What Do You Do If Your Financial Plans Fail?

by Miranda Marquit · 0 comments

Too often, we run into failure. We make grand plans, and they come to nothing. This can be especially true with finances. We might make a debt pay down plan, only to have a job loss interrupt the efforts. What happens if you plan to get a new job, but aren’t hired?

It’s important to make financial plans, and to try to stick with them. However, it’s also important to be ready in the event that your financial plans fail.

Preparing for Financial Setbacks

Right now, I’m in the process of trying to refinance my home. I have plans for the $300 a month I’m supposed to save, as well as other hopes for the refinance. But it’s taking forever. And what happens if the refinance doesn’t go through? I’ve already canceled my mortgage auto pay with expectation that the refinance will close in the next 10 days. But if something goes wrong, I’m going to have to reinstate auto pay, and make sure that my mortgage payments aren’t interrupted.

Other financial setbacks are a little more difficult to deal with than the possibility of a refinance falling through. A job loss is one of the biggest setbacks that many experience. When you lose your job, a number of plans, from saving for retirement to paying off debt to putting a child through college can fall through.

In order to prepare for these types of setbacks, here are a few things to consider:

  • Diversify your income: Relying on one source of income can lead to all sorts of problems later. Income diversity, though, can help you offset some of the effects of failed financial plans. You can keep making the most important payments, and you might have a little more time to create an alternative plan.
  • Emergency fund: Your emergency fund can help you supply a Plan B for a certain period of time. However, eventually your emergency fund will run dry. You need to make alternate plans to begin earning money again so that you can get back on track.
  • Brush up on skills and networking: You might be surprised at what’s available for you in terms of new opportunities — as long as you are up to date with your skills and you have a good network. From turning to trusted family and friends when you run into a financial setback, to tapping your career network to find a job, know what resources you have at your command.

Make a New Plan

If your first set of financial plans fail, make a new plan. If your attempt at a side business has flamed out, consider what went wrong, and whether or not there is a different side business that would work better for you. When your debt pay down plan gets off track, re-evaluate where you stand, and make a new plan.

Start again. It’s not easy to pick yourself back up, but you need to if you want to move forward. While you might not be able to control what has already happened, you can choose how to respond going forward. Make a new plan from your current position, and work toward a better financial future.

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