All too often due to a poor decision, sickness or something completely outside of your control you may end up in a financial disaster. The question is how do you recover from this and what is the best approach.
You need to ask yourself when do you give up on your dream? The answer is always NEVER.
Here are 5 steps to get you back on track.
1. Pick yourself up and assess the situation.
I find these types of events can quickly give people clarity of what is important and therefore provide focus on what goals they really want to achieve.
Write down where you would like to be financial and by when. Review the damage caused and what needs to be done at this stage you may need professional advice.
2. Seek out advice.
Even in bad financial situations, good advice can save you both a lot of money and a lot of time. Make sure that you speak to someone who has the experience to deal with your problem.
At this point, more bad advice will only make things much worse. Generally, this advice will require you to make some hard decisions. None of us like making these decisions.
I find a Pro and Con’s list is a good place to start. Sounds a bit quirky but writing things down again provides clarity and gives you a reference in the future.
3. Make a plan.
But, insure that you provide yourself with a range of results.
Outline what the minimum goal is that you must achieve and what the ultimate result you would like to achieve is. As you know, things do not always go to plan and when investing returns will vary for year-to-year depending on many variables.
Make sure you have the ability to deal with the volatility of investing. We do this to ensure that you have a clear understanding of how the recovery will look, so you will not be deterred at the first problem.
4. Get started now!
Do not wait for the perfect moment to get started. The best time to start a well-formed plan is now. The recovery will take time; the sooner you start the sooner you will get there.
Remember it is a marathon, not a sprint; so do not go flat out at the start. Take your time but make sure that you do something everyday towards your recovery. This will ensure that taking action on your plan will become a habit and before you know it, you will well on your way.
5. When things go wrong, refer back to you plan.
This is why we write it down so you can in the future read exactly what your plan was. This ensures that you can find a solution to the current problem and continue on achieving your financial recovery.
Remember it will be hard and at first glance overwhelming, which is why we break down the problem into small bits and tackle it a little bit each day.