Bouncing Back From A Financial Disaster

You may not have thought it, but pretty much everyone hits some kind of unexpected financial disaster at some point in their life. Sometimes, this can come from a simple stroke of bad luck. Our stocks can plummet, we can be let go from our jobs, or a medical emergency can throw everything in the air. At other times, it’s something we bring on ourselves, through a failed business or investment. While bouncing back from these hard times is certainly tough, it’s not impossible. Here are a few pointers for overcoming your financial crisis.

As with a lot of big challenges in life, your first step to bouncing back from your loss should be adjusting your attitude to the whole situation. Losing a large amount of money isn’t fun. In fact, in a lot of cases, it can push people over the threshold into depression. While it’s understandable that you’ll feel extremely dejected after a financial disaster, wallowing in this feeling isn’t going to do you any favors. You need to adopt a more pro-active attitude, and face your problem head-on. Instead of seeing it as the tragic end of something, treat it as an opportunity for growth. Think about where you went wrong, and make a point of learning from your failures, rather than dwelling over them. As that old saying goes, “there’s no point crying over spilled milk.”

My next piece of advice is more a warning: don’t make things worse for yourself! When a lot of people hit a financial rough patch, they naturally start to panic, and can end up clutching at straws or making rash decisions in an attempt to recover from their financial hardship. Yes, you shouldn’t just sit around, and trying to gain a better understanding of your personal finances will certainly help you in the long run. However, you should approach any promises of a quick fix with extreme caution. When you’re looking for an emergency funding source, you’ll certainly be spoiled for choice! We all run into money problems here and there, and in recent years this has given rise to people who are prepared to take advantage of this. Payday lenders and credit repair services are everywhere these days. Although you might find one or two diamonds in the rough, be sure to approach these kinds of businesses with extreme caution. A lot of them are scams, and bleed even more money out of people who really can’t afford it.

Next, have a look over your personal budget, and pick out areas where it may need revision. If you want your financial future to be a little brighter, then it all depends on what you can do in the present. If there’s one cornerstone to a good budget, it’s having a decent cash cushion for those rainy days. However, if you’re struggling with money as it is, it can obviously be a little hard to stick to a savings plan! It will be hard, but make sure you’re thinking about the future. In a lot of cases, going through a financial crisis can have the positive off-shoot of shunting you into a more solid personal budget. Make sure your new one is going to include a savings plan. Even putting $60 a month into a healthy savings account can do a lot to keep you on track for the next time life pulls the rug from under you.

Finally, if you’re reading this because you lost your job, then make getting back to work your number one priority. The obvious reason here is that having a steady stream of income will help you to get your personal finances back on track. Aside from that, when you have somewhere to be and tasks to complete, it can be a great booster to your self-esteem. Despite what my can-do tone in this post would suggest, I despise job hunting. There’s nothing worse than scouring every source you can and tailoring your cover letter for each individual position, only to get rejected time after time. Although it’s daunting and frustrating, finding employment when you’ve fallen on tough times can certainly be done. If the jobs in your particular field are particularly sparse, then don’t be too proud to take something a little lower-paying. It doesn’t have to be your future career; just a means to an end. The lower prestige and income won’t last forever. Furthermore, your future employers will be well aware of the various financial challenges that everyone has to face here and there. Don’t think that taking a step down will be a crippling stain on your resume!