here and there.
Be sure to set aside a littlebit out of every paycheck, a
little bit out of every clientpayment so that you set aside
something in case of emergencyLike grandma would said, it just
might happen to you fund.
Come on, come on right.
(01:47):
We know some of us were onlyone popped tire away from having
to go for a payday loan orsomething like that.
Come on, you've got to put awaythat emergency fund because
emergencies can and do happeneven to the body of Christ.
So get that done.
Start putting that money on theside, and don't just put it on
(02:09):
the side.
You want to put it in a highyield savings so that you can
get some interest on that moneyand help your money to grow.
Come on through, all right.
The next thing you want to do,in order to prepare for what may
be coming, or what changes maybe coming economically, is to
cut all non-essential spending.
Okay, so begin to review yourmonthly expenses.
(02:31):
Some of you don't know how muchit takes for you to live every
month, but you need to reviewhow much you've been spending
every month and cut things likeunnecessary subscriptions.
Cut things like impulseshopping or eating a lot of
takeout.
Got to go, gotta go, gotta go.
And right there you're going tosave some money that you can
put aside for your emergencyfund.
(02:51):
Come on, y'all.
Speaking of which, I just saidthat some of you don't know how
much it takes to run yourhousehold or how much you're
actually spending every month,because you haven't done a
budget and you're not looking atyour spending.
If you get it, you spend it.
So it comes in on the left hand, you send it out on the right,
but you don't know what's goingon with your money.
It is time now to compute yourendurance number.
(03:12):
Now, if you've been followingme for a while or you've been
one of my clients or one of mystudents, you know one of the
things that I love to do is tocalculate your exodus number.
And your exodus number is howmuch money you would need to
make in your business in orderfor you to leave your nine to
five job and live the way you'reliving right now.
(03:33):
So you'll be able to sustainyour lifestyle and leave your
nine to five job based on whatyou're making your business.
So that's your exodus number.
I also teach my clients tocalculate their John 10, 10
number.
Now, your John 10, 10 number isyour abundance number.
It's not how you're living,it's how you would like to live.
Come on y'all.
You know all the things thatyou dream of and you know I go
into that with my clients andI'm going to have some surprises
(03:56):
because I'll be working on thatwith some other folks soon.
But this is about how much youwould need in order to live your
dream life In the case of someeconomic downturns coming.
You also need to know yourendurance number.
How much money do you need tosustain yourself?
(04:16):
Just you know, with the bareminimum, if you didn't spend
anything extra, what do you needto do to endure that time
period?
It's not a forever thing, it'sa right now thing.
How can we survive and getthrough this without having a
complete come apart in ourhousehold.
You need that number, so thatdoesn't include anything like
(04:38):
extras, right?
That's no vacations, that's notthings like buying clothes and
shoes and, if you know, dealwith your emotions through
shopping.
Now is the time for you to getinto some therapy and deal with
your real stuff so that youdon't have to be a shopaholic it
looks at.
Do we really need all fivemajor networks or streaming
(04:59):
services?
You don't.
You can survive without them.
My gosh, you might actuallyhave to talk to the people in
your house.
I guess we'll have to do adifferent show about that, right
?
But yes, this is just yoursurvival number.
This is just your endurancenumber.
What would you need to endurefor a short period of time it's
not forever in order not to havea complete economic collapse in
(05:19):
your own household or in yourown budget?
Another thing you can do toprepare for any economic
downturn or recession is toinvest your time and energy into
new skills.
Right, you got to build newskills, and when I say new
skills, it may be somethingthat's non-traditional to you.
You want to make sure there areessential services.
There are some things that Idon't care how bad the economy
(05:41):
is.
They're going to be needed.
Healthcare going to be needed,tech skills going to be needed
for the rest of our lives.
Here is something that you maynot have thought about Repair
skills and trade skills.
And here's the thing about so.
If we have an economic downturn, when it happens, people will
not be buying new things.
They'll be repairing what theyalready have.
(06:02):
If you have the skill set to dothat, guess what you've got
Income, and you can also usethat for your own household,
right, which is part of yourendurance.
Come on, y'all this is somegood stuff, right?
So we know tech skills willnever go away.
They will always be needed.
All this is some good stuff,right?
So we know tech skills willnever go away.
They will always be needed.
The other thing, the otherendurance skills that you may
need, are things like sewing,canning, anything that helps us
(06:25):
to survive and thrive Car repairCome on, people are not going
to be buying new cars, okay,well, I mean they might, but you
know it's going to be nice tobe able to have that skillset,
not only for your use again, butalso so that you can use it as
a source of income.
Come on.
Another thing you'll want to doright away is to update your
(06:46):
resume, your CV, your LinkedIn,and invest your time and energy
into your professional and yourpersonal networks.
This is not the season for thelone wolf, I am telling you.
You are going to need yourfriends and family.
There is this song oh, what isthis song?
I need you to survive.
That's the season we'reentering, people.
So this is the time.
(07:06):
Make amends, have thoseconversations.
You need to clear up anymisunderstandings.
Take a look at your personaland your professional networks
and begin to invest time andenergy into them before you need
them for your time of endurance.
Come on y'all.
Keep your resume up to date,keep your LinkedIn up to date,
keep your professionalconnections and your
professional associations.
(07:26):
Give them some energy right now.
Because, guess what?
People are literally going towork and finding out when they
get to work that they don't havework right.
So they're showing up at theirnine to five and they find out
at 8.59 that they don't have ajob.
So you want to keep all thesethings in place, just in case
you need them.
