How to move forward after money setbacks
Money setbacks are one of those things that can happen to anyone, but they still feel very personal when you’re going through them. It might be a period of unemployment, unexpected bills, debt that built up faster than you expected, a business that didn’t work out, or just the general cost of living catching up with you, but whatever the reason, the fact is that financial setbacks can leave you feeling stressed, embarrassed, or stuck, even if you’ve done your best.
The truth is that money problems don’t say anything about your worth as a person – they’re often the result of life being unpredictable, and most people experience some kind of financial wobble at some point. And the good news is that moving forward is possible, and it doesn’t have to start with a huge plan that’s too hard to follow – small and steady always wins the race.
Give yourself a bit of breathing space
The first thing to remember is that panic rarely helps in any situation, including financial ones. Of course, when money feels tight, it’s easy to spiral into worst-case thinking, but the best thing you can do is pause and actually look at what’s happening. Then take a breath, write things down, and remind yourself that this is just a temporary situation, and it doesn’t have to take over the rest of your life.
You don’t have to solve everything in one day, and you probably can’t anyway, but realising that you can start moving forward is the first step.
Get clear on your numbers
This part can feel quite uncomfortable if you’ve got financial issues, but it can help massively, so it’s got to be done.
You’ll find that a lot of stress comes from not knowing exactly where you stand, but once you sit down and look at your income, your essential expenses, and what you owe, things can often feel a bit more manageable, even if the numbers aren’t all that great.
Then start simple. What needs to be paid first? What can wait? What can you reduce for now?
Focus on what you can control
Money setbacks can make you feel pretty powerless, but there are always small things you can control if you just look for them.
Maybe you can cancel a few unnecessary subscriptions, for example, or perhaps you can negotiate a bill, switch providers, or create a basic weekly budget that stops everything from getting away from you. These things can all give you motivation to do more and more until you’ve got everything in a place that makes more sense for you.
Don’t be afraid to ask for support
A lot of people struggle alone for far too long, and they’ll do that because they don’t know who to turn to, they think there’s no help for their situation, or they’re ashamed of the mess they’ve got themselves into.
But the fact is, you’re not the first and you won’t be the last, and if you’re dealing with debt, financial anxiety, housing concerns, or anything else, there are professionals and services literally designed to help you. And speaking to one of them doesn’t mean you’ve failed, it actually shows you’re taking things seriously, and you’re ready to make some important changes.
Even working with experts like Adverse Mortgage Advisors can help people understand their options if their credit history isn’t perfect or they’ve had financial difficulties in the past. Basically, the right guidance can open doors that feel closed when you’re trying to figure it all out on your own.
Rebuild slowly, not all at once
One of the biggest mistakes people make after a financial setback is thinking they need to fix everything right away, but the truth is rebuilding things has to be a gradual process, otherwise it can get overwhelming or even take you right back into the position you were in before.
It’s best to start by paying off one small debt first, then building an emergency fund, then getting into the habit of checking your finances regularly, and so on – bit by bit, add new financial checks and progress to your life, and eventually, you’ll get it all dealt with.
Be realistic about recovery
Financial recovery isn’t a linear thing – some months will feel better, others will feel harder, and progress might feel very slow or even feel as though it’s stopped. But that doesn’t mean it’s not happening, and it definitely doesn’t mean it won’t start up again if it has paused for a moment.
What you really want is stability, not some kind of instant transformation that doesn’t usually exist and isn’t possible anyway.
Let go of shame
This is such an important thing to remember, even if it’s a hard thing to do sometimes.
Money setbacks come with a massive amount of shame, even though they’re really common. The problem is that people don’t tend to talk about them, and that makes it feel like you’re the only one but you’re absolutely not.
You really are allowed to just start again from scratch if you need to – you’re allowed to rebuild things and try again. Your past definitely doesn’t define your future, but it can teach you useful lessons, and if you can take those lessons and forget the shame, you’ll be in a wonderful position.
Look forward
When you’ve been knocked back financially, it’s easy to stop thinking ahead, but having even small goals helps, and those goals can be anything at all, like feeling more in control of your spending, reducing how stressed you feel when a bill arrives, or it could even be getting back on track with your housing plans.
If you’ve got a future to look into, and you’ve got goals you want to reach, that’s going to make sticking to the plan you’ve put in place here and now a whole lot easier.
There’s always a way back
Money setbacks can feel like the end of the world, but they aren’t – there’s always a way back, and as long as you don’t hide from the issue, you can start work on that way back right away.
