Former boxer Mike Tyson is not an obvious source of sage wisdom. Yet, he’s credited with one quote that will ring true for many professionals right now: “Everyone has a plan until they get hit in the mouth.” And, you can recover from financial hardship with a plan.
How to Recover from a Financial Hardship
The sad reality is that millions of Americans are currently bearing the terrible brunt of the COVID-19 pandemic. Beyond the obvious suffering of many people with the disease, millions more are struggling financially due to reduced hours, canceled contracts, or even downsizing.
With that in mind, today we’ll share an action plan for how you can recover from financial hardship. Check out our guide here on recovering from financial hardship.
If you’ve recently taken a hit to your income, it can be easy to assume that you’re in an untenable position. This, however, might not be the case. That’s why it’s important to take stock of all of your investments and assets. Determine what you have of value and see if you can maximize the resources you have at your disposal.
Set Clear Goals
Rome wasn’t built in a day. Professionals should keep this in mind when they start setting goals for getting through this recession. It may take you months to recover fully from the hit you’ve taken.
So rather than driving yourself crazy with unattainable goals, focus on what you can achieve in the short term. You may want to consider filling out a SMART goal setting worksheet to keep you on the right track.
It’s easy to feel paralyzed during a crisis. After all, things may seem so bleak right now that any action appears futile. However, that’s not the case. It’s better to make incremental progress than to stand still or lose ground.
Even a relatively small victory, like retaining a client or landing a job interview can give you the opportunity you need to get out of financial trouble.
You have more skills than you realize. Don’t make the mistake of narrowing your options for freelancing or part-time employment. Instead, look to apply your knowledge and experience in new ways. You never know who’s looking to partner with someone just like you.
At this moment in time, most lenders will be willing to work with you on deferring or forgiving certain payments. Don’t miss this opportunity to negotiate with credit card companies, banks, or landlords to give you the breathing space needed to start over again.
While it is possible to rebuild your credit over time, it’s better to negotiate in good faith with your lenders than to default on payments. Doing so will be better for everyone in the long run.