As my father always told me, “the best way to learn about money is to lose a lot of money.” While this is not advice I suggest people take literally, the wisdom is that through times of hardship, we become smarter and more resilient with time by learning from our mistakes. Whether you’ve lost a ton of cash or your debt is crushing you and your future financial prosperity, I can without a doubt tell you that you can pull yourself out of it, and you don’t need to buy anything in order to learn and apply this sage money wisdom.”
The excellent team over at Montana Standard have put together a very precise, down and dirty, no fluff guide to help you get your house in order. So here are some great ideas regarding their tips and tricks:
Table of Contents
Take stock of your situation
Alright doc, give it to me straight… This is the hardest part of your journey, but this is vital. The only way to be honest about the future of your finances is to be honest with yourself. Without taking into account the decisions and situations which led to this current problem, you’ll be unable to find real and authentic solutions that will help you long term.
Identify ways to mitigate the damage
Maybe you have an income problem, maybe you have a spending problem. By identifying the immediate need you’ll be able to cut out clutter, budget long term, and identify how to avoid getting yourself entangled in situations like this again.
Determine the cause of your error
This takes into account the previous questions. Without learning how to avoid mistakes, you’re bound to repeat them in the future. Whether you made a bad choice, got duped, or what have you, you can’t learn what you don’t know.
Make a plan to prevent similar problems
Maybe you need a budget, maybe you need a financial planner, what you know you need now is a solid plan of action and barriers in order to set yourself up for long term success.
You don’t have to let a money mistake mess up your financial future
Money is important, but it is something that can be replaced. You cannot, however, replace lost time, so take everything into account and spend less time worrying about yesterday, and more time looking forward to a brighter tomorrow.