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Handling Financial Setbacks During a Pandemic The Right Way

Life always gives different challenges, some of them difficult, some of them surprising. For some, a worldwide pandemic like COVID19 coming our way was unexpected and threw many of us into confusion. Along with it came repercussions that many of us are still trying to understand: economic meltdowns, financial crises, the world economy at a standstill, and employment levels at an all-time low.

But some are finding this unsettling pandemic as an opportunity to explore and expand their skills when it comes to finance and business. Many are now exploring how they could recover from any setback they went through this year.

Don’t panic!

It might seem like a cliche, but it is the most basic thing anyone should do. The truth is that a financial setback is something that commonly happens, even before the pandemic. A survey carried out showed that 75% of people in the U.S had experienced major financial setbacks.

The best approach is to stay calm and revisit your actions. Consider which steps would have been better for you, and then learn from it. Rethink what you could do with what remained with you, and create a strategy that will save most of your assets. Check which banks and organizations could help you fend off bankruptcy, and review your assets and cash flow.

Realign with your people and employees. Talk to them calmly, and be honest about the state of your business. It’s better to tell them the real situation, so they could also prepare for their next step.

Don’t make knee-jerk decisions.

Some people might be tempted to make quick decisions to respond to a crisis. But sometimes a knee-jerk reaction is not the best step to take when something unexpected affects your business. Review and check your situation and check with your clients and partners. They might be doing well, or they might suffer more losses than you previously thought.

Make forecasts based on your current numbers, and then you can assess the best step to take. You could also check with your lawyers and your stakeholders on the best options for your company.

A rushed decision is often not the best, and deep thought and consideration are what’s needed for anyone experiencing a setback. If you need some time to think, go into a short retreat or vacation and consider your options.

Indulge in your hobbies and personal interests.

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Go back to doing an old hobby or pastime that gave you great joy. The emotional and psychological benefits of doing a hobby that you enjoy are enormous. It improves your brain chemistry and prepares you to do other things that you might find difficult.

You could also turn this hobby into a possible business venture. So many people have used their hobbies as a starting point for a possible business. Some have even explored their sporting activities as their main business; they provide the materials, equipment and tools for people who do the same thing as they do. This has been the business style of the Tiny Home Movement.

Some companies have focused on providing the materials and equipment that many businesses need. Bt some focus on novelty and uniqueness, such as providing poker chips-style golf ball markers. Some businesses thrive on what is common, but you could also base your business on the unusual and extraordinary.

Be creative; think outside the box.

Be creative and explore other potential things you could do. Some people in these times are exploring work that they might not have previously considered. But many are now exploring home-cooked meals, delivery services, and even teaching at home as possible career alternatives. For many people who lost job opportunities in the travel and tourism industry, they are exploring other things that could provide them with extra income. Some are exploring digital learning and e-commerce opportunities.

It might not be the kind of work they had envisioned when things were better, but often adversity opens new doors. They can then use their other talents to explore and build new ventures, whether it’s for their personal life or career.

Financial and personal setbacks are common, but that does not mean you cannot get back up when that happens. You can recover, and times will only get better. Many have better comebacks when they do these things, so it’s best not to panic, take a step back, reflect, and be honest with yourself and the people around you. Then you could explore your circumstances better and build a new chapter in your life that will only make you grow stronger.

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