Anyone can go through a financial downturn. It is something that is the order of the day, but, really financial failure can be overcome? Yes, it can be overcome.
In the following guide we will analyze the importance of learn to manage our finances well, to try to avoid an economic failure. Because although it can happen even to a successful expert or entrepreneur, laying a good foundation is important.
Guide | You are not alone, you can overcome an economic failure
If you are alone in the face of economic failure, know that everything has a solution. In some cases, it is just matter of timebut you must try to be strong and keep your composure, because you will have to work as hard as you can to get out of that situation as soon as possible.
The most important thing is to recognize it. That is to say, it is realize that you have a problem and how you got to that situationsomething that usually happens after a chain of bad decisions.
What actions can lead us to fail in economic matters?
enter a bubble of requesting successive loans or deferring purchases because you don’t have money to pay them in cash, it can be dangerous. If any unforeseen event happens such as losing your job or spilling very expensive, you could not have the capacity to assume the debt, leaving you bankrupt.
It can also happen in the case of an entrepreneur who makes a series of economic decisions without considering the viability of his business. Although it is true that we do not have a ball of time and there are projects that, even being incredible, can go wrong.
In many cases, the waste of money is linked to emotions. These emotions cloud consent and it makes people go with the flow to satisfy their emotional needs at that precise moment. The problem is that getting carried away more than necessary can lead to financial bankruptcy.
But this is not all, because in the most serious cases, the waste of money can even cause problems in the family environment. Deceit, loans of money to relatives and friends who foresee that they will never recover it, etc. They are emotional situations that can affect your self-esteem, your finances and your personal life.
The key is to realize that things are not going well and that you have to stop. Try minimize expenses and live with much less, until a balance is achieved. But under no circumstances should you continue to blame others or play the victim, because that way you will not be able to get out of the problem… You must learn to stop and react in time, before it is too late.
How can I avoid falling into this situation?
There are many practices that you can follow. One of them is knowledge. For example, follow a series of good practices each month:
- Calculate the money you spend per month on essential things and multiply it by 6. Do you already have the result? Well, that is the amount of money you need to have separated in a separate account. It is important that it be in a secondary account, intended for the savingso you won’t be tempted to spend it on any whim.
- Don’t spend more than you earn. It sounds very simple. However, today people are more likely than ever to put off everything they buy. When they realize, they have many debts accumulated on the card and any unforeseen event, such as losing your job, can force you to have to request a loan to pay them off or to continue deferring them with much higher interest rates. Be careful!
- If you can’t pay for something in cash, think twice before buying it.. As we told you, today it is customary to pay everything in installments because otherwise “you can’t”. But do you really need what you are going to buy or can it wait? If you don’t have money to pay it in cash right now, putting it off is a risk. Avoid unnecessary risks if you want to avoid financial failure.
Laying a good financial foundation can change your life and can help you avoid possible financial failure. For example, with the help of the personal finance program that we at have designed for you. Just by following the tips we give you, you can save up to 5,000 euros more per yearso you never have to worry about money again.
How long can it take to overcome financial failure?
Depends on gravity. But more than time, after admit the mistake it is essential to start following good financial practices and try to work as hard as possible and save money. You must be able to spend as little as possible, to live with as little as possible. And, above all, not to fall back into the loop of infinite spending without control.
And you, do you think you can overcome such a situation?