Are you facing a financial blunder? Don’t worry. I’ve got you covered. To some degree, financial losses can be just as harmful as other types of losses. People need to start learning how to react and how to fight back and recover after a financial loss, as otherwise, it creates a snowball effect that ends up ruining lives.
As humans, we experience all kinds of loss. For instance, when we lose a close relative or friend, that is a considerable loss. We also experience a loss when life says NO to our efforts towards fulfilling a dream or goal, and then we also have those moments when we face financial losses too.
Financial blunders can come in different forms. They could be the result of a bad investment decision or an unexpected legal feud. It’s a crucial moment and represents a huge internal struggle between what we thought we could do with that money or assets and the fact that it’s no longer possible.
Anger is also a natural response after a financial loss, but it is a dangerous one that can backfire with disastrous consequences. Many have discovered that making impulsive financial decisions in order to recover after a financial blunder never ends well. The best idea is to have a rational look at the situation.
If the financial blunder was a considerably large one, there are some crucial steps to follow in order to recover from it
Have a clear vision about your previous financial condition and the one resulting from the financial loss.
All previous blunders and losses are no longer important because they’re in the past and they cannot be undone. If you need time to calm down before you start thinking about strategies then do so. Good positive thoughts are crucial during these bad times.
Good strategies and ideas will only come if you have peace of mind and tranquillity necessary to let them flow. The impact of a financial loss will not only hit your accounts, but it also has a strong emotional impact that can affect the developing of other activities and any decision-making process.
It is important to recognise the extent of the financial blunder to fully grasp it and be able to move on to new, better-conceived ideas.
1. Discuss the issue with your family
Keeping all the anger, frustration and disappointment to yourself will have no good outcome. Bottling feelings has never been a good strategy, so don’t be afraid of recognising how bad you feel and talk it out with persons of your absolute trust, like family and friends. Only you know who among family and friends can be comprehensive and nice about it.
In addition to this, external and different input, ideas and suggestions from different perspectives can give you the understanding you need in order to overcome a difficult financial situation.
2. Try to make changes to your lifestyle, dictated by the new situation
Experts recommend to put yourself above the situation and see things from an outside perspective. You need to face facts and realise that the money is not going to return. If the financial crisis was a big one, then maybe some lifestyle changes will be required.
Work on new budgets that fit your current financial situation, budgeting is the best way to find areas that can resist cuts. Just make sure that the entire household is aware of the situation and the upcoming changes.
3. Avoid impulsive and sudden financial moves
Taking money from retirement money, from a savings account or any other money that was destined to other endeavours in order to make up the difference may not be the best idea. These sudden moves do come with taxes and other law regulations that can be costly in the long run.
4. Seek additional sources of income
This is the best way to fill in the financial hole you currently have. Looking for additional sources of income can be the solution since you won’t be risking important money that is supposed to be somewhere else.
Right now many people are finding out that they were victims of the PPI scandal. This scandal involved numerous financial institutions. These institutions deliberately charged insurances to credit card holders or people applying for loans and mortgages. This was done without their consent or unnecessarily. After almost 20 years, they were discovered and forced to give the money back to their customers.
This may be the perfect opportunity to get your hands on money that is rightfully yours. You need to hurry though. The UK government has established that the final date to make a claim for mis-sold PPI is the 29th of August 2019.
Here you’ll find a group of experts who can do the process for you or at least let you know if you are entitled to make a claim or not.
Watch this space for updates in the Hacks category on Running Wolf’s Rant.