5 Step guide to help you bounce back from financial set-backs

Published 3rd October 2018 - We’ve all lost our financial footing from time to time but there is always a way back and more importantly a way forward. Here is a 5 step guide to help you bounce back from financial set-backs.

Step 1- Accept the situation

If you have been ignoring your financial situation for a while or struggled to come to terms with it, the best thing you can do is accept whatever health your finances are in. By accepting the situation, you’re already on the road to financial recovery.

Step 2- Do a financial audit

Take stock of exactly what money is coming in but more crucially - what money is going out. Make a list of all the bills you have to pay including your rent/ mortgage, utilities, insurance, phone, food, petrol…gym membership, you name it, write it all down. Knowing what you’re up against will help you establish where you’re up to with your finances even if you have done an audit in the past. It’s worth staying up-to-date to maximise your chances of succeeding.

Step 3- Develop an action plan

Now you know exactly what is coming in and out of your household each month (and what is left over!), develop a plan to repay what you owe or replenish your savings in a sustainable way. Don’t put too much pressure on yourself to get to the finishing line before you’re ready. Make sure you have enough funds set aside to be comfortable without the worry of running out of money before your next payment.

Step 4- Stick with it

Now that your action plan is in place, be strong and stick with it. Sometimes it may be tempting to comfort yourself by spending more money or to ‘treat’ yourself for sticking to your plan but try to resist. It’ll all be worth it in the end. Any further setbacks will only result in your financial goals taking longer to achieve.

Step 5- Plan for the future

Once you’ve started to bounce back from your financial set-backs, now look forward and start planning for the future. Here at Unity Mutual we offer simple savings and investments to help families make the most of their money. We have some great options to suit a variety of needs.

Find out more about savings for you on our website or give us a call on: 0161 214 4650.

 

Please note the information within this guide does not constitute advice. If you require free, impartial money advice please visit: www.moneyadviceservice.org.uk/en for resources and support.