How to Cope With a Financial Loss

There are times in life when we’re suddenly faced with a financial disaster. And it seems to happen exactly at the time when we’re not prepared for any such turmoil in our lives. Especially with the economy going through a tumultuous phase in the last 5 years and eventually starting to recover, most of us have gone through severe financial stress and huge losses that might take a long time to recover.

Financial Loss

However if you keep brooding over the losses time and again, you’ll never be able to achieve peace of mind. Instead, it’s better to let it all go and begin a new journey. Here are some tips that might help:

1. Stop All That Blaming

Generally whenever people incur a financial loss, instead of holding themselves responsible for it, they do whatever they can to make excuses and blame some other person or event for it instead. Although you may feel doing this might help you feel better, it actually does exactly the opposite – making you all the more bitter & frustrated towards life.

So it’s always better to accept responsibility for your actions and stop blaming others. Since you can’t control external circumstances, you’ve always got to be aware of the fact that the results you got are directly related to the decisions ‘you’ made at that point in time.

2. Accept It and Move On

What’s over is over. There’s no point in thinking about it for long periods of time as it’s only going to make you feel despondent and it would never let you move forward in life. So what should you do then?

The best thing to do would be to accept your financial mistakes and just try to move on. The sooner you accept the loss, the easier would it be for you to move forward and achieve better things in life. I know it’ll be easier said than done and your mind will try to play all sorts of tricks on you – reminding you about it repeatedly, but whenever you feel yourself thinking about it, just divert your attention and focus on something else. If you do it diligently over a period of time, all those sad memories will fade away and you’ll be a much stronger person.

3. Recognize What Went Wrong

While it’s certainly a good idea to get rid of the memories that make you sad time and again, you’ve still got to understand what lead to a financial loss for you. May be you were overly bullish on the stock market, invested at the wrong time or got scammed in a too-good-to-be-true get-rich scheme – whatever it is, unless and until you realize exactly what went wrong, you’re likely to make the same mistakes again in the future. So sit down and think about the decisions that backfired and what you could do the next time you’re faced with making similar kind of decisions.

4. Learn From Your Mistakes

Almost everyone fails a number of times in one’s lifetime, and trust me – it doesn’t make you a loser. However successful people are those who learn from their mistakes and do not make those same mistakes again in their life.

What good is your financial failure if you didn’t learn your lessons from it. For example, may be you had no idea how the markets worked, but when you saw your friends and family make a fortune out of their investments, you decided to test the waters and invested your money without realizing the risks, ultimately burning yourself and causing a financial disaster. In that case, you should have learnt the lesson that unless and until you fully realize what you’re getting into, it’s probably best to stay out of it.

5. Try to Make Up For It

I know a lot of people won’t really have the motivation left after a big financial loss to start working even harder and make up for it. However if you don’t do that and just sit back, pondering over the times gone by, you’ll only be moving backwards since you’ll be wasting your biggest asset – time.

So the best way is to think of some alternate ways of recovering the loss, partially or fully. You’ll most likely not be aware of it, but there are countless ways you can make a second income and slowly and steadily recover what you lost. Right now, there is a lot of demand for freelance writers, virtual assistants and other similar jobs that other people are just too lazy to do. So grab the opportunity and do what you can – not only will you have filled up your vault again, but you would probably have forgotten about the loss as well.

Have you experienced a financial loss? How are you coping with it? Do share your advice with our readers.

Comments

  1. These are all great tips! I think, sometimes, we need another person to help kick us out of the funk we’re in and get us going in the right direction (i.e. taking these steps). Having that person that you trust close to you can be a huge benefit if you just went through a financial loss.
    Jake Erickson recently posted…Weekly Recap – May 10th, 2013My Profile

    • Very rightly said Jake. A support group or even a person whom you trust can definitely help you one overcome the grief. Thanks for dropping by!

  2. I’m at the very moment of financial loss, I lost my money in the bank, lost my cars and other assets. I feel so desperate that I don’t know what to do. My debts are high and people I knew before can’t be found. I look for ways on redirecting my mind and ease the pain of being nothing.

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