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Getting Back on Financial Track After an Accident

When you have had a financial setback after an accident, recovery can seem like an impossibility; however, you can get back on financial track with smart planning and wise budgeting. It may take a little while, but it can be accomplished.

First Things First

In order for you to be successful getting back on financial track, you will first need to adopt the proper mindset, if you haven’t already done so. As Henry Ford once said, “Whether you think you can or think you can’t, you’re right.” The biggest hindrance to successful financial recovery is internalizing the belief that you won’t be able to get back on track.

Keep things in perspective. Don’t overreact to your situation. Remember, this is a temporary setback, and you can overcome it. Know your weak spots. If you tend to handle stress with retail therapy, i.e., shopping, now would be a good time to find a more proactive way to deal with adversity. Spending uncontrollably or taking more risks with the money you have will lead to more financial problems instead of fewer. Do you need to learn to be happy about your current financial situation? No. It is what it is. You need to accept it and find ways to change it.

You Are Not Alone

In times of financial difficulty, it is quite easy to feel alone. In fact, there are a plethora of emotions tied to financial worries. The truth is, you are not alone, and you don’t have to navigate these waters as if you were. Sometimes, having a trusted friend or family member to vent to can relieve a lot of stress. Professional help is also available to help you get back on financial track. You may be able to access financial counselors or advisors through non-profit organizations. Sliding-fee scales are often available to those experiencing financial hardship.

Get a Clear Picture of Your Situation

It’s important to know what you have to work with. Create a list of your expenses and your income. From these lists, you can create a budget, and you can get an idea of what deficits need to be addressed and find places you can save money. Certain bills are non-negotiable when it comes to payment. You need a roof over your head, you may need transportation, and you certainly need food. Prioritize your expenditures and realize there is a difference between wants and needs. For now, you are focusing on needs.

Create a Plan to Get Back on Financial Track and Stick to It

The practical part of your plan will be your budget. Many people have found it helpful to prioritize their bills and pay a little on all of them, paying off the smaller ones first. As those small bills are paid, that amount of money goes to the next bill in line, the largest bill or gets divided between all the bills. The point is that when a bill is paid up, the same amount of money goes to work chopping down the size of the next one until all outstanding bills are paid and/or current.

The other part of the plan is to make sure you take care of yourself during these stressful days. Avoid those habits that can be detrimental to your health and financial recovery plan. Getting back on financial track takes a will to succeed and determination to carry through with the plan. It will take time and discipline, but imagine how good you will feel when you reach the light at the end of the tunnel.

If your distress is due a matter involving personal injury, you may benefit from appropriate legal counsel. Frohlich, Gordon & Beason, P.A., is a law firm that specializes in personal injury. Contact us for a free initial consultation. We have offices located in North Port, Englewood and Port Charlotte, serving southwestern Florida.

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