While the loss is financial, there is an emotional toll that comes along with financial losses. You may even begin to grieve the life you had prior to your financial loss, and that is entirely understandable. To try and get back to your financial life before the loss, you may put yourself at financial risk. If you have experienced a financial loss, there are several ways to cope with it. Continue reading for 5 ways to cope with a financial loss.
1. Be Honest With Yourself
To start moving forward from a financial loss, you must be honest about what happened. Just like the first stage of grief, you need to be able to accept the financial loss. If you downplay or suppress the feelings you have about your financial loss, you are paving the way to more financial problems down the road. Lay out how much you lost, what caused your financial loss, and what your role was in the financial loss. This will help you identify what to prevent in the future.
2. Lean On Your Loved Ones
After any loss, you will need support for the emotional aspect of a financial loss. Lean on your trusted friends and family to help get through this financial rough patch. It is important to still understand that it is up to you to make the commitment to recover from your financial loss. However, you can vent to your loved ones and use them as a support system as you move forward. If you do not feel comfortable confiding in your loved ones, consider a professional counselor to lean on.
3. Refrain From Rash Decisions
After a financial loss, you need to take time to regroup. Refrain from making any quick and rash decisions that could be emotionally charged. Instead, make rational and logical decisions that will be helpful for you in the long run. Take the time to understand what went wrong previously so you can move forward in a positive way.
4. Rework Your Finances
Now that you have taken a financial loss, you need to get your finances back in order. You may have to cut back on your expenses and find ways to increase your income to recover from the loss. A few expense cutbacks could be streaming subscriptions, eating out, and memberships that you do not use often. Before making any major financial decisions that would impact your lifestyle, see if there are smaller ways to make your finances work. These cutbacks may only be temporary, so it is important to also not to make any rash decisions when it comes to changing your expenses.
5. Avoid Similar Losses in The Future
As you move forward from your financial loss, you need to learn from your mistakes. You may have taken on too much risk, put trust in someone that you shouldn’t have, or just ended up with the short end of the stick. Analyze how the financial loss played out to see what actions you could’ve avoided or done differently in that process, so you know what not to do in the future.
After a financial loss, you may want an expert’s input to put your finances back together. We are here to assist you with moving forward from a financial loss. Contact me for help at (402) 454-7204 or email me at jason@fp-wealth.com.
Sources:
https://www.investopedia.com/articles/financial-theory/12/psychological-coping-strategies.asp