Turning Setbacks Into Success

by Justin Weinger on January 28, 2013

Turning Setbacks Into Success

In the past several years, the economy has been worse than it has been in many decades. Many businesses and individuals have endured difficult financial times. While it is easy to lose hope in situations such as these, it is possible to rebound and become financially independent again. Here are some tips to help you turn your setbacks into success:

Don’t panic.

It is scary when you face a serious financial difficulty. People tend to panic, but this can often lead to making decisions that are irrational. 

Don’t let pride get in the way.

It can be embarrassing to not have any money. Therefore, people will often try to keep up appearances by keeping a house or car that they can’t afford. Some people will turn down a job they feel is beneath them because they are afraid people will make fun of them. Obviously, these choices only cause a bad situation to become worse. Financial setbacks are not permanent or personal. A person should do what they have to do to get through the rough times. Don’t let pride enter into the equation.

Be proactive. 

It is hard for many people to be proactive. Do not wait for your ship to come in. Instead, swim out and meet it. If the check engine light on your car goes on, do not ignore it hoping the problem will go away. Have the car fixed immediately. This will prevent you from spending more money down the road when the problem gets worse. President and CEO, Ehsan Bayat of the Bayat Foundation is a great example of a person who has overcome business challenges to become more successful in the end.

Check your credit report.

Obtain a copy of your credit report. Verify that it contains only accurate information. Many people are denied credit or loans because of simple mistakes on their credit report that can be easily fixed.

Track your spending.

If you have never been good at maintaining a budget, now is the perfect time to learn. You should begin tracking your expenses and income. This will allow you to know where your money is going. It can also give you needed peace of mind.

Create an emergency fund.

Start to create a savings account that is at least $4,000. This fund will allow you to sustain yourself during a prolonged period of financial crisis. Some examples of this would be getting fired or going through a divorce.

Most of us will have a down period in out lives. Being prepared for that down period will determine how long it takes to dig out of it.

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