Being hit with a major financial setback can make many people want to give up on their financial goals. You do not have to let this happen to you. There are a multitude of steps you can take to regain control over your financial situation to move back on track to your financial goals. Consider consulting with a Tullahoma bankruptcy lawyer to explore additional financial options after a financial setback.
Common Financial Setbacks
Some of the most common financial setbacks include an expensive medical bill, car repair cost, home repair cost, or accident-related costs. Losing a job, having your income cut down, and not being able to find a new job can also cause financial setbacks. Even if one spouse is let go from a job while the other spouse is working, this can still offset financial plans.
Many people panic when they face a major financial setback due to the uncertainty of what could happen. Not knowing what will happen or if they will be able to financially recover is what leads so many people to lose hope. You do not have to fall into this category. There are several steps you can take to recover from a financial setback.
How to Recover from Financial Setbacks
One of the first steps to recovering from a financial setback is to assess your current situation. This involves a financial inventory to examine the financial setback and the effect of this on your current finances.
A financial inventory means adding up all your income for each month and for the year, minus taxes. Taking a financial inventory is like budgeting because this also involves subtracting your common monthly expenses from your average monthly income. This will show you how much money you have left over each month and where you can cut unnecessary spending.
List your debts to gain a better idea of what other expenses you may face now or in the near future. This is where the hard part comes into play. Start cutting out as many unnecessary expenses as you can for however long you need to recover from your financial setback. Recovery from a setback means you have paid off the setback fully and have returned to your usual financial status.
The process of financial setback recovery also means creating a practical plan for how you are going to financially bounce back. Not only does this mean budgeting how you will pay for the setback but also building your finances back up. This can look like making temporary sacrifices to build an emergency fund for future setbacks and selling items to speed this process up. Cancelling trips and other future spending may also help with this process.
Contact Tom Bible Law for Legal Aid
You may not have to deal with your financial setback alone. Start by calling us at Tom Bible Law by dialing (423) 424-3116 for a consultation today about your financial situation. Our legal team of Tennessee bankruptcy attorneys might be able to help you escape your financial setback through bankruptcy. We are located throughout the Tennessee cities of Chattanooga and Tullahoma.