How To Motivate Yourself To Financial Recovery
Few people have been immune to financial hardships in recent times, with the pandemic testing the livelihoods of many.
Late last year, Forbes reported that 3 in 10 households used up all or most of their savings during the pandemic, according to a survey at the time. Of course, the figure would no doubt rise higher when considering those who have experienced a substantial dent in their finances too. There are no doubt millions of people today who are on the verge of serious financial hardship, and many of them may not yet see a way to turn things around.
If you are undergoing significant financial stress during this time, then it is important not to be without hope. Here are some of the things you can do that may motivate you to get back on the path to financial recovery.
Once real despair creeps in with financial concerns, it can be tempting to resign yourself to a fate of misery. Try not to.
Instead, nurture a proactive attitude. For instance, if you were recently laid off, try to look for another job at the earliest opportunity, or at the very least attempt to secure unemployment benefits. Any source of income is good, so long as it helps you in keeping a roof over your head and putting food on your table. Time is of the essence so remember your priorities here – you can worry about careers and securing more gainful employment later.
Once you have some level of income, more options will be unveiled to you. For instance, you could invest, save, start squaring away debts, or do a combination of the three should your earnings allow. Ultimately, the best thing you can do is to try and ensure that your own personal cashflow never stops and to keep the dollars rolling in.
Consult Different Sources
If you are undergoing a fresh restart with your finances, it may be a good idea to brush up on your rudimentary skills in money management. To do this, you should explore a wide range of sources.
Consult Tally’s guide to late payments for a comprehensive breakdown of how this can all affect your credit reports. Their feature titled ‘How Long Do Late Payments Stay On Your Credit Report?’ explains everything from consequences to how to dispute late payments and delete all traces of them from your records. They do not miss a step, and if you read their article, then neither will you.
Resources such as these should help you stay on track with your payments for as long as you desire. Take your time exploring their in-depth offerings, and you will be equipped to put yourself in a healthier financial position moving forward.
There also plenty of government pages that can spur you on with financial guidance, as well as a plethora of links right here at Personal Finance Advice to help you in specific circumstances also. By pooling expert guidance from a wide range of online literature, you should be better equipped to tackle any monetary challenges that come your way.
Do Some Wider Reading
Whether you are seeking cautionary tales as a means of motivation or reading about ‘rags to riches’ stories, either option can help you make some headway in your financial perspective.
After all, people have been in trying financial circumstances before and bounced back. Others squandered all their opportunities and drove themselves to the brink of bankruptcy. Wherever you land in these equations, there are many lessons to be learned from the plights of others.
Still, in the end, it is vital to realize that it is never too late to make a change, or to recover and lose everything all over again. Win or lose, your situation is temporary, and knowing that well might motivate you enough to stay on the right side of that line more often. Who knows, perhaps other people’s initiative will stoke the flames of your own?
Avoid Dubious Behaviors
If you are not responsible with your funds, it can all be taken away from much faster than you earnt it all. During a period of financial vulnerability, is especially important that you are on your best behavior also.
You can avoid dubious financial behaviors by doing any of the following:
- Restricting yourself to a budget: Eliminating excessive and non-essential spending can go a long way to increasing your financial prospects.
- Accessing your emergency savings: After a good while spent working, you should have hopefully been safely stashing a small percentage of your earnings into a savings account. Now you are experiencing challenges, now could be the opportune time to use it.
- Going the extra mile (where possible): You could pay your bills well in advance of their due dates or exceed the minimum expenditure on your credit cards. These options should stave off the chances of any additional financial woes.
Sometimes, it can be easier to avoid poor financial habits by making a concentrated effort to uphold positive behaviors instead. That way, you greatly reduce any risk factors in your financial management. There is no need to make your situation any worse than it already may be, so fight for small and big monetary victories wherever possible.
Sadly, even actions taken with good intentions can come back to bite you where your finances are concerned.
For instance, if you are frequently lending your adult kids money, then it may be time to press pause on this support for now and to prioritize your own financial needs. Of course, you may find cutting the money cord to be difficult, especially if your children are struggling themselves, but it could be the right step to take if you desperately need your money and your child is not financially responsible.
Recognizing when to help others and when to step back can be challenging, especially if you are supportive by nature. Your restraint can be a temporary measure, if necessary, but all the same, it could be a good idea to recognize when you are able to give help, and to reevaluate whether those you are offering it to are deserving of your input. In the end, you cannot fix your own financial problems if you are busy fixing other peoples.
Create a Support Network
Financial problems can be an extremely isolating affair, so it is incredibly important that you surround yourself with an abundance of support and encouragement.
Hopefully, you will have some people in your life, whether they are friends or family, who will sit with you and give you company. They will all have some experiences of managing finances with their own, so you can at least tap into the guidance of those around you in some capacity. Perhaps they have faced hardship before, or are aware of others who have? Their words can be comforting.
If you are lucky, some of your loved ones may even be accountants or financial advisors, and thus lend you elements of their expertise. If not, you can hire some professionals of your own, if you are able, and consult their guidance at will. While some people can feel compelled to keep their financial situation a closely guarded secret but sharing with the right individuals can be an immensely helpful experience. Ultimately, with the backing of others, you will pull through with your finances.