When you think of a traumatic event, physical suffering and mental anguish are perhaps the first things that come to mind. But your finances also tend to suffer, right? Whether you’ve been through an accident, natural disaster terror attack, or personal tragedy, your finances are likely to go out of control. That sounds scary, but it happens!
Image by Gerd Altmann
According to a recent survey, 46% of Americans believe that their financial situation isn’t great. Many of them face a setback due to a traumatic event. The reasons are evident- you may have long medical bills and low or no income to pay them off. But a little guidance and some smart strategies are enough to get your money on track and build a brighter future.
We’ll help you explore a few actionable ways to navigate financial recovery during tough times. Here are some measures to empower you to take control and live your best life, no matter how challenging life seems.
Take stock of your situation
This one’s obvious- how can you find the road back unless you know where you currently are? The first step for financial recovery is to take a good look at where you stand right now. You can do it by pulling up your bank statements, credit reports, and other financial documents.
Go through them to check your current income, expenses, assets, and debts. Surely, it may seem like a lot of work, but it’s worth it. Understanding your financial picture helps you make more informed decisions about moving forward.
Work out a realistic budget
Once you know where you stand money-wise, it’s time to plan your next moves. Budgeting is the most crucial tool in your financial recovery process. Well, budgets sound boring and restrictive, but a realistic one promises an easy comeback after a disaster. Moreover, it ensures a comfortable life.
You can rely on it to pay bills on time, prioritize your spending, and avoid overspending. Just try the old-fashioned way to crunch the numbers on pen and paper, or use a budgeting app for the job. Remember to factor in your medical expenses if you’re dealing with injuries or post-traumatic stress.
Set actionable money goals
One of the most daunting things about financial recovery is staying motivated amid slow progress, physical pain, and emotional stress. You can overcome these challenges by setting actionable goals that you can actually achieve.
Maybe you want to pay off your debt within a specific timeline. Or you expect to build up your emergency fund to deal with a crisis in the future. Breaking the goal into achievable milestones keeps you motivated as you see progress.
Find ways to get compensation
Many times, people going through trauma are entitled to compensation. Let us consider the victims of the 9/11 attack, which is perhaps the worst traumatic event in the country’s history. Victims can file a 9/11 claim under the Zadroga Act to seek compensation for the illnesses caused due to toxin exposure.
All they need is expert legal guidance from 9/11 lawyers to ensure eligibility and follow the right process. The compensation is enough to get your finances on track as it covers medical bills, lost wages, and the cost of pain and suffering.
Look for ways to boost your income
Think beyond the financial compensation because it is a one-time thing. You’ve got to look for a lasting solution to get your money back on track. When financial stress is around, you may focus solely on cutting expenses. But increasing your income can make a big difference.
Depending on your skills and situation, you can explore many ways to boost your income. Consider taking on a side hustle, asking for a raise at work, renting out a spare room in your home. or selling your unused stuff. Every dollar helps!
Seek support during tough times
The road back from a traumatic event seems long and arduous, but you don’t have to go it alone. There are resources to help you get back on your feet, whether you’re dealing with a personal tragedy, the aftermath of a terror attack or accident, or an economic downturn.
You can seek financial counseling or coaching, join a support group, or get advice from a professional. Even talking to friends and family about your situation can bring some valuable insights.
Conclusion
Getting your money back on track after a traumatic event is no mean feat. Financial recovery is a personal journey, so it’s not the same for everyone. But with a little effort, strategic thinking, and determination, you can rebuild your finances and live the life you deserve.
