Whether you’ve recently lost your job or you’ve been hit with expensive medical bills, facing financial setbacks can take a toll on your mental well-being. According to a NerdWallet survey, 64 percent of Americans currently have credit card debt or have faced debt in the past. While it may take time to recover from a significant financial loss, you need to stay levelheaded to overcome the setback. With that in mind, here are some tips to help recover mentally from a financial setback.
Stress often leads to overspending or taking more risks with your money in hopes of faster recovery. Six in 10 Americans admit that their most common reason for credit card debt is spending more than they can afford on unnecessary things, while 49 percent of Americans say emotions have caused them to spend more than they can reasonably afford. Americans also reported stress and sadness being the top emotions associated with overspending. Essentially, overreacting to your situation can cause you to set yourself up for even more financial setbacks.
Instead of trying to make yourself feel comfortable with the situation, accept the loss and move on. It’s best to remove your emotions from the picture when looking for solutions to your situation. Focus instead on practical steps, such as earning extra income or reducing your current costs.
Surround yourself with support
Don’t hesitate to reach for support, especially if you’re feeling overwhelmed or having a hard time staying focused because of your situation. Reach out to trusted friends or family members to talk and ask for advice.
If you’re looking to speak to someone on a more confidential level, seek out affordable professional help. Speaking to a professional enables you to deal with feelings of being stressed and overwhelmed in a healthy, productive way. Therapy also has a multitude of long-lasting benefits, and you’ll develop coping mechanisms that can help you for the rest of your life. In addition, talking to a therapist may help you reach the root of your financial problems and deal with future issues before they recur.
Facing your financial problems head-on might seem like a paramount task, but it can be made easier with organization. Organizing your finances will help you gain a better perspective on how big the problem is and how much of an impact it will have. Assessing the situation will also give you a better idea of how much you’ve lost in total. You’ll then be able to begin putting a plan in place to restore lost funds.
Staying organized will also keep you in a better headspace, because keeping yourself in the dark about your finances will only create more stress and worry. In fact, a lack of organization can harm your finances as much or more than being short on cash. Simple things like losing bills can lead to late fees, and not keeping track of your checking account can cause overdraft fees.
For optimal organization, experts recommend keeping bills that arrive by mail in the same place by investing in a simple file cabinet or file folder. Paying bills as soon as you receive them is also a great way to stay current with your financial situation. If you don’t have enough money available in your bank account, look into obtaining a loan. Eastern Loans offers same—day direct deposit loans for people with limited incomes and bad credit and can help you get back on track with your finances.
Although facing financial setbacks can be stressful and overwhelming, it’s crucial to take care of your mental well-being to prevent your situation from becoming worse.