This archive report was first published on 11 January 2020.
Recovering from Financial Setbacks ¶
Unexpected life events, such as high medical expenses or layoffs, can throw you off course financially. It's essential to have a recovery plan in place to help you get back on track.
Published on January 11, 2020
- Assess your situation to understand the implications of your setback.
- Consult a professional, such as a financial advisor, to put things in perspective.
- Consider your available financial resources, including savings, insurance, and emergency funds.
- Prioritize your essentials and cut back on luxuries.
- Beware of your emotions and find a support system.
- Talk to your creditors to come up with a more workable payment option.
- Create a new vision based on your current financial resources.
- Correct and adjust your money management skills.
- Perform periodic check-ins to review your financial plan.
As Laura Adams notes, 'Your ability to earn money is ultimately what allows you to build wealth. Your financial life will completely stall if you can't earn income.'
It's essential to focus on bringing in more income through side gigs or consultancy jobs and to always pay yourself first by saving and investing before spending or paying others.
