It’s that moment when you’ve hit rock bottom and you feel things are at its worst that one realizes that the wisest people have always turned their problems into opportunities. At a time when the economic wheel has been slowed down by the coronavirus, bankruptcy is an unpleasant awakening that many Americans have had to face. If you’re one of them, you can help yourself by following these steps:
Take Responsibility for Your Misdeeds: Admitting responsibility for getting yourself into a dismal financial situation may taste bitter, but its end is always sweet. Look to your past to find out what mistakes you made that brought you into the situation that you are in now. Once you realize these mistakes, then you will have the necessary tools to plan ahead, keeping in mind that you will phase out all those bad spending habits you developed earlier. Self-accountability is painful, but it will do you a lot of good in the long run.
Plan Ahead: Once you have a better understanding of how your strategy failed, you are in better shape to redraw your roadmap towards a more prosperous financial situation. Cut all non-essential spending from your monthly budget, write down all your expenses in detail, and prioritize the way you spend.
Maintain Your Support Network: Family, friends, and those who are close to you are the ones who can support you the most during these hard times. It’s not about seeking their financial support, but about using the experience of your more fiscally successful contacts to develop a roadmap towards a more financially successful future.
Be Patient: Building yourself back up financially is a long term process, so tighten your belts and don’t expect an immediate recovery. For unforeseen circumstances, set aside three months worth of money to cover living expenses. Most importantly, stick to the plan that you laid out for yourself.
