Marcia's Blog

5 Steps to rebounding from a financial mistake

Friends, sometimes we find ourselves in a situation that we perceive to be ‘bad.’

We may suddenly find ourselves out of a large amount of money, or we may have fallen behind on our bills and damaged our credit score. Whatever financial mistakes you have made, you can always turn them around. If this is something you’re currently grappling with, here are some steps to take you back toward financial freedom.

Step One. Take Responsibility.

Before you can turn your finances around, you have to acknowledge your role in creating the situation in the first place. I don’t care if your spouse ran up the credit card bill or if you got into debt trying to bail your sister out of a crisis, you must take full responsibility for the state of your finances. When you stop blaming others and take full responsibility, you take ownership of the problem and you then have the power to create the solution.

Step Two. Forgive Yourself.

We’ve all done things in our lives that we regret. That’s part of being human, and it is part of the learning process. Painful situations have a purpose; they give us clarity and direction, showing us where we can make improvements in our lives.  If you’re up to your eyeballs in debt or you’ve experienced a foreclosure or bankruptcy, it is certainly understandable that you may be angry with yourself or feel guilty for getting in that situation.  However, anger and guilt aren’t going to help you to turn things around. You must find a way to rise above the emotion and give yourself the opportunity to do better.

Step Three. Read About the Mistakes of Others.

There is nothing that you are going through that someone else has not gone through before. Many people make financial mistakes. In fact, a lot of them go on to become very wealthy once they learn from those mistakes and change their financial habits. I often read biographies because I like to learn how others handled their challenges and overcame obstacles. I invite you to do the same. It is not only motivational to see someone make a comeback in their life, but you may get some ideas as to how you can apply their wisdom to your situation.

Step Four. Make a Commitment to Do Better.

Anything that is worth having is worth working for and that includes financial security. You have to be willing to practice sound financial habits every day. You can’t think about improving your finances one week and then go on a spending binge the next. When you commit to doing better, you have to make a plan that outlines the way you spend and save your money day in and day out. Commitment is not for the faint-hearted. It takes courage and focused intention, which are qualities that we all can develop.

Step Five. Seek Financial Education.

When you admit to making a mistake, you acknowledge that there is more for you to learn. Financial education will help you to increase your knowledge base so you don’t make those missteps again. Visit a nonprofit financial counseling organization or take a financial education class such as those offered at HomeCoach-USA. The key to success is information. When you know better, you will do better.  I have confidence in you!