7 Tips for Rebuilding Your Life After Financial Hardship

June is Rebuild Your Life Month. During this month, people should take a moment to reflect on the way they’re living their lives. If you are experiencing financial hardship, this is an especially smart time to address your financial issues and restructure how you manage your assets and finances. With the right mindset and a strategic approach, you can rebuild your life and regain financial stability.

How to rebuild your life after financial hardship

Our Georgia estate planning attorneys are sharing these seven tips to help you rebuild your life after financial hardship. 

1. Create an Inventory of Your Assets

When you’re facing financial hardship, it’s essential to gain a comprehensive understanding of your situation. The best way to begin this process is to create an inventory of your assets. Start by listing your savings, investments, properties, and any other valuable possessions you may have. Having an inventory to work from will provide a clear picture of your assets, giving you a foundation to make informed decisions about your future.

2. Set Your Financial Goals to Create a Vision for Your Future

To rebuild your life after financial hardship, it’s crucial to have a vision for your future. Take some time to reflect on your values, aspirations, and what you want to achieve financially. Set “SMART” goals, which are goals that are:

• specific

• measurable

• achievable

• relevant

• time-bound

These goals should align with your vision, including anything from paying off debt to saving for a down payment on a home. Having clear goals will motivate you and provide direction as you navigate your way toward financial recovery.

3. Create a Budget and Set Up Emergency Funds

Creating a budget is one of the most effective ways to regain financial stability. A budget helps you track your income and expenses, allowing you to identify areas where you can cut back and save money. Ensuring your budget is realistic and aligns with your financial goals is important. Also, allocating some of your income towards building an emergency fund is good, as unexpected expenses can derail your progress. Aim to save three to six months’ living expenses to provide a safety net during challenging times.

4. Find an Accountability Partner

Rebuilding your life after financial hardship can be daunting, but you don’t have to do it alone. Find an accountability partner willing to support and guide you on your journey. Make sure the partner you choose is someone you trust and has a strong financial foundation. This person can help you stay motivated, provide valuable advice, and hold you accountable for your financial decisions. Having someone to share your progress and setbacks with can make a significant difference in staying on track toward your goals.

5. Create an Estate Plan

Financial hardship is a stark reminder of the importance of planning for the unexpected. Creating an estate plan is crucial to protect your assets and ensure your loved ones are cared for in the future. It is advised to consult with an estate planning attorney to guide you through the process. To learn about the three main estate planning documents you should have, refer to our previous article here.

At Smith Taire Legal, our knowledgeable estate planning attorneys can answer all your estate planning questions, help you draft a will, and explore options around healthcare directives, powers of attorney, and beneficiary designations. Taking the necessary steps to create a solid estate plan can provide peace of mind and protect your financial interests for years.

6. Weigh the Value of Professional Help

Rebuilding your life after a financial setback can be complex and challenging. Seeking professional help may seem counterintuitive during times of hardship, but often it’s the smartest choice you can make to change the trajectory of your life. Consider consulting a financial advisor or a credit counselor who can provide expert guidance tailored to your situation. If an accident, personal injury, divorce, or the wrongful death of a family member led to your current financial struggles, the attorneys at Smith Taire Legal can provide the expert advice necessary to help you get your life back on track.

7. Plan to Reassess

Financial circumstances can change over time, so you should reassess your progress periodically. Set aside regular intervals to review your financial goals, tweak your budget, and make other necessary adjustments. Life is unpredictable, and your financial plan should be flexible enough to accommodate unforeseen circumstances. Continually reassessing your situation will help you stay on track, make responsible decisions, and ensure you’re aligned with your vision for the future.

Contact the Smith Taire Legal Team to Schedule a Consultation 

Rebuilding your life after financial hardship is a journey that requires strategic planning. Estate planning should not be overlooked in this process. If you need assistance creating or revising your estate planning documents, Jammie Taire and the Smith Taire Legal team can help. We educate our clients on their estate planning options and ensure their final wishes are legally binding. Call us at 678-253-8133 if you have questions about your estate planning or wish to meet with an experienced Georgia estate planning attorney.