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How to Bounce Back From Financial Difficulty

How to Move Forward After Experiencing a Financial Setback

The year of 2020 delivered an abundance of unexpected obstacles. These obstacles included a global pandemic, civil unrest, a lot of zoom calls, and no shortage of financial hardship. Maybe you can relate to some of these unexpected scenarios. Maybe, like millions of Americans, you lost your job, or maybe 2020 left you with more medical bills than you could have ever expected. If you can relate to either of those situations, it is important for you to know that you are not alone, and also know that you can and will overcome this setback! Below are a few valuable tips that can get you started on your recovery from a financial setback.

  1. Understand What Triggered the Situation
    The first tip is to determine how you ended up in the situation that you are in. This does not mean that the situation was something that was in your control, i.e., getting laid off in the middle of a pandemic. Regardless, take time to understand what caused the situation.

    It is important to realize that what is done is done and there is no changing the situation. You must accept it, understand the setback, and focus on moving forward.

  2. Reflect on Your Situation and Speak with Trusted Professionals
    Don’t be afraid to recognize that you should take time to reflect and process the difficulty you are facing. It is normal to feel stressed and worried when you face an obstacle in life. Pushing these feelings aside can be very unproductive.

    Reflecting with a professional is also a great idea. When you don’t know what to do next or how you should plan for your future, contacting a financial advisor is one way to make sure that you are headed in the right direction. It is important to meet with a trusted advisor who cares about your future as much as you do and will provide you with honest feedback. Dover Federal Credit Union’s Financial Advisor, Steven Pierce, can help you with all of your important financial decisions and goals.

  3. Don’t Be Hard on Yourself
    Not all financial fallouts are your fault, and rest assured, you aren’t the first person to experience your situation. It is okay to not be able to manage your money and budget without the assistance of a professional. Do not feel ashamed of yourself. Financial setbacks are a part of life, but they are not final!

  4. Create a Goal
    Rather than waiting for everything to figure itself out, take the time to create a goal and start working towards it. It is important to envision your desired outcome and commit to making it happen.

    When creating goals, follow the SMART goal acronym:
    1. Specific: well-designed and to the point
    2. Measurable: set measurable milestones to track your success
    3. Achievable: goals are attainable
    4. Realistic: relevant and possible to reach
    5. Timely: create a start date and a target when you would like to meet the goal

    Do you have an outstanding amount of debt you need to pay off? Create a goal with a deadline. Have you been laid off? Create a goal to actively search for jobs every day and apply to 3 jobs every week.

  5. Create Lessons You Can Use in the Future
    Once you have begun to recover from your setback, reflect and see how what you learned can be used in the future. Lessons give you direction and allow you to learn from past setbacks and obstacles. Using what you learned and how you overcame difficulties can be extremely helpful.

We’ll Help You Get There

Recovering from a financial setback will vary depending on many factors, including the situation, the person, the severity, and the timeframe. Regardless of these factors, Dover Federal promises to help you recover and assist you where needed. The above guide is a simple starting point that can be used to help you get back on your feet. If you would like to receive specific advice and understand how we can help you, contact a branch near you today or schedule an appointment with our financial advisor, Steven Pierce.

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