Financial Disaster - One Cent At A Time

How to Recover From Monetary Loss

September 7, 2015 Leave a Comment

No one goes looking for a financial disaster or loss of money. A money loss may take form of a job loss, a burglary, theft, death of a family member, divorce, emergency medical bill, etc. In truth, people who are on the verge of a financial crisis may not know exactly what the right thing to do is; of course, it always boils down to one thing and that is to hope it will pass.

How to recover from Monetary loss

Some individuals may go into so-called denial mode; that is, thinking they can go on spending just the way they used to since a new job or a potential source of income is just around the corner to help them get out from this mess. However, this can be the worst decision you can ever have.

How to Know When It’s Time to Get Financial Help

March 8, 2015 Leave a Comment

I was going through a recent story about how cancer patients experience the financial worry. As per the report “Four of every five such American patients and their spouses-caregivers in the study said they had concerns about meeting medical costs and suffered “financial stress.” Worries about paying medical costs also were tied to lower mental and physical health, the study found.”

Need Financial Help

Not only among patients, the financial worry is one of the most common factors behind poor mental health and it’s the biggest reason for crime. In this era of gadgets and increased social interaction (although mostly virtual) people need money in the bank. More than what our parents or their parents needed, we need money. Naturally, financial worry becoming more and more widespread.

What to Do When a Natural Disaster Destroys Your Business

December 13, 2014 Leave a Comment

Tornadoes, floods, earthquakes, mudslides, and avalanches — the list of ways that Mother Nature could unexpectedly unleash her fury seems almost endless. The type of natural disaster that you could face depends on where you live. Many weather-related disasters, particularly as climate change has accelerated, have become more common and more costly than ever before.

Natural Disaster

Having insurance can give you some financial relief if a natural disaster destroys your property. However, your choices in the hours, days, weeks, and months following a disaster will determine whether your business recovers. You need to run it as best you can, look for financial assistance, and decide whether keeping your business open is worth the cost and the effort.

3 Financial Decisions you Should Avoid

March 14, 2014 5 Comments

A lot of us have made some pretty horrific decisions in the past. Making mistakes is generally thought to be a part of the learning curve; when people make bad decisions, they get a first-hand experience of where they could have acted a bit more prudently. For example, we often find ourselves subscribing for a gym membership when the treadmill at home has been gathering dust for a long time.

That impulsive purchase of the new smartphone with your credit card when you are already struggling to pay the minimum is another example of a bad financial decision. In fact, a relatively new branch of study known as Behavioral Economics is looking at how humans, who in classical economics are termed as rational, end up making such irrational decisions! Well, the good thing about any bad decision is that you can learn from it and vow to not repeat it in future.

Despite burning their hands by making poor financial decisions, some people still end up making one bad decision after another as if their brain has somehow been hardwired to function this way only.

Finding the Positive Side in Bad Financial Situations

March 11, 2014 2 Comments

People with corporate jobs are more theoretical. We try to energize workforce with theories of productivity, we try to form tomorrow’s leaders with theories of leadership. One of the top leadership theories is “failures are stepping-stones to success”. It does apply to everything we do in our daily life., finances included. The only thing good about failures is the lessons we learn from them. Make your financial set backs a great learning and don’t repeat the same mistake again. Enjoy this guest post from Natalie.

I like to think of myself as a pretty positive person. I like to count my blessings. I like to say my good affirmations at least once a day. I really try to associate myself with other upbeat people that have good attitude. All these things have been known to contribute to better moods and improved self-worth but sometimes life really knocks us down. These are the situations that challenge us the most. When it comes to finances, it hits you hard!

After the Divorce: Getting Back on Your Financial Feet

February 18, 2014 2 Comments

The emotional pain of divorce can be heartbreaking- the separation of a life together and the struggles of building an independent life can be almost overwhelmingly difficult. Divorce is also one of the factors in people’s financial disaster.

Divorce can be particularly difficult for single income families, where one of the spouses gave up their career and income, and now find themselves struggling to get by, often with added financial obligations, such as the cost of raising children, maintaining a home, and sometimes alimony. How exactly can you pick yourself up and get back on your financial feet after a divorce?

Having a Financial Backup Plan

March 9, 2013 3 Comments

When we start with a project, we make plans, document them and weigh in different plans. Then we select a plan to work with. Then, there, we also have a backup plan for the original one, called as a fall-back option. The backup plan is not documented as detailed as the main plan, though. Still we start with a plan B, partially documented. Your personal finance is just another project, there’s little difference between your work project and a personal finance management.

Applying the same project management method to our personal finances, should we not have a financial backup plan? What if there’s a new family member, what if we lose someone? What if a disaster strikes? Or even what is our plan if another economic meltdown occurs today? To meet with any unavoidable circumstances that may affect our financial life and health, we should be ready with a backup plan, the plan B.

Why have a backup plan for your finances

Let’s say you have a goal for mortgage pay off in 10 years, and suddenly due to illness to one of your family members, you need a large chunk of cash even after insurance coverage. In all probability, the money you will either take away from emergency cash or you will break into another investment and do a premature withdrawal (may even be from your retirement saving). Worst case, you will borrow money with interest.

Bad Financial Habits That You Might Be Not Aware Of

March 23, 2012 12 Comments

For some people, bankruptcy is for certain. If you are one of them, those overly secure of the thought that they have a regular source of handsome income, so they just keep on spending without keeping track of their expenses.

You’re sure to keep falling off the financial ladder… if you continue spending more than you earn, mindlessly making purchases more than you can actually afford. You absolutely don’t have a shot at getting rich… if you keep making saving a chore for tomorrow, always thinking that you’d always have money to expect anyway.

There are a number of bad financial habits and ways of thinking that have driven lots of people into the depths of financial ruin. Some of them seem too harmless that you wouldn’t even realize how much it could lead to your economic demise. This article is written to give you a heads up on these habits and pull you up before you reach that depressing pit called “bankruptcy”.

5 Steps To Fix Financial Failures

November 28, 2011 14 Comments

While surfing blog comments at other personal finance blogs, I came across a story of a reader. Which reads like below.

A couple of years ago, I was doing well when it comes to finances. I knew I was doing better than a lot of my friends and family. I was having a good job. Everything was actually really, really great.

Then recession came—and my world, as well as the others’, came tumbling down. The start-up company wasn’t able to pick itself up and it had to close down, leaving me with no job at all. My wife was also laid off from her job. No matter how much we searched for work, no one would like to take us! For seven months, we weren’t able to do anything, and before we knew it, our savings dwindled. We could hardly pay our utilities, much more our credit card bills.

Get Into Debt Now, Before Time Runs Out

November 2, 2011 29 Comments

You have been reading articles on avoiding debt or getting out of debt all along. Let’s try a different route this time. I will tell you some surefire ways to incur debt. No matter what state your finances are in, you won’t fail. I guarantee it.

IncurDebt

Whether you read it in reverse psychology or not is up to you. But history has proven that every human being who followed this strategy went in to a deep black hole of debt and rarely came out of it. So if you want to enjoy your stay in debt, now is the time to act. Follow these steps from today!

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Why have a backup plan for your finances

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