How To Bounce Back From a Financial Setback (Without Beating Yourself Up for It)

Gabrielle Olya   Mon, May 2, 2022,

t’s easy to be self-critical of our mistakes, and when we make a financial mistake, it can bruise our wallet in addition to our self-esteem. But no matter what financial setback you are facing, with the proper plan, it’s possible to bounce back. In this “Financially Savvy Female” column, we’re chatting with Eleni Patel, a CPA with Equitable Advisors, about the common financial mistakes women make and how they can recover from them.

Common Mistake No. 1: Not Actively Participating in Long-Term Financial Planning

Patel said that her female clients often make two common mistakes, the first of which is taking a backseat when it comes to planning financially for the long term.

“For women who are in relationships, they may delegate the long-term financial planning and investing to their partners,” she said. “We often find that women are highly involved in managing the household and day-to-day expenses — paying bills, buying groceries and other household items — but are not nearly involved to the same extent in long-term financial planning, such as future income production, cash flow management and investing.”

Single women also tend to focus on the short term.

“Women who are single often focus on short-term needs — one to three years ahead — but don’t have a long-term plan for the next 10, 20, 30+ years,” Patel said. “In our view, long-term financial planning is especially important for women, as we tend to live longer than men.”

How To Bounce Back From This Mistake

“It is never too late to take control and play an active role in mapping out your financial future,” Patel said. “Every day is a new day in financial planning! No matter where you are in life or what your financial situation looks like, start prioritizing your financial well-being today.”

Even if you are in a bad financial place right now, being proactive is the only way to change your situation.

 “There are many women (and men) of all ages, who have recovered from major financial setbacks, such as bankruptcy and foreclosure, who go on to achieve great financial wealth,” Patel said. “Wherever you are, start today by setting goals and formulating a plan to reach them. If you have a partner, engage in regular conversations about your finances to make sure you both have input in setting goals, evaluating opportunities and managing risk.”

Common Mistake No. 2: Not Investing

To continue reading, please go to the original article here:

https://www.yahoo.com/finance/news/bounce-back-financial-setback-without-200019364.html