Quick Read: Recovering from A Financial Mistake
A financial mistake or blunder can happen to anyone.
For some, it’s uncontrolled spending or purchasing a new car without shopping around. For others it can be investing in something they don’t know the first thing about.These mistakes can sometimes leave you in tight financial situations and give you that dreadful feeling of buyer’s remorse and guilt. Rather than letting your mistake weigh you down, take the necessary steps to recover and fix the situation so you can get back on the right financial path. Here are some suggested ways to recover from a financial mistake.
When dealing with a financial mistake, the first step is to own up to your mishap. Staying in denial or pointing the blame toward someone (or something) else isn’t going to make the problem any better, but will actually make it worse. Without taking the blame for your money mistakes, you will be more prone to repeating them. There may be feelings of guilt when taking the blame, but remember that mistakes happen and the faster you forgive yourself and let go, the faster you can work towards correcting and righting your financial situation.
Identify the Motive
Understanding what brought upon the reason to commit your financial blunder can help keep you from repeating it in the future. Our emotional state can play a major role in our spending habits. Different emotions can bring upon uncontrolled spending and unnecessary purchases.
Look back at past purchase mistakes and try to remember your physiological state. Keeping a spending log can help you pick up on triggers that bring you to spend and serve as a reminder of past mistakes. Whenever you are considering a major purchase, revisiting this log can keep you from making an unnecessary purchase.
Make A Plan
Making a financial mistake can be an eye-opener for many and can actually help many gain control of their finances. When it comes to money, you would hate to “learn the hard way” but you can certainly use this experience as a way to better your financial habits in the future.
Consider organizing your finances and create financial goals, including making a plan to pay off a large purchase if necessary. Depending on the mistake, everyone’s goals may be different, but it’s important to make sure they are realistic, attainable and you’ve given yourself a time frame to reach them. You may want to sign up for bill reminders, start an emergency fund, and create a budget. These can help you to stay on top of your finances, provide cash in wake of a financial surprise, and keep you well aware of what you can (and can’t) afford.
Increase Financial Literacy
When it comes to financial literacy, there is always room for improvement. You can never have enough personal finance knowledge. It’s the backbone to making good money decisions which means less financial mistakes! Tayne Law Group has put together some helpful guides and blogs to help you increase your knowledge. You can also check out Leslie Tayne’s book: Life & Debt!
It’s important to remember that mistakes happen to everyone. Chances are you will continue to make a few more financial mistakes in the future. Don’t beat yourself up over them. Accept them and look to move forward! What are some financial mistakes you’ve made? How did you recover? Feel free to leave your comments!