Recovering From Financial Mistakes [Final Part]

There may be times when someone may take a particular wrong financial step or may make some mistakes as regards their financial decisions. Yes, as human beings are concerned, no one is immune to mistakes, but what one can do is to find a way to recover from the mistakes and then set things right to prevent future occurence. In our last episode, we looked at ways in which one can effectively recover from a financial mistake and of course learn from it. Here, we shall take the concluding part of measures to put in place on how to move forward even after someone has experience financial setbacks.

1. Make a financial plan and stick to it

More often than not, why many people fall into financial improprieties is because they lack a plan to guide them on their financial activities. Imagine in a football field and there is no goalpost, every player will run around randomly, expend energy, and still end up not achieving anything. In the same way, your plan gives you what to work with and keeps you focused. For example, you may have a plan that you will be saving a certain percentage of your income and at the end of the month, you will invest it. With this plan in place, you will limit the unnecessary expenses you would have made because you know that there is something you must do.

Your plans or goals can be immediate (that is short-term) or can span a while (long-term) but whatever the case may be, you should not live your life without a plan. More importantly, without a financial plan, you are already running at the risk of financial improprieties. Your plan can also include budgeting; that is stating how and what you want to spend on. Apart from the spending budget, your plan should also include having an emergency funds for a quick bailout from financial challenges. It is when you have a financial challenge that you will understand that the help you give to yourself is oftentimes the best and quickest help you would ever get, so save for it.

However, after you have created your plans and your goals, there is a need to follow it and give it all it takes. Here, you will need discipline and determination to be able to stick with the plan. This is because many things may come to distract you from your plans or may even want to discourage you but if your discipline is in place, you will stick to it. You have to note that making a plan and not following it is the same thing as not making any plan in the first first. Obviously, it is not the attempt that matters, nor the intention, but the results that have been gotten from the actions. So as you make your plans, also resolve within your mind to follow it to the later.

2. Find other sources to earn extra money

Most times, it may not be enough to cut one's expenses or to have a budget plan because there are some necessary expenses that one cannot do without. In the event that the primary one is not enough to take care of your bills and provide necessary needs, you can complement it with a secondary one. Now that the internet has brought the world a bit closer, it has also opened up the world to a whole lot of money-making opportunities.

You do not have to go broke first because you get an extra stream of income, you should do it as a precautionary move to prevent it from happening. Even if the money you make from you second source of income may not be much or may even look insignificant, it is still worthwhile and you can be saving that as an emergency funds and you will be surprised how big it will be when accumulated overtime. There are even times that the secondary source of income can become the succour to the first one and even grow to become the main source of income. This is why it is said that:

We should not look down on the days of small beginnings

The little extra cash you make is still worthwhile because money does not fall from the clouds, so keep at it. Meanwhile, there are financial risks that you can easily avoid if you have other streams of income. More so, the world is already very uncertain and even your primary job may not be guaranteed over the time, so you do not have to depend solely on it. This is because if your primary job is your only job, and if anything happens to it, you may be devastated. But if you have an alternative source of income you can make do with that until you get back on your feet.

Thanks for reading