12 Ways to Pick Yourself Up After a Financial Setback

No matter how organized we are with our finances, we all experience setbacks from time to time.  Whether it’s an unexpected job loss, a medical emergency, or a spike in living costs, these events can leave you feeling overwhelmed and anxious about your future. We take a look at 12 strategies to help you recover emotionally from a financially and move forward:

Acknowledge Your Emotions

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It’s normal to feel a range of emotions after a financial setback, from anger and frustration to fear and shame. You may feel that you need to bottle up everything, but you should talk to a trusted friend, family member, or therapist. Expressing your feelings is the first step to boosting your confidence again.

Focus on What You Can Control

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While you can’t change the past, you can control how you respond to the situation. You should focus on the things you can do, like creating a budget, exploring ways to increase your income, and looking for available debt relief options. Taking action empowers you and reduces any feelings of helplessness.

Seek Professional Help

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Many setbacks can be small and manageable with the right focus, but sometimes, they can become too overwhelming. If you think that things have gotten too far out of control, you should seek professional help from a financial advisor or credit counselor. They can provide guidance, create a personalized plan, and offer emotional support during this challenging time.

Celebrate Small Wins

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The road to financial recovery is a marathon, not a sprint. Celebrate every small victory – paying off debt, sticking to your budget, or finding a new source of income. Recognizing your progress keeps you motivated and reinforces positive financial behaviors.

Adjust Your Mindset

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Financial setbacks, while difficult, can be an opportunity for growth. Embrace the chance to re-evaluate your spending habits, create a realistic budget, and develop a more secure financial future rather than solely focus on the negative aspects of your financial troubles. View this as a learning experience that will make you stronger in the long run as you learn from your mistakes.

Practice Self-Care

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Financial stress can affect your mental and physical well-being. When you’re experiencing financial difficulty, you should prioritize self-care activities like exercise, healthy eating, and relaxation techniques. Taking care of yourself will give you the strength and resilience to navigate the challenges ahead. You may be inclined to push on and say yes to every working hour you can, but you should take care not to burn out.

Focus on Gratitude

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Even during difficult times, it’s important to remember the things you’re grateful for, such as your health, your family, and a roof over your head. Gratitude can shift your perspective from focusing on all the things you don’t have and can boost your overall well-being.

Remember, You’re Not Alone

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Many people experience financial setbacks at some point in their lives, so always remember that you’re not on your own. Instead of isolating yourself, talk to supportive people or check out online platforms that specialize in financial recovery. Sharing your experiences and learning from others can be a source of strength, and you can find inspiration to help you get back on track.

Building a Secure Future

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Once you’ve overcome the worst of your financial crisis, you should focus on building a more secure future. Creating an emergency fund is one way to prepare for financial setbacks, even if you can only have a month or two’s worth of backup.  The ideal emergency fund amount depends on your individual circumstances. A good rule of thumb is to aim for 3-6 months of living expenses. This ensures you have a buffer to cover essential costs while you deal with the emergency.

Reduce Credit Card Spending

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It is easy to pop things on credit cards or buy now and pay later, but when it comes to paying off our debt, it can become difficult. Instead of using credit cards without considering how to pay your monthly bills,  save until you have enough money for what you need. You may feel low that you can’t buy what you want, but the long-term gain from being patient will make you feel good about yourself.

Make do and Mend

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Instead of throwing out ripped clothes or socks with holes, grab your sewing kit and make do and mend. This may take a while to get used to, but you will gain great satisfaction from the end product, and the act of sewing can be cathartic.

Meal Planning

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If you find you eat out a lot or order in because you have no food in the refrigerator, you may want to think about planning your meals at the beginning of the week and ensuring you have all the ingredients in stock. While eating out is fun and takes the pressure off of cooking, making meals can be relaxing and is a chance to bring the whole family together.

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