Overcoming Financial Setbacks and Bouncing Back Stronger – Top Tips

Overcoming Financial Setbacks and Bouncing Back Stronger – Top Tips

For many, the events of the Covid-19 pandemic, the lockdowns and the subsequent financial hardships with significant price increases, all of which were in part exacerbated by Brexit and the war in Ukraine have represented a significant financial setback. This is something that has not been seen for many years. 

There have, however, been financial setbacks in the past. How people dealt with these can, in part, help us when it comes to considering how we can overcome the current issues and bounce back stronger. 

It is estimated that around 75% have experienced at least one significant financial setback in their lives. However, the majority of these individuals have managed to turn their finances around. 

The most common financial setbacks

Market losses account for one of the single biggest financial setbacks anyone might experience. However, high on the list of other financial setbacks are not earning as much as you might expect, loss of job, supporting family members, making bad financial decisions, divorce, and even illness.

Ways to recovery

There are, fortunately, a number of different ways in which you can help yourself along the way to overcoming your financial setbacks. 

  • Time – no matter which financial setback has befallen you, remember that it will take time to bounce back. Recovering from financial problems is not something that will happen overnight. Give yourself plenty of time and remember little steps will give you big results if you follow them. 
  • Look at your spending – the most important first step when you have had a financial setback is to take a good look at your spending. Look at what you have to spend out on and how much – your mortgage or rent, your bills and your food. These are your needs. Then you can consider any wants that you might have that fit into your residual money. Remember you do not need all of these, so cut those you can manage without. This will allow you to build up your savings. 
  • Save more, better – Look at ways to change your savings behaviours. This means cutting out unnecessary spending and even considering a savings account. This will give you a better saving rate that will help your money grow faster.
  • Find more income options – It seems obvious, really, but one of the quickest ways in which you can overcome your financial setback is to find new revenue streams. Consider what abilities and skills you have and look for something that will allow you to put these to good use. 

Seek the advice of a financial planner

Finally, someone with plenty of experience in financial matters will be able to take a good look at your finances. They can see where you might be going wrong. Also, they will be able to give your advice on other things that you might be able to do to help your finances bounce back. 

Bouncing back will take you some time, but it is possible if you put your mind to it. You can learn from the issues that got you into this position in the first place. That way, you can make sure that they do not happen again. 

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