- Personal Finance
How to Survive Financial Shame and Embarrassment
You had been enjoying your new home and your new automobile for about one and a half year before the sad news occurred. Your job closed and moved overseas. You had not put away any emergency money, although you thought about many times.
Now you are dealing with unemployment for over a year. You have put in over a hundred application and have heard from only a hand full of employers. Yes, you finally got hired but it was too late. The whole neighborhood saw your automobile possessed and then your house foreclosed.
You would have been out in the streets if it wouldn’t have been for a wealthy uncle who gave you a sizable loan to get back on your feet. It’s unfortunate that you must pay it back, but you most certainly do.
Acknowledgment of Financial Mistakes
The key to surviving financial embarrassment is to acknowledge that somewhere along the line you made some serious financial mistakes.
Recovering from financial disaster and moving forward by executing specific actions will open new opportunities for financial success.
Many people who find themselves in dire financial predicaments think a quality lifestyle consist of indiscriminately spending money without considering the long-term consequences. However, such reckless activity is often due to a gross misconception: that the ability to spend money will make us happy.
Choosing Intelligent Money Management
Not True! What makes us happy is the wise management of money and getting it to work for us. When we are in control of our finances the quality of our lives can drastically improve, giving us the financial freedom and security which we need to possess a peace of mind and sense of fulfillment.
If we continue to spend money without regard for our financial future, including emergencies as well as retirement, we will find ourselves in many embarrassing and shameful states.
6 Powerful Recovery Tips from financial disaster
The first step in recovering from a money disaster is to create a budget. The advantage of having a budget is that you are taking charge of your financial present and future. You are deciding to make your future bright and your life, well-organized and financially secure. To do this, you must know where you are spending your money.
Taking Charge of Your Finances
Have You Created a Personal Finance Budget for Emergencies?
Make a lifestyle modification. Downsize every costly activity which you can think of, including eating out, going to the movies, buying expensive clothing. Get rid of unnecessary household expenses such as cable TV, monthly software payments, and special services designed to help you get ahead but never does.
Instead, live a simple life designed to help you get your finances back on track. Once you get your money in order, then you can address other short-term goals you have been considering.
Avoid hanging around people who tempt you to spend money unwisely. Going out to restaurants, buying lots of expensive food and drinks for the sake of socializing is a mistake if you trying to recover from a financial downfall.
Create long term financial goals. Consider how much you have left after paying bills. Then take a percentage of the money and invest it in a 401 (K) plan. Saving toward your retirement is vital due to the lack of certainty regarding the social security system. Will it be around when you retire?
Make an appointment with a personal financial advisor for more information on setting goals and securing your financial future. Financial experts know all the pros and cons of investing in a variety of saving plans and will introduce several money-making opportunities via mutual funds, stocks, and bonds.
The goal is to make sure you never suffer a series of shameful and embarrassing episodes such as an automobile repossession, a devastating foreclosure or a stressful marriage sparked by money problems.
Enjoy the journey of getting your finances back in order. Many people never recover from money problems and end up living a lower quality of life. But if you are determined to achieve a sense of freedom from poverty, you are well on your way of making a full recovery.
Once you have gotten you financial situation back under control, you will be in the position to buy a home and automobile again. However, you will be prepared for any emergency, having learned from your previous financial mistakes. You will experience a sense of freedom from worry and stress due to lack of financial security.