Experiencing a Financial Crisis?

Here’s Why That’s a Good Thing

“Sometimes you need to get knocked down to know what your fight is.” -Chadwick Boseman

I used to be extremely bad with money.

Before I get to that and how I turned it around (and how you can too), let me share some grim data to ground the conversation because it’s clear that millions of Americans are in dire need of a financial wake-up call.

• Only 23% of Americans report carrying no debt (Northwestern Mutual)
• 60% of workers say their level of debt is a problem, and 19% of workers say it’s a major problem (Retirement Confidence Survey)
• 39% of Americans don’t have the funds available to handle a $400 unexpected expense (Federal Reserve Bank.)
• 48% of households headed by someone 55 or older had nothing saved for retirement (U.S. Government Accountability Office)
• 41% of Americans have not set aside any money at all for retirement (Freedom Debt Relief)

Grim, right?

Sometimes it’s impossible to guess who is struggling financially. Many of the most successful people, or so you would think on the outside, aren’t holding it together financially on the inside.

For most of my life, that was me. I secretly carried my massive flaw and blind spot with me everywhere I went.

For most of my college and working years, I buried my head in the sand about it. I developed an “I’ll deal with it later mentality” and the problem compounded.

Eventually, it overwhelmed me. It consumed me. It ate at me daily. I had thoughts like:

I’m going to die with credit card and student loan debt and someone else is going to have to pick up my tab.

I wasn’t alone: 25% of Americans expect to die in debt (Yahoo Finance).

I also had these conversations with myself:

• This isn’t a big deal. I bet everybody is dealing with this.
• Also, why do I feel like the only one dealing with this?
• I wish I had somebody I trust to talk to.
• I wish I could stop thinking about this all night and get some sleep.
• I can’t afford to get married or start a family anytime soon, even if I meet the right person.

I had a financial crisis on my hands. What did I do about it? Nothing. For almost a decade.

The side effects were compounding. I lost energy and day-to-day motivation. I lost confidence. I did my best to hide this, which sapped away more energy and confidence.

I became distant from friends and family, showing up places late or canceling plans last second. Part of it was because I didn’t feel like myself — my stomach was a knotted-up ball of anxiety — and part of it was because I couldn’t afford to keep up with anyone financially.

Eventually, I had my first panic attack while checking out at a thrift store when I learned their return policy was store credit only. It takes the smallest thing when you’re on the edge.

Most people don’t talk about money or what it feels like to be so broke, alone, afraid, and embarrassed. To lose all confidence. To lose sleep. To become distant. To grapple with anxiety for the first time. All because of money.

If this describes you, there’s hope. In fact, there’s a silver lining. A financial crisis might be exactly what you need.

I’ll come back to that.

It would be another two years before I faced the music, got organized, and figured out my net worth as a starting point. What I found out was upsetting, of course:

I had dug a -$75,000 net worth hole at age 32.

Finally, I shed light on the issue. It was bad, but knowing my numbers was step one. Knowing the truth motivated me to finally address my blind spot head-on and aggressively.

Part of me needed it to get as bad as it did. It forced me to face my deepest fear, look at myself in the mirror, and say to myself:

“Today’s the day. You’re going to get your shit together.”

I spent exactly a year OBSESSING over fixing my financial life. That’s the how. The why behind it? I wanted to become me again.

Fix it, I did. I committed to this mission hour by hour, day by day. I felt like a crazy person — but the good crazy for a change.

I channeled all of my energy, frustration, and anger into my one-word resolution: Money. It’s the only New Year’s resolution I’ve ever stuck with, even though I didn’t even have a concrete goal.

It was a lifestyle. It was a mentality. My mantra: Get good with money, get my life back. When I did, I instinctively needed to find a way to help others do the same.

I wrote a book about my year. I started a YouTube channel. I didn’t know what I was doing when I started those projects. Just like I didn’t know what the heck I was doing when I woke up on January 1st, 2018, and talked to myself in the mirror (hungover to boot).

All of this to say this:

If you are dealing with a financial crisis, it’s exactly what you need. If you are on the brink, fight back. Nobody is going to do this for you. Commit. Get resolved about it. Because you cannot fix your future in the future.

I don’t care how corny this sounds: look yourself in the mirror or journal about it and ask yourself a few tough questions:

• Can I do better?
• Do I want more?
• Am I doing enough for Future Me?
• Do I know enough to be successful?
• Do I feel financially fit?
• How would life be different if I was financially free?

I reached a massive milestone. On Instagram, I posted a graph of my net worth with this caption:

3 years. 1 month. 10 days

That’s how long it took me to go from -$75,000 to a positive six-figure net worth. If I can do it starting with zero money know-how, anyone can.

How did I do it? Relentless learning and doing 1 small thing a day.

Money doesn’t have to be complicated or scary to tackle. If you are where I was, you can change your life. Commit. Set goals. Read. Surround yourself with good people. And get resolved.

The best part? Finally feeling free to live fully.

Okay, it’s actually the better sleep

Plus, it gets easier from here. Or so I hear.

You. Can. Do. This. Too.

It was a dramatic post, to be fair. But this is dramatic. Transformations are extremely emotional. This transformation represented a relentless commitment to myself, and I followed through.

It is never too late to change your financial life. It is never too late to get resolved about it. To get out of debt. To make up for not contributing enough to your retirement accounts. To start an emergency fund and save your first $1,000.

But here’s a little secret about getting resolved:

It doesn’t have to be January 1st to set a year-long Resolution. You can set a 365-day resolution any day of the year.

There’s no reason or excuse to wait.

I didn’t intend to share my net worth publicly. But it’s the post I needed to read when I was 18. 21. 25. 30. Or even 32 years old.

I’m hoping this is what somebody out there needed to hear.

When I set out to write my book to share my story to help people I made a commitment that kept me motivated. I told myself (probably in a mirror):

If this book hits home and reaches one person and changes their life, the effort will have been well worth it.

To this day, I remind myself of this mentality every time I write.

I just turned a major chapter in my financial life. But I might only be one chapter ahead of you. How different could your life look if you get resolved and commit?

Other people coast their entire lives, saddled with debt and anxiety. But you… you still have a story to tell. You can still be the hero in your story.

Trust me when I say: A financial crisis is exactly what you need. It’s the hardest of times that make us the strongest. If it doesn’t make sense now, it will when you look back.

If you’re still feeling overwhelmed about starting, sleep on this. Sit with this story and your thoughts for a day. But tomorrow morning, when you look in the mirror, utter these words:

Today’s the day.

Always remember: the hardest part is starting. It gets easier from there.

You. Can. Do. This. Too.

Email [email protected] and reference this article if you would like free full access to my Save Money Resolution Course. You can explore a preview here. I’ve never offered this for free but I feel compelled to after writing this.

For more, watch the video version on YouTube video where I share more. You can also snag a free review copy of my newest book, “Money, You Can Hack It” here.

Frankie Calkins (M. Ed) is a Digital Marketing Manager by day. On nights and weekends, he’s an author, YouTuber, and finance course creator. He lives in Seattle, WA. Contact: [email protected]