Life is filled with opportunities and setbacks. Whilst it’s important to keep yourself open to new positive opportunities, setbacks can happen at any time.
Often among the most inconvenient and sudden of these are financial setbacks, which can significantly affect our lives and cause a lot of stress. However, at Salad Money, we don’t believe these setbacks have to define your financial future.
With the right strategies and financial recovery plans, you can effectively recover from any setback and live life to the fullest.
That’s why this article is designed to help you recover from financial setbacks, to help you regain stability and get back on track.
We’ll discover 3 unique strategies that can be used to improve your financial habits and how you can incorporate them into your daily life. Whilst they’re not immediate fixes, they’ll help support you for future setbacks and make getting back on track easier.
1. Budgeting & Saving With Tools
Understanding your finances is always the first step to recovering from financial setbacks. With so many financial tools and applications available on the market, managing money has become easier than ever.
Before you take any other step, it’s crucial that you leverage the latest budgeting tools and technologies to get your expenses under control. When you have a budgeting app that manages your expenses and income, you can track exactly where your money is being spent.
By better understanding your income and outgoings, you can start to cut back on unnecessary expenditure and start to save more money to balance your finances.
Next, you need to make the most of automated saving options that allow you to transfer a small amount of money to a separate savings account. This is the easiest way to start saving money, without the temptation to spend it on non-urgent expenses.
A great way to do this is with many digital banks “round up” savings features, that round up your last purchase to the nearest pound, and put the difference into your savings.
2. Engage in Financial Education Programmes
The best financial recovery plans are those that leave no scope for financial setbacks in the future. This is something that can be achieved by taking part in various financial education programmes.
The only way to get better is to learn how to do it. With so many online resources such as YouTube videos, articles and courses, there’s so many opportunities to gain more insight into managing your finances.
These insights will make it significantly easier for you to recover from your financial setback and hopefully reduce the likelihood of it happening again. By exploring concepts like credit score improvement, budgeting techniques, debt management, and more, you will soon be an expert at personal finance.
3. Implement Mindful Spending Practices
When experiencing financial setbacks, we often don’t realise the effect it has on our minds.
Financial setbacks can be stressful, which can lead to us making actions that make our situations worse. This search for instant gratification can take forms like eating out, binge watching, or compulsive shopping. This not only prevents you from finding an actual solution to your problems but can also lead to overspending.
That’s where mindful spending comes in.
Mindful spending is the practice of carefully tracking your spending habits and only making an expense after thorough consideration.
First, keep a daily diary of your expenses and analyse your spending patterns. This will help you understand any triggers that lead to unnecessary spending. Using a digital banking app can make this much easier, but writing it down may make it easier to follow.
Second, have a strict 24-hour “cooling period” for all non-essential purchasing decisions to think it through before buying. This period will help you decide if you really need to buy something or if it’s just an impulse purchase that you may regret later.
These two simple daily practices should make it easier for you to keep track and manage your money.
Choose Salad Money for Fair and Affordable Personal Loans
Now that you know how to navigate your way back from financial setbacks, it’s time to implement these strategies into your life. Not only effective for financial recovery, these strategies are also great tools to achieve financial stability.
However, we understand that financial setbacks can significantly affect your current situation, making it difficult to implement new ideas. This can be even more difficult if you’re struggling to make ends meet.
If you ever find yourself in a situation like that, know that you can rely on Salad Money.
As one of the leading online lenders in the UK, we realise that life and financial circumstances are different for everyone. As a result, we believe credit scores aren’t the best way to judge if someone should be given a loan.
That’s why we are here to provide you with fair and affordable personal loans, regardless of your credit score.
Unlike traditional lenders, we use a unique affordability assessment system that considers your current financial situation instead of your history. This allows us to offer you the loans you need when you need them.
What’s more, Salad Money is authorised by the Financial Conduct Authority (FCA), so you can rest assured that your financial data is safe and secure.
To learn more about our personal loans, click here and to read more blogs like this one, visit our blog page now!
