Life is a series of ups and downs. This phenomenon is true regardless of whether you are born into wealth, achieve high levels of success in your career, or build the family you dreamed of when you were little.
That’s because success is completely subjective and your sensation of achievement this week is generated in contrast to what you did last week.
Because we’ve all lived through this cycle, we all know how it feels to be disappointed with your current situation. What matters is not the fact pattern that leads to your current predicament. What matters is whether you have a credible plan to get yourself out of your rut and whether you have the motivation and support network to help you put that plan into effect.
When it comes to personal finances, a low period could look quite different depending on your background.
- It could be a sharp reduction in your net worth after a stock market crash or a loss of money to a failed investment scheme or scam.
- It could look like a pile of credit card bills; the consequence of out-of-control spending that you have come to terms with but cannot feasibly afford to repay.
- It could be a dramatic reduction in your quality of life if you retire without sufficient pension provision to provide you with the pleasures and holidays that you used to enjoy when you were at the height of your earning power.
How to live your best life during hard financial times
- Appreciate that life is dynamic, and nothing is permanent
You may have gotten yourself into a depressing financial situation, but you will not be trapped there indefinitely.
- Seek appropriate financial advice on what to do from a qualified individual
Use the lowest-cost methods first, and work upwards, to ensure you don’t spend a single unnecessary penny. This means beginning with calling Citizens Advice, looking on government money websites or picking up a good book on the subject.
In some cases, an independent financial adviser or debt management adviser could be the right answer. Be sure to ask them to be upfront about any fees they charge before you have a paid consultation so that you’re clear on how much their service will cost.
- Get access to temporarily financial firepower
Temporary firepower could include personal loans that are designed to help you extract yourself from situations in which you’re attracting penalties and fines for non-payment.
- Form an action plan and share it with a supportive friend or family member
Where willpower is involved, one great life hack is to make yourself more accountable to a plan by making it public or sharing it widely with people you know.
Putting your ambitious goals out there, you can leverage peer pressure and other friendly support to help you make the right decisions and exercise more control over your spending, investing, or borrowing.
By following these simple steps, you can calmly educate yourself, create a plan, buy yourself some financial freedom and hopefully stick to the steps you need to take to extricate yourself from a painful financial situation.
