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Regardless of the cause, taking action is the key to regaining financial health. These setbacks come in different shapes and sizes, but youspoke with financial experts who shared the key steps to get your finances back in order—and how to prevent future setbacks.The first step to recovering from a big financial setback is to create a detailed budget, examine your income in-depth, track your spending, and understand your financial position.
"Read books, attend workshops, or consult a financial advisor to improve your financial literacy and decision-making," Plummer recommends."Understanding personal finance principles can help you make better financial choices and avoid future pitfalls."Nobody likes to think about final wishes, but it's important—especially when recovering from a financial setback. Having your affairs in order and estate documents prepared and up-to-date is vital.
In the event of an economic downturn or unexpected issue, one source of income is too risky to rely on. But by having multiple revenue streams, you can create a safety net.