How to Get Back on Track When Financial Calamity Strikes

When financial calamity strikesUggg…bye-bye savings, hello debt… again.

These are moments when financial emergencies erase everything you have worked so hard to achieve. Dave Ramsey would say it is in those moments when Murphy comes to visit… as in Murphy’s Law. It happens to us all from time to time and well it just sucks. It is hard to watch your progress be undone, your savings melt away, or your fun money become not so fun.  When the planets collide, the stars explode, and everything conspire to screw you.

It is those moments when a calamity of costly events converge. For example, you find yourself with illness or injuries that require medical attention (aka doctor bills.) At the same time your car breaks down, your roof leaks and the washing machine explodes. It is during these times when you feel like you are being buried financially.  Really it is all just the timing of things. If we planned a little better we might have been able to avoid the stress of converging events.

So then we have to ask ourselves what could we have done set ourselves up better when these things occur. Lets face it, stuff happens and more often then not it is going to happen at the most inconvenient time. Like right before a major trip, or after you just finished unburdening yourself from a large debt. Here are some things to consider when financial calamity parks itself at your door.

Don’t beat yourself up

Sometimes all the planning in the world won’t prevent Murphy from coming to town. The best thing you can do is accept the situation and make a plan to prevent it from happening again. Yes, it sucks. Give yourself a few minutes to feel bad, then get down to the work of digging your way back out.

Know it is only temporary

You got out of debt once your will do it again. Even though your situation might seem like it will never go away (like the college loan that takes forever to pay off.) If you keep in mind that you have already know the way to get out of debt and get on better financial footing. So this time around it will not take as long to recover.

Don’t give up

I know it is easy to start spending when you are already outlaying a huge chunk of money for car repair, home repair or another big expense. You might think, “what is another few grand I might as well tack on a couch or vacation expenses to the bill.” This will only dig you in deeper. It is a slippery slope once you start to spend. Soon you will find an excuse to wipe out your hard earned savings or run up that credit card you worked so hard to pay off.

Make a new plan

The key to this experience is to get though it and learn from it. After going through a major financial set back you are that much more educated to prevent it from ever happening to you again. We can all be caught off guard when these things happen. That is why an emergency fund is used from “emergencies.”  Here is your opportunity to make a new step by step plan to avoid this type of setback in the future.

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