Having big plans fall through can feel like a major blow when you were expecting to be in a more financially stable position. But according to experts, there’s no need to despair.
“From a financial perspective, coping involves addressing the immediate financial gaps left by the failure of the plan,” said Dennis Shirshikov, head of growth at GoSummer and professor of Finance at City University of New York. “Let’s say, for instance, you canceled a wedding and now have extra savings from that event — you can reallocate those funds toward future savings or paying down debts.”
See More: 6 Things the Middle Class Should Sell To Build Their Savings
Read Next: 9 Things You Must Do To Grow Your Wealth in 2024
However, he said the emotional toll of losing a planned event or financial windfall is often just as heavy as the monetary loss. “This is where the mindset shift is critical: see this moment as an opportunity to recalibrate, rather than a loss.”
Below are some ways experts say you can regain your footing amid disappointment.
Revisit Your Budget
“The first step in regaining financial stability after a major plan collapses is reassessing your financial situation from the ground up,” Shirshikov said. “Start by revisiting your budget — what was once manageable may no longer align with your new reality. I recommend cutting discretionary expenses and reallocating funds to essential categories.”
He said an example would be canceling or downgrading subscriptions and reallocating that money toward an emergency fund or paying down debt. “This is a critical moment to be ruthless with your spending decisions.”
Be Aware: I’m a Financial Advisor: 5 Things the Middle Class Wastes Money On
Look Into Alternative Income Streams
If your primary plan was disrupted, Shirshikov said it’s important to diversify your sources of income.
“For instance, side gigs in freelancing, renting out a room or space or even taking on consulting work can provide an immediate boost in cash flow.”
Erwin Vico, finance expert and CEO of Slick Cash Loan said exploring alternative income streams is crucial for regaining financial stability after a setback. “Consider freelancing or consulting to leverage your existing skills or create online courses and e-books to share your expertise,” he explained. “Exploring freelancing and creating online courses can be highly effective strategies for regaining financial stability.”
Vico said freelancing allows you to leverage your existing skills and expertise, providing services to clients on platforms like Upwork or Fiverr. “This flexibility not only helps you earn income quickly but also allows you to choose projects that align with your interests.”
On the other hand, Vico recommended creating online courses as a way to generate passive income. “By sharing your knowledge on platforms like Udemy or Teachable, you can reach a broader audience and earn money over time as students enroll.”
He said that both options enable you to diversify your income streams while capitalizing on your strengths, helping you regain financial footing in a sustainable manner.
Build Resilience as a Long-Term Approach
“One long-term approach that is often overlooked is focusing on building resilience, both financially and personally,” Shirshikov said.
This means creating a financial buffer — such as increasing your emergency fund — that can protect against future disruptions.
“It also means cultivating a mindset of flexibility and adaptability,” he added. “When big plans fall through, whether it’s a failed investment or an unexpected life event, those who are able to pivot and explore new financial opportunities, like investing in real estate or starting small entrepreneurial ventures, tend to recover more quickly and sustainably.”
More From GOBankingRates
- 5 Low-Risk Accounts Financially Savvy People Trust for Reliable Returns (And How You Can Use Them)
- I'm a Retired Boomer: Here Are 10 Things I Always Buy From Dollar Tree To Save Money
- 5 Subtly Genius Moves All Wealthy People Make With Their Money
- This Free Money Move Could Nearly Double Your Lifetime Investment Returns
This article originally appeared on GOBankingRates.com: 3 Ways To Regain Financial Stability When Big Plans Fall Through
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
