I’m not quite sure why there’s a need to specify whether the setback is financial or general because my best guess is that you’d handle any set back the same way.
A setback is simply put, a deviation from your expected outcome or income. It could be a detour (which is how I typically view everything) or a closed road but whichever form it takes, it is important to know that they will come and it’s best to be prepared/equipped to handle such situations when they arise.
No matter how carefully you plan your finances, there are bound to be things that don’t go according to plan or expectations that are less or more than what we hoped for. I find that it’s usually more sensitive when it’s your money and finances because money is such an important aspect of life. You’ve probably been taking positive periodic steps towards achieving financial independence and have been watching your hard work grow steadily (sometimes slowly) only for this “setback” situation to arise. As difficult as it can be to bounce back from setbacks, the alternative is to let it take you down. Today, I will share some strategies which have helped me in such times
1. Have a positive attitude.
This I believe is the number thing you need to check immediately you get news of that setback; take time to breathe. If you have the luxury of time, take some off the issue/matter; maybe two days. Try not to think about it. Then keep telling yourself that it is only a setback and you will be find another way. Your attitude goes a long way in determining how this setback pans out. It’s been said that everything in life is for a reason, either for your profit/gain/happiness or to teach you a lesson. Either way, you’d get something out of the situation. Ensuring you stay positive can be hard, but eventually, you will see that to deal with the situation appropriately, you need to be calm and clear headed. Where your attitude isn’t right (fear, anger, discouragement etc), you tend to make the situation even worse by making bad choices/decisions in those times or it be be simply that you’d make the setback/loss/situation even worse by the amount to time you spend being negative rather than rallying.
2. Re-strategize
This one is pretty obvious but let’s discuss it. I would typically ask myself questions to understand what went wrong. Sometimes, what went wrong isn’t a function of what you did or didn’t do. Re strategizing means that you check/change your strategy or approach to the situation. The situation may not be as bad as you thought, it may also still be salvageable or you might need to simply close out a position. Assessing your situation and strategy will help you identify what exactly need to be done as your next move. At this point, you might realize/decide that you need professional help from a financial planner or financial advisor. Be true to yourself and make the best decision for you. This is an important point as getting it wrong again might lead you right back to the same or further setback.
3. Get to work
Now that you’ve restrategized, it’s time to get back to work. Depending on the situation and your choices, this might include developing new plans, taking inventory, defining goals etc. you might need to work twice as hard as you previously did, you might need to study more and make use of available resources to ensure that you are better enlightened to make better decisions, plant new seed, prioritize obligations, balance risk/diversity your portfolio. Once this is done, you would begin with implementation. The new strategies that you have come up with require positive actions which you have to consciously work at.
We hope you find these tips helpful on how to deal with financial setbacks. Share with us in the comment section how you handle financial setback.
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