I've had my fair share of setbacks recently. It seems life puts us in these situations to test our patience and see how we would react. Financial setbacks can sometimes be disheartening in which our expectations didn't materialise into reality at the time we planned it to happen.
What to do? Our minds and emotions become cloudy. Despair sets in and we're left to ponder how to fill those financial needs that have been postponed by the setback. One thing is certain, we have to improvise to fill the gap.
Being Resilient And Proactive
Financial setbacks are to be expected but they're usually not accounted for despite of the planning we make. In my case, it was unexpected expenses that kept piling up until it almost put me into a big debt.
Financial setbacks can also come in the form of a job loss or medical emergencies. I believe it's crucial to understand the immediate impact of these setbacks on our cash flow, budgeting, and savings. Because they will be out of order for awhile. This can put an emotional toll on us which could strain our personal relationships when left unchecked.
All of these can make us sink into a reactive state where instead of leading from the front, we take a backseat and watch things unfold as if we can't do much about it. I've experienced it a number of times and let me tell you, it just makes things worse. Discipline and all those qualities that we developed before start to slip away because they're no longer exercised.
Rather, we should be resilient and be proactive. It's a detour that we have to take away from our original path.
Financial Reassessment
The value of having an emergency fund is realised during these situations. It can lessen the impact of the financial setback. Since then, I've prioritized implementing saving strategies that will allow me to save consistently. Because I realised that I'll be able to build a strong financial cushion that I can fall back on and not overly affect anything that I have going on. I'm trying to reduce a big punch to a mere slap.
Additional income streams is a good way to increase the amount of money I can save up and also pay the debt. I was debating on which to prioritise between the two. I picked saving because the debt didn't have a big interest attached to it. I could pay it all in one big win.
As part of the reassessment, I revisited the topic of financial literacy because I was having doubts on the level of my financial education. Maybe I was lacking in proper financial management information that I could turn into a new skill(s).
To maintain long-term financial resilience amidst financial setbacks, we should regularly review and adjust our financial goals and plans. Continuously building savings and an emergency fund. Monitoring progress and maintaining a long-term focus. The journey still continues.
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