Ouch, That Hurt
Hitting a financial hitch in life is becoming more and more prevalent. Although it cannot always be prevented, it can be weathered through and pulled out of. If you have hit a financial roadblock and are looking at needing to repair the damage that has been done, don’t worry, with a little hard work and perseverance, you too can rebuild.
Don’t Dwell on the Past
What happened is what happened and there is not a thing you can do to change it. The best thing for you to do is to gather all of the information you can from what occurred and then forget about the rest. Once you have this information, you will then have the answers you need to be able to proceed forward.
The information you will look at will include your spending habits, bills, credit report, budget (if you have one), income, any anything else that has to do with money coming into and going out of your pocketbook. Once you have this information together, you will need to determine why it is that you are in the position you are in. Often times our financial situation is due to outside forces that we do not have much control over, however we still need to find control anywhere we can when it comes to our finances. Find where you have control and work within those parameters.
Live in the Present
When making a financial plan, it is imperative to make your budget from what you are currently making, not on projected income. Make sure that it is reliable income that you can count on to come in on a regular basis. Also, live below your means, not at them as situations can and will change at a moment’s notice. You want to ensure that you put up safety blocks in case you find yourself back where you were to begin with. So, make a plan and work the plan.
Look Ahead to the Future
Once you have forgotten about the past and have learned about the present, it is now time to start preparing for the future. One of the first things you should do is to set up an emergency fund so that you can give yourself some breathing room. Put aside as much as you are able, but probably do not need more than a thousand put away. This money will be to take care of things like auto repair (to get your car running, not to improve upon it), medical emergencies, insurance deductibles, repair/replace appliances, and any other emergency that you may encounter.
Another piece of looking ahead to the future is to rebuild your credit. In most cases when financial disaster strikes, it’s our credit that takes the biggest hit and has some long lasting effects. In order to get yourself back up and running, work within your means to get your credit score up to snuff. If you have credit that you are paying on, continue paying on it on time. If you have lines of credit that are at their maximum limit, reduce the balance down to well below the limit. If you have collections, make the arrangements to get them paid off. If you don’t have any credit to work with, find a way to open a small line of credit. This can be done by talking to your bank or even by finding credit card companies that offer lines of credit to those with adverse credit situations.
Regardless of where you came from, you can make a plan for where you are and make the change for where you want to be. Do not continue to look into the past. Instead, live in the present while looking toward the future. A little hard work can get you where you want to be.
Andrew Bennett is a financial consultant who advises his clients to consider adverse credit cards to rebuild their credit.
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