5 Ways You Can Bounce Back From Financial Disaster

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The COVID-19 pandemic has been cruel both to people’s health and finances. Even now in 2021, a lot of businesses and individuals are still reeling from the global economic crisis that took the world by storm when the pandemic hit. It’s reasonable to feel as though there’s no end to your troubles, but you can take comfort in the fact that this isn’t the worst hit the world has ever taken.

Many people have recovered from more discouraging financial situations. What’s even better is that these people and their experiences make it possible for you to turn your situation around using the exact methods they used.

Here are some proven ways worth trying to bounce back on your feet in 2021:

It is What It is

You’ll be miserable for a time. That’s expected and acceptable, but only for a while. At some point, you have to accept that it is what it is. You may have made poor decisions, bad investments, and failed to taken preventive actions. Maybe it wasn’t even your fault and you simply fell victim to another person’s wrongdoings. The cause of your troubles is clear and uncontested. After that, what? Accepting what happened and deciding to be proactive is the only way to move forward. Unless you acknowledge your current financial crisis, there’s no way you can make the decisions that are right for your current situation.

You can be optimistic, but don’t overdo it that you end up making disillusioned calls on your remaining assets. Part of embracing your present reality is learning from the wrong moves that took you there. If it takes journaling, finding a counselor in Atlanta, or maybe consulting with a licensed financial advisor, then, by all means, do so.

A financial advisor, of all people, is one of the most qualified persons to help you make an inventory of your resources and liabilities. It’s essential for you to have a clear idea of these two aspects of your crisis so that you can create a realistic recovery plan.

In assessing your situation, you have to know how much money you owe and spend. What are your regular sources of income and what is your credit score? You’ll want to know all these things and more before you proceed with any action plan.

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S.M.A.R.T. Goals

No plan is ever worthwhile without setting well-defined goals. It’s possible that you’ve set some before but you weren’t able to achieve them. Oftentimes, the problem lies in either or all of three things: your action plan, your persistence, or your goals. It wouldn’t be surprising at all if it were the last one, since a lot of people are unfamiliar with how it’s properly done. To simplify things, the S.M.A.R.T. method was made.

Specificity is the heartbeat of a good goal. Don’t just say that you want to make money. Indicate how much, through which source, and by what date. The more specific you can get, the better.

Measurable goals are possible goals. You should be able to easily monitor your progress by setting smaller goals. This way, you’ll know whether you’re on track or you’re straying.

Attainability is perhaps where most people make the biggest blunder. There’s a difference between challenging yourself and setting yourself up for failure. An attainable goal is a fine balance between forcing you to step out of your comfort zone while still being possible to achieve.

Realistic goals are those that don’t call for you to dream up a multi-million dollar company and limitless revenues within a year.

Time is of the essence in goal setting. You’ll have to create deadlines that will push you into action every morning.

Bridging the Gap

Charting the path that will connect one goal to another is such a critical step in financial recovery. It’s not just about getting from Point A to Point B. You have to choose among the many paths that will get you there. Perhaps you think it’s okay to focus only on paying your debts. That will be fulfilling only in the first few months, and then you’ll slowly feel discouraged because the money is always flowing out.

You can prevent this by mixing in a couple of investments, no matter how small. It could be your savings, insurance, or your retirement fund. No matter how determined you are to get out of debt, it’s best that you also keep your motivation up throughout the journey.

Follow Through

Perhaps, next to step one, following through with your plans is one of the most difficult parts of financial recovery. This is the part where you hustle as best as you can, and if you push through the tougher times ahead, bouncing back won’t seem impossible anymore.

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