I'm hoping that that doesn'thappen to you, but if it does,
(07:47):
you want to be prepared Again,this is not the season for the
lone wolf and this is not doomand gloom.
This is preparation.
This is preparation Again.
That Proverbs 31 woman didn'thave to be afraid for her future
because she knew who held herfuture.
And the person who holds thefuture is the almighty God, and
he is telling us to get ready.
(08:08):
So it would be for us to listenand be ready.
All right, the other thing youwant to do is pay down as much
debt as possible, because thelast thing you want to do if
there's an endurance season thatcomes, is to have to pay debt.
So pay down everything you can,everything with high interest
rates.
Pay it down.
Pay it off that money thatyou're saving by not going to
(08:30):
restaurant.
Use it to pay off your debt.
Use it to fund your emergencyfund.
Pay them off.
It'd be one less thing you haveto deal with financially should
an economic hardship hit yourhousehold.
And I want to encourage youagain.
This is not financial advice,this is just something that I've
seen in my own life.
Work.
Paying off the most highinterest ones for me worked very
(08:52):
well.
I'm paying them off firstbecause they're costing you more
, and as you free up that incomefrom paying that off.
Then you can double up onpayments on other things, and
that's what worked for me.
I'm not saying for you to do it, I'm just saying it worked very
, very well for me and helped meto really get a handle on debt.
All right, here's something elsethat you want to do just in
(09:16):
case, just to prepare right,just to prepare if we see an
economic downturn.
You want to diversify yourincome.
The Astes 11.2 says divide yourinvestments.
And if you read it in the newliving translation, by the way,
divide your investments amongmany places, for you do not know
what risks may lie ahead.
(09:36):
Whoa, I'm telling you, if therewas ever a time for you to
diversify your income streams,it is now.
Right now o'clock, this is notthe time to depend upon your
nine to five to fund yourhousehold.
You need to go ahead and makesure that you have multiple
streams of income, multiple waysof making money, before you
(09:58):
need them.
Get them in place.
And I am one of my favoritescriptures I believe it's second
Kings four, one through sevenand it says it talks about the
widow who the creditors werecoming to get her son, and she's
and she goes to the prophet.
And she says you know they'recoming.
You know my husband served youwell, but he's dead now and I
have no money.
(10:18):
And they're they're going tocome and take my sons away from
me in order to pay the debt.
And he says what do you have inyour house?
And she says I don't haveanything but a little bit of oil
.
He said great, go borrow somevessels for the oil, sell it and
use that profit to make moneyto support you and your children
.
Pay off your bills.
There it goes.
He says pay off the creditorsand use the rest to support your
(10:41):
household.
And here's the thing that weneed to do.
We don't know what risk liesahead, but we do have things in
our hand.
What do you have in your hand?
We have things in our hand thatwe can make work for us and
make income for us.
And again, we can use thatincome not only to sustain our
households, but also to pay downour consumer debt, especially
(11:05):
consumer debt, as well as fundour emergency funds.
Now, some of y'all can cook andright now you can do meals for
families.
Right, you could be like almostlike a private chef for
families.
When I was younger and I was asingle mom, I cooked.
Like every once month.
I would do dinners and I wouldpackage them family style and
(11:27):
you could come and pick them upand after work I would have
people order them ahead, pay meahead.
They had to pay me aheadbecause I needed the money in
order to get the raw ingredients.
I didn't have the money, but Ipaid my rent and sometimes my
children's tuitions and boughtsneakers and clothes, and all of
that with fried chicken money.
Right, fried chicken money.
(11:47):
There are all kinds of thingsthat you can do.
Can you do hair?
Listen, I'm looking for abraider right now.
Can you braid?
Make that money?
What can you do?
What can you do right nowwithout going back for a degree,
without having to go to anotherclass, without having to buy
anything too expensive, withouthaving to invest time class,
without having to buy anythingtoo expensive, without having to
invest time, energy and effortinto your new skill, because
(12:08):
you're learning some otherskills, right.
But I'm talking about makingsome money right now, this
minute, with what you alreadyknow and can do, with what you
already have the network for.
And I'm going to give you thechallenge to sit down and do not
leave that seat, do not answerthe phone, do not get on the
internet, do not check youremail, your texts or anything
(12:28):
else until you write down 15things that you can do right now
to make some extra money.
Here's the other thing I wantyou to consider.
Other thing about having theextra income and doing things
right now to make money is thisis the season that if you have
not started your business, ifyou have no side hustle, you
have not started a business.
(12:49):
You need to do it Now.
Right now.
We'll go as of the recording.
Right now, the tax benefitsalone would be beneficial to you
.
Right so now you can not onlyhave the income, not only have
another stream of revenue, butyou'll also have those tax
benefits that you wouldotherwise miss out on.
So, as of this recording right,things can change, but as of
(13:11):
now, it's a great way for you toadd to your family's income.
So please do so Now.
These are just a few ideas.
There will be some subsequentshows, because we need to talk
about this.
People, I hate to say it, butit seems like it is coming.
We may not be able to stop thistrain, but it doesn't have to
run over the top of us, we canget to the point that we can
(13:33):
ride the train rather than beingstuck under it.
All right, thank you so muchfor joining us today.
There will be more shows abouthow to prepare for what is
coming.
I will have some special guestscoming up, so stay tuned for
those announcements.
Be sure to like and tag andsubscribe so you don't miss a
thing, and share this with afriend, because we want to take
care of the people around us.
All right, until next time, bewonderfully blessed.
(13:55):
Bye now.