Is it possible to achieve a financially healthy life and freedom after suffering a substantial financial loss? The answer is a big YES. Start by putting in your heart and mind to make it work for you, and add an unwavering shift of financial mindset.
A significant money loss is akin to a near-death experience. Financially speaking, that is. In the real world, not many people talk about the significance of personal financial health and its impact on an individual’s life. How people take care of their funds and expenses can make or break their overall financial health – or their pockets.
What happens if a person fails to become a good steward of their finances?
The consequences are too many. Some of the effects include no available funds in case of an emergency, being unable to provide for the cost of daily living, harassing creditors, bankruptcy, etc. There’s also the risk of an impending avalanche impact of debts getting out of control if the individual disregards the bells warning that something’s wrong with their finances.
When the worst-case scenario happens, a person’s status becomes financially distressing. Financial distress is what it is – an individual is already struggling to make ends meet, pay bills, and pay loans or debts. In this instance, filing for bankruptcy is the only saving option to remedy the individual’s financial status.
For that much-needed debt help in San Diego, California, the Law Offices of Ronald E. Stadtmueller is a certified bankruptcy law firm that provides debt relief and solutions for businesses and consumers. With offices in Mission Valley, Rancho Bernardo, San Marcos, and La Jolla, the Law Offices of Ronald E. Stadtmueller specialize in Chapter 7 and Chapter 13 bankruptcy, debt reorganization, debt discharge, and other general bankruptcy services.
Bankruptcy is the offset of not having the right financial mindset in the first place. In this case, people need a makeover, a financial do-over, and a money mind shift.
Becoming Financially Fit
Becoming money-fit is not an overnight process. Suppose you’ve just gotten out of an overwhelming financial crisis, or you’re planning to avoid getting caught in a financially distressing situation. Your goal should be to become financially fit and healthy.
It all begins with a change of mindset, a money mind shift.
The only thing that you’ll need to make this work for you is a strong will, passion, flexibility to adapt the right money mindset, and discipline to follow through.
Here are some money mind shift tips that can start you off the road to becoming financially healthy.
Understand Your Financial Situation
This entails calculating your current income versus your expenses and debts. The goal is to get the bigger picture of where you are in terms of finances. To do this, start by jotting down all your income sources. It could be from salary, business profits, allowances, government benefits or cash aids, etc.
Next is to make a list of all outgoing expenses. Expenses could include essential daily expenditures such as food, clothing, loan, bill payments, etc. Compare your income against your outgoing expenses. If you still have a balance left from your income after deducting all the costs, you’re still financially safe and would probably need just a few income-increase tweaking strategies.
But suppose your income is insufficient, and you still have outstanding payments after deduction. In that case, that signifies that you’re financially off and unhealthy.
Save and Invest
Adopt a saving and investing kind of mindset. The best way to future-proof your finances is to start saving early and invest your money. Whether a passive or active investment, the goal is to increase your savings and beat back inflation’s aggressive future costs.
Opening up a savings account and religiously depositing a portion of your income into it is the first step. But it will be your investment that will serve as your ladder toward financial freedom. Before starting to invest, make sure that you have a good solid financial investment foundation. Learn how to diversify your investment and not just put all of your money into one egg basket – a financial portfolio – to spread and reduce investment risks. Learn to research and listen to expert advice coming from authoritative sources.
Avoid the “The Grass is Always Greener on the Other Side” Mindset
If there’s one thing that you should run away from, it’s having this kind of mindset! The above idiom depicts the human quality of an individual craving for what other people have instead of the individual focusing on what they need at the present moment. It is a pitfall mindset of chasing after other people’s circumstances, thinking that owning the same material things other people have will give them greater joy in life.
Stop right there. Shift and focus your mindset on things that can serve you, your finances, and your future better.
Forgive Yourself from Your Financial Blunders
It is hard to deal with oneself after committing mistakes such as wrong investments and hoarding loans and debts. That self-blaming factor comes into play, making it all the more difficult to move on and start life again.
Forgive yourself if you’ve made a substantial financial blunder, and learn from the experience to avoid repeating the same mistakes. Forgiveness can detach yourself from the grips of self-condemning and enable a self-empowerment mind shift that will serve useful to pull yourself up and be financially fit and free.
Diving into that deep pitfall of financial loss and distress is a near-death experience – in terms of finances, that is. But all is not lost, and there will always be hope for those who aim to survive. Strive to regain your financial control, recover your economic life, and be financially fit by shifting your mindset from your old money habits. Talk to the experts who can help you get back on track, such as the Law Offices of Ronald E. Stadtmueller. Being financially healthy is not impossible. All you need is just the right money mind shift.