Recovering from Financial Emergency
With the current rise of global economic and health crises, people’s financial well being is threatened collectively.
I’m not a financial expert. But I know all too well how much money is connected to our mental health and general well being.
Since this is so, we then need to understand enough how it works and own solutions when emergencies do come, albeit unexpectedly.
A psychological approach to financial emergencies involves “unburdening” yourself. This was a lesson gained by Max, a client.
Max maxed out his credit cards. He lost a lot of cash from a failed business. So now, he realized he only had enough in his savings account to cover the next 2 months of basic bills.
Max knew he’s facing a financial emergency. And he wanted to hide it from his wife and family. As a result, he faced sleepless nights and bouts of anxiety panic attacks.
To recover from an impending “zero” financial emergency, Max needed to “unburden.” He had to avoid pretending nothing is wrong and hiding the situation from his family.
By telling his nonworking wife of what’s happening, she can help him by doing her share to cut expenses and even take a job to bring in extra money.
Max had to let his kids see the importance of savings. And, how he’s taking charge of the problem. These are excellent life lessons for them.
The possibility of financial emergency and hardship is real. Apart from the practical steps for revenue rehabilitation or cash infusion, we need to develop a right mindset to weather a money crisis.
Zig Zigler writes on this right mindset when he wrote: “Expect the best, prepare for the worst. Capitalize on what comes.”
One of my favorite stories is about how another client, Pat, got started with her infidelity life coaching and consulting business.
She just got laid off from her job by her company with thousands of unpaid personal credit card bills. On top of that was the emotional pain of her husband’s infidelity.
One day, she put an online ad for her “side hustle” offering fee-based personal life coaching to individuals and couples healing from infidelity wound.
Unexpectedly, from there, clients kept pouring in to see her. Five years later, she’s able to earn millions from her business and got free from debts.
Pat capitalized on her misfortune. Unexpected recovery, yes. But she was prepared for the financial emergency and made it work.
“A big part of financial freedom is having your heart and mind free from worry about the ‘what-ifs’ of life.”
— Suze Orman
www.drsubida.com