Recovering After a Financial Strike

Brian Watson, CFP

Life can throw many different things your way. Some work out in your favor, others do not. Do you feel that the people who are successful financially have received all the breaks? Do you feel your financial luck is always working against you?

Whatever your current financial situation is, there is no such thing as too late. If your finances have been "on strike," let's talk about how to rebuild your financial future. The first thing you must realize is that, moving forward, you are either making smart financial decisions or you are not. If you have a "what good will it do now" attitude, you must trade that in for an "I control whether I'm successful" attitude.

If you have made poor financial decisions in the past, forgive yourself. It is time to move on. Learn from your mistakes. Commit to becoming proactive. Feeling bad about your past or helpless about your future will not do an ounce of good for you. Eliminate any baggage from the past and move forward.

If you have made investments in the past that did not work out, you must also get past this. You can either let it hurt you forever (by allowing it to hinder your ability to make smart decisions in the future) or you can limit the loss to the past. Again, move forward.

There are a couple more basics that you must understand and apply when you are trying to get back on your feet. First, you must make sure that you spend less than you make.  America has become sick with a financial disease called overspending. Unlike all other diseases, you have total control over it. If you don't have it, you can keep it that way. If you do have it, you can cure it: spend less than you make.  

Plan ahead for future financial goals. If you want to retire one day, you must save a portion of your income and invest it. The biggest advantage you may have is time. The longer amount of time you have until your goal, the more compounding of growth you can experience. 

The best decision you can make is to educate yourself on various financial concepts. Research and read to arm yourself with knowledge. Nothing is more powerful than being educated.  Another option to consider is working with a professional. 

Brian Watson, CFP
Koss Olinger Financial Group
2700-A NW 43rd St
Gainesville, FL 32606
(352) 373-3337
brianw@kofinancial.com

Prosperity Partners, Inc.
800-868-6230
JasonR@ppicash.com