What do you do if are stuck in personal financial crisis?

I lost everything but the family during the financial crisis in 2008. The crisis has reshaped my life.

Economic issues shake the core of your existence. You must take it very seriously; otherwise, you won’t be able to get over the trouble.

I could not recover my loss. I tackled the problem the best way I could. I still have a happy I dealt with the crisis by hard work and saved my family.

Moneyless life is a curse-I have learned that in a hard way. I lost all my liquid asset during the financial crisis. I could not regain the money I lost, but the crisis has reshaped my life.

You have probably read about many suggestions about how to recover financial loss. But in reality, it is not just possible in many situations. I lost my financial assets. I had a negative portfolio value. Banks would not help with fresh cash. How could I possibly recover my loss!
 
The financial crisis caused a crisis in my personal life. I had to think about an alternative way to tackle the situation. I did not doubt that my family was more important than money. I lost money, but I still got my family. I used all my energy to save my family life.

I made the wrong financial decisions but made the right decision for my personal life. Thank God, I still have a happy family. I took some hard choices instead of philosophizing and becoming depressed.

What do you do when you are stuck in financial problems? Some would try to give consolation that “lack of money is a gift.” They imply that you don’t have to be worried about money if you don’t have money. These kinds of empty tips would not help you too much. Your economic problem is here, and you have to deal with it practically. Philosophy and poems would not help you much.

Your method of dealing with financial troubles depends on the severity of problems. It also depends on the reasons why you are caught in the problem in the first place.

You may not solve your financial problems entirely, but you can ease the problem if you deal with the issue wisely.

You must know how the lack of money affects not only you but also your family. If you can’t recover money, you can focus on other things that could somehow compensate for the lack of money.

Your marriage and relationship suffer a significant setback when you have financial troubles.

“It’s money — not sex — that can bust up your relationship” CNBC. This statement is based on a survey conducted by LearnVest, a financial planning services provider, that finds that 68 percent of Americans means that finances problems cause more tension than sex in their relationship.

“ Financial difficulties in childhood may be associated with immediate and long-term consequences for mental health.” A survey conducted by the University of Australia finds “ families under financial stress are more likely to suffer poorer health.”

“Research shows there’s a clear link between your financial health and your mental health and your debt may serve as a tangible representation of your psychological state.” according to the research of Urban Institute.

Think about those how financial troubles affect your life, your relationship, and your children. It can bring your marriage in jeopardy. I can negatively impact the health of your children.
It can damage your mental health permanently.

In this situation, singing a love song would not help. The search for the meaning of life instead of searching money as suggested by some people will only mislead you.

First, find out the causes of troubles and try to see if you stop the reason.

Let me give some examples that cause financial problems.

There is a popular TV program on a Danish national channel called “Lukus fælde” (The trap of luxury). This program shows the lives of people who are trapped in misery caused by financial problems.

Some cause financial troubles, you are not responsible for. You can lose your job. Some unpredictable, expensive emergencies can occur.

Some bad judgments like bad investments and bad planning can spoil your economy.

The Danish TV show the financial troubles that are mainly caused by adverseand addictive behaviors of the people.

One of the main reasons for the money problem is the luxury lifestyle. A survey conducted by a Danish registrar of bad debitor Experian shows that a significant number of bad debtors spent an uncontrolled amount of money for luxury living. To maintain their luxury lifestyles, they take high-interest credit which they can not afford to pay back.

The gambling, especially the online gaming is another cause of the private financial problem.

When you try to pay a credit by taking another more expensive credit, you enter in a dark circle. One default after another brings only misery.

The way I dealt with my financial problems:

I used to be a rich man until the financial crisis began in 2008. I had a lot of money invested in financial assets.

Like many others, I could not predict the severity of the crisis. I lost money, and then I invested borrowed money again to regain the money. I dropped them instead of gaining.

I lost thus lost all my cash. I had no way to stay in trading business without liquidity.

I had two houses with a mortgage loan as well as two luxury cars.

I had a wife and two kids in the family. My wife was like a house-wife, and I was the one who took care of financial matters.

I talked to my wife about my situation. She was shocked because she did not know that the situation was so bad.

I explained to her that our life would not be the same again, but we will try to live a reasonable living and raise our kids in a good way.

I decided to cut the expenses in every way possible. My money was dried up, but I did not become bankrupt.

If I would try to keep both houses, I could end up in bankruptcy. I sold one house with a significant loss. I sold both of our cars and bought a bicycle.

I had a university education, but I did not get a job immediately. I started a newspapers delivery job. I, also, got a part-time cleaning job. I earned money enough for mortgage and basic needs,

I started working hard for at least 60 hours a week to keep things running with my family.

I also was enrolled in a higher study in a Danis university. I completed my Master degree in International business.

Now, I have a job as a marketing consultant. I earn good enough to provide my family with a comfortable life. I can not afford a luxury life as I could ten years ago. But my wife and three children (we have got one more kid) are happy with the way things are going.

My recommendations:

If you are stuck in financial problems, try to understand the nature of the issues. If it is because of a job loss, maybe it is temporary.

But if it is a definitive problem like mine, you need to change your lifestyle.

Let me give an analogy. If you can afford a small house, you have to do good interior design, so that you use every square foot. You have to concentrate on maximum utilization of the space. The same way, you have to have maximum utilization of money that you have.

Your life has to be very organized and targeted.

And above all, stop philosophizing and work hard. Think about yourself and think more about your family