How to Recover from A Financial Crisis

Updated: Apr 4

A financial crisis can take many forms – a layoff, an unforeseen medical expense, a change in family circumstances, or even a global pandemic.

The uncertainty that comes with a crisis tries your patience, faith, and confidence. Besides taking a toll on your mental health as a working woman, these events can ruin your finances.


You may believe that you can’t bounce back from your situation, but many have walked this path before you.


We at Elevate Financial Services are here to tell you that recovering from a financial crisis can be difficult, but POSSIBLE.


Regardless of what caused your financial setback, the following practical steps will help you start the road to recovery:




Tip #1 - Know That You Are Not Alone


You may be adjusting to the reality of living off benefits or struggling to pay basic expenses due to a job loss. Whatever your situation, is it may feel overwhelming to even think about it.


Money problems can often make you feel isolated and introduce feelings of incompetence. You may ask yourself, “why me?” over and over again.


The first thing to know is that more people than ever face serious financial difficulty.

The problem is that we live in a society where people would rather share their wins than their losses. Many people avoid talking about their money problems, so they hide them.

Everyone is struggling with similar problems, and if you seek help, there is a wellspring of emotional support available.



Tip #2 - Take Full Responsibility for Your Situation


A financial crisis can indeed be frustrating, and blaming your circumstances on external factors can be the easiest thing to do.


While it might make you feel better in the moment, passing the blame on won’t help you recover your losses.


You may be a victim of somebody else’s wrongdoing, but you’re the only one who can fix the situation. So, instead of wallowing in your misery and wasting your precious energy, take responsibility and work towards solving the real challenges you face.


Financial matters are closely tied to our egos. Do not compound your money problems with feelings of shame. Dealing with debt and financial setbacks is not shameful; it’s being responsible.

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Tip #3 - Take Inventory


In a time of financial stress, you can be tempted to bury your head in the sand and simply hope for the best. This is the exact opposite of what you should do.


To carve out a path to financial recovery, it pays to take a step back and assess your current situation. Knowing where you stand now can help you develop a realistic plan of where you want to be in the future.


Start by determining the resources available to you, both from your bank accounts as well as insurance. Next, know what liabilities you face.


Tip #4 - Establish Achievable Goals


After assessing where you are today and where you want to be, it’s just a matter of plotting the course to get there.


Define your main goal. Are you looking to earn a consistent income, pay down your medical bills or rebuild a depleted emergency fund? Regardless of your end objective, writing down your goals will make it much easier to move ahead.


Your goals should be SMART – Specific, Measurable, Attainable, Realistic, Timely.

Next, create a plan that will help you reach your goal. If you devise a plan and stick to it, you can regain your financial health.


Tip #5 - Make It Happen!


This step may sound obvious, but for some reason, many folks have difficulty executing it.


Many women dream about turning around their financial situation, but only a handful take consistent action.


A financial recovery plan is only wishful thinking until you convert it into action. Action is the force that converts goals into tangible results.


Remember to review your plan once or twice a year and adjust if necessary.


Conclusion


That’s it – 5 simple steps that can help any woman recover from a financial crisis.

Times are tough, but with discipline and a forward-thinking attitude, recovery is within reach.


If I left out any other tips, please add them in the comments section below.

Good luck!

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