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Home > What To Do When You Are In A HUGE Financial Mess

What To Do When You Are In A HUGE Financial Mess

March 2nd, 2009 at 10:23 am

I have met a ton of people who are experiencing the harshness of the following two key items:

* No Plan, No Savings, Piles of Debt
* Loss/Reduction of Income

Here is what you can do when faced with this situation.

1. Cry. It is OK to be regretful for awhile!
2. Take time to prioritize who will get paid and who will not get paid. (Read the post I wrote http://iwasbroke.savingadvice.com/2008/11/18/help-i-cant-pay...about priority order.)
3. Write out your goals. Make sure they are SMART.
4. Prepare a written spending plan (even if you know that it will not balance to Exactly Zero). This will allow you to fully understand your "Go Get This!" number.
5. Take ACTION!

There can be a tendency to just focus on #1 and hope for everything to just work itself out. Usually, this is not the case. Recovering from this type of issue is emotional and gut-wrenching, but it requires one to take action.

You CAN recover from the mess!


1 Responses to “What To Do When You Are In A HUGE Financial Mess”

  1. frugaltexan75 Says:

    When I was laid off a few weeks ago, I luckily had no debt and had a good amount of savings. But I sure did a lot of #1(cry.)

    Now I am working on making a spending plan to utilize what I have, and what I can get from part-time odd jobs the best way possible. The time for boo hooing over my situation is over - time for action! Big Grin

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