How to bounce back after taking a financial hit.
If you find yourself barely able to make ends meet, or are struggling with mounting debt, you may be wondering if it’s possible to turn your financial situation around. It may take some time, depending on the seriousness of your situation, but don’t be discouraged. The pandemic has certainly contributed to the financial stress of millions of people, but it’s still possible for you to make significant improvements by consistently taking a few small steps.
The first step is to assess your current finances. Before you can determine your specific goals for the future, you’ll first need to take an honest look at where you are in the present. This will show you what changes, if any, that need to be made so you can create a plan that will move you to where you want to be.
A good place to start is determining your net worth. Begin by writing down all of your assets, including stocks, bank accounts, real estate, retirement accounts, and mutual funds. Keep in mind that your vehicle and house don’t count unless you plan to sell them. Next, list all of your liabilities, including credit card debts, and loans.
Subtract your liabilities from your assets and you’ll have a pretty good idea of your current net worth. Hopefully it’s positive, but if not don’t despair. This information is what you need so you can formulate an effective plan to change things.
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