Whether you’ve recently experienced a job loss, major emergency expense, economic crisis, or all of the above, you can start to recover from a financial setback today.
Life doesn’t always go according to plan. That’s often especially true when it comes to achieving financial goals. While we may not always accomplish everything we set out to do, the good news is that we can always salvage some semblance of our original plans and get back on track.
In fact, that’s what we want to encourage you with today! As painful as it may be, now is the time look back at your financial goals, see how they’ve been derailed in one way or another, and begin the process of resetting.
Plus, we have a fantastic resource to keep the encouragement going with our FREE 5 Day Money Boot Camp that you don’t want to miss out on!
Rather than just trying to pump you up, we want to equip you with some practical steps that you can take today to realistically restart your financial goals. It’s never easy to start back up when you’ve fallen course and lost steam. You’re most likely dealing with a lot of stress, loss, and frustration right now which is completely justified. But don’t stop there!
If your motivation tank is sitting on empty and your financial goals are way off track, know that you don’t have to remain stuck in that place. We’re going to help get you moving in the right direction and creating lasting financial habits, starting today.
How to Recover From a Financial Setback NOW!
1. Acknowledge and Accept
Unexpected expenses and the devastation of job loss can be stressful, depressing, and nerve-racking. When financial loss is experienced, we must get real with it by acknowledging its presence and impact on our financial plans and ultimately our life.
We then need to accept that what has happened cannot be undone but that we can move forward from it. Don’t fall into the trap of playing mind games with yourself, constantly obsessing over where you would be had the financial loss not occurred.
Tackle any emotions connected with a financial setback by listening to uplifting music, exercising, reading an encouraging book, getting outside, or venting to a friend. Don’t justify rash or impulsive spending for an emotional high. Such actions only put a bandaid on the problem. They feel good now but only add to your problems in the long-run.
2. Regroup and Adjust
The next step to recovering from a financial setback is to regroup by reviewing your financial plans and making adjustments based on the changes in your current situation.
Take some time to look over your plans, refine them, and really meditate on what you want to accomplish financially. Think about what life will be like when you accomplish what you set out to do in the first place. From there work backward and begin to create actionable steps.
Write down the answers to these questions to begin adjusting your financial plans after a setback:
- How much income will I be receiving?
- What expenses need to be paid?
- Can I eliminate any non-essential expenses to increase my cash flow?
- Am I able to increase my income through extra work or selling items?
- Can I stretch myself to reduce any of my current expenses (gas, groceries, cell phone bill, Internet, etc)?
- How much will I have leftover at the end of the month to apply toward paying off debt or investing for the future?
3. Start Today!
Acknowledging and accepting everything that went “wrong” is crucial. Regrouping and adjusting your financial goals is practical. But don’t get stuck endlessly in the strategy stage.
“Overthinking” is exactly as the word implies, “Thinking way more than is needed.” It should be recognized and minimized. Not only is overthinking inefficient, it’s also usually a manifestation of fear.
We don’t want to fail, so we stall, fiddle endlessly with our plans, and don’t start. We mull things over for far too long, hoping for the perfect plan or superhuman strength. If that’s what you’re aiming for, you’ll be waiting forever.
Instead, just take a few baby steps in the right direction and learn as you go. If that sounds like you, check out this great resource to help you get “unstuck”: Start: Punch Fear in the Face, Escape Average and Do Work that Matters by Jon Acuff.
In the book the author writes, “The starting line is the only line you completely control.” That’s such a simple and powerful truth! A lot of us are worried that we won’t finish our financial goals in the way we hoped or we’re filled with ridiculous excuses that hold us back from just starting again.
The important thing is to control what you can control. In this case, you can control the starting line (or the “restarting” line)! You and you alone have the power to choose to restart your goals today and start moving in the right direction.
You can do this!
Is that all there is to it?
We hope you feel encouraged to pay off debt, save for retirement, or fund that college savings account. Take action today!
If you want to go even further than the general steps we’ve outlined to help you recover from a financial setback, then let’s keep the conversation going!
We have a FREE 5 Day Money Boot Camp that offers practical steps to get your money management strategy back on track. In this free resource, we’ll share strategies and resources to help you:
- Develop a healthy money mindset
- Complete your financial audit
- Set your budget
- Learn to save and earn more money
- Learn debt payoff strategies and start tracking
For more inspiration, tips, tricks, and hacks to life on less, check out these resources:
How We Paid Off Debt of $67,630 in 16 Months!
How to Save Money on Groceries: the ULTIMATE Guide!
Make Money FAST with These 10 Tricks