To err is human. What you learn from your mistakes defines your success or failure in life. And this holds true in the financial mistakes you make too. Becoming rich is not always a bed of roses; you have to deal with the thorns to enjoy the roses.
Making grave financial mistakes can easily push you towards deep depression. Bounced checks, piling up dues and emergency expenses can take their toll on you.
So, how do you deal with the financial mistakes in your life?
Can you forgive yourself and move past the mistakes?
Here are some considerations that will help guide you
The positive approach
One way to face the financial mistakes glaring at you is to gear up for the fall in advance. When you know what to expect you will not be overwhelmed, when things start going wrong. Here is what you can do:
Brush up your financial knowledge
When you are more informed about financial details, you will be able to deal with the financial difficulties effectively. Read books, magazines, blogs and newspapers on finance. Get advice from peers who have good financial control.
Learn from mistakes of others
Find out how people deal with common financial emergencies. With this knowledge, you can reduce the stress levels and deal fittingly, when issues arise and knowing that others have faced similar issues and found a way out.
Learn to save for emergencies
Knowledge alone is not sufficient. You need to have emergency money stashed away to be used when needed. A cash cushion will make a financial fall seem not that disastrous. Money in savings account and ensuring sufficient insurance cover are adequate measures for starters.
Minimize damage wrought by financial mistakes
Even the best preparations bite the dust when emergencies strike. So, don’t be discouraged when in spite of having a proactive approach, you find yourself still in financial ruin. A positive mindset helps to undo the damage to your emotional and financial health.
Here are some things that you can do:
A big setback can test your stress levels dangerously. Instead of freaking out, relax and ruminate on the issue. When you give yourself some time, you are sure to get a positive outlook on the issue.
Try to reverse the damage
Some financial mistakes can be reversed such as
- Overspending on clothes or appliances, for instance, can be dealt with by returning or reselling them.
- And some mistakes need urgent attention like a debt on your credit card, which is more pressing matter than contributing to your retirement fund.
- For loan defaults, try to make regular payments or payback the money you had borrowed from a friend or relative. If repayment is difficult take on part time work. It may look an uphill task but with time and effort you can certainly heal your financial wounds.
Only when you have no debts dragging you down can you make long term positive financial plans. Try making a clean break from your damaging money habits.
Don’t make things worse
Money spent will not come back. Splurging on luxury pursuits cannot be reversed. So, instead of spending more to lessen the guilt, try to curb your spending spree.
Break away from destructive money spending. Treat failure as the stepping stone to success. Accept your failures, make peace with your past mistakes and focus on future.