How to recover after a financial mess

1. First step: Accept it and adjust

Some people get into serious financial situations but continue to live in denial about it, and try to live their lives as if it is business as usual. Often, after a job loss, many people will refer to themselves as say, “a former head of department” – meaning they are drawing their current identity from their past situation, which is no longer accurate. Denial only makes the situation much worse. If you have lost your income and you live in an expensive house, move. Change the schools and cut out the entertainment costs. Immediately. Don’t wait until your resources are exhausted. It takes about three to six months to get a new job, but after that, it becomes more difficult.