It can feel like a huge blow when your big plans fall through when you were hoping for more financial stability. But experts say there’s no need to despair.
“From a financial perspective, coping involves addressing the immediate financial shortfalls left by failed plans,” says Gossamer’s director of growth and financial advisor at the City University of New York. Professor Denis Silshkov said. “For example, let’s say you cancel your wedding and have extra savings from that event. You can reallocate those funds to future savings or debt repayments.”
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But the emotional toll of missing a planned event or financial windfall is often just as heavy as the financial loss, he said. “A shift in mindset is key here. See this moment not as a loss, but as an opportunity to recalibrate.”
Here are some ways experts say you can bounce back in the face of disappointment.
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“The first step in restoring financial stability after the collapse of a large-scale plan is to fundamentally review the financial situation,” Shirshkov said. “Start by reviewing your budget. Your once manageable budget may no longer fit your new reality. We recommend cutting back on discretionary spending and reallocating funds to essential categories. I will.”
He said one example is canceling or downgrading a subscription and reallocating the funds to an emergency fund or debt repayment. “This is a critical moment to be relentless about spending decisions.”
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Shirshkov said it is important to diversify income sources if major plans are interrupted.
“For example, you can instantly increase your cash flow by taking on a side job as a freelancer, renting a room or space, or taking on consulting work.”
Erwin Vico, financial expert and CEO of Slick Cash Loans, said exploring alternative sources of income is important to regain financial stability after a setback. “Consider freelancing or consulting to leverage your existing skills, or consider creating an online course or e-book to share your expertise,” he explained. “Considering freelancing and creating online courses can be very effective strategies for regaining financial stability.”
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Vico said freelancing allows you to leverage your existing skills and expertise to serve clients on platforms like Upwork and Fiverr. “This flexibility not only allows you to earn money quickly, but also allows you to choose projects that suit your interests.”
Meanwhile, Vico recommended creating online courses as a way to generate passive income. “By sharing your knowledge on platforms like Udemy and Teachable, you can reach a wider audience and earn money in the long run when students sign up.”
Both options allow you to diversify your income sources while building on your strengths and regain your financial footing in a sustainable way, he said.
“One long-term approach that is often overlooked is to focus on building resilience, both financially and personally,” Shirshkov said.
This means creating financial buffers, such as increasing your emergency fund, that can protect you from future disruptions.
“It also means developing a mindset of flexibility and adaptability,” he added. “When your big plans go awry, whether it’s a failed investment or an unexpected life event, it’s time to pivot and explore new financial opportunities, such as investing in real estate or starting a small entrepreneurial business. People who are able to explore tend to recover more quickly and sustainably.”
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This article originally appeared on GOBankingRates.com: 3 ways to regain financial stability when your big plans fail
