How to survive your own financial crisis

A personal financial crisis can be the result of a variety of events: job loss, divorce, bankruptcy, sudden medical expenses, or any other event that results in loss of financial stability. Whatever the cause, the consequences are always the same: stress, confusion, inability to control the situation, loss of self-confidence. While it may not be easy to get through a financial crisis, it is important to remember that it is possible to regain control of the situation. Everything can be improved if you get together and start acting.

How to regain control of the situation

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Know that negative emotions are completely normal. Before you begin to correct your financial situation, it is important to deal with your emotions. You should come to terms with the fact that emotional problems are a natural part of the process. Depending on the situation, you may experience stress, depression, or anxiety, which may be accompanied by feelings of guilt or complete failure. You may also feel like you are no longer in control of your life.
All these emotions are a natural part of the financial crisis. At first it will probably be difficult, but gradually all these feelings will fade away if you adapt to the situation and begin to control what is happening again through active actions.

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Accept your financial situation. In difficult situations, people often try to ignore or deny the problem. This eases the emotional state, but does not help in the long run. It is important to accept your situation in order to be able to work with your problems and solve them yourself.
Accepting the situation is the first step towards resolving it. Try to direct all your energy towards positive actions and concrete solutions. For example, instead of continuing to think about the problem or blaming yourself for what happened, promise yourself to solve the problem at all costs.

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Talk about your situation. Tell friends or close relatives about the problem to help you feel better, and talk out loud about possible solutions to the problem. Your interlocutors will be able to give you advice based on their personal experience or the experience of their friends. These people will not only provide you with emotional support, but also suggest other, more productive ways to solve the problem.
If you can’t manage your emotions on your own, see a psychologist or therapist. If you’re feeling depressed, anxious, or thinking about hurting yourself because of the financial crisis, you should definitely seek professional help.

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Be honest with your family. Tell loved ones that you are going through a financial crisis. Perhaps someone will lend you money. But even if your family can’t afford to help you financially, talking to your loved ones will save you some of the stress.
Most often, children should be told about the financial crisis, because you will have to give up some of their activities (music lessons, summer camp) in order to keep the family afloat. But do not forget to explain to the children that these changes are temporary.
Encourage teenage kids to find part-time jobs. If children are over 18 years old, offer them to pay you rent.

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Keep a positive attitude. Before you take action, make a promise to yourself to think positively. Think of it this way: while you can’t control the cause of a crisis, you can choose how you respond to it. A positive attitude will improve your mood, reduce your stress levels, and help you solve problems constructively.
Remember that no matter what the situation, other people have already experienced something similar and overcame difficulties.
Be grateful for what you have now. For example, if you have lost your job and owe a large sum of money, remind yourself that you have the support of friends or relatives.
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How to assess your financial situation

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Find out what assets you have. The first step to normalizing the financial situation is to analyze your finances. First evaluate your assets. Assets are everything you own. Assets are the basis of financial stability. They include all valuables in the house, money in accounts (including savings), the value of a car, and all money in retirement and investment accounts.
Assets can also include other valuable items: jewelry, collectibles. Take these things to an appraiser or try to estimate their value yourself using the Internet. So, if you decide to sell them, you will know how much you can expect.