By Matata Mercy
One time I was a millionaire literally, at least in the financial figures.
I had a million shillings in my account and I can tell you that it felt good. As good as eating ice cream.
Truth betold, it feels good to have money in your pocket and there is away this financial muscle gives you confidence and courage that you can actually get your hands onto anything.
During this period of my life, I felt like I was on top of the world .
I believed that I could do whatever I desired but it was actually short lived.
Soon my empire crambled, I was spending money like there was no tomorrow, anyone who wanted money,I gave.
I gave money to women who claimed to be in love with me but in reality were not.
As I later discovered when my pockets were empty, they were just using me to fill their own bank accounts and pockets.
All in all, I ended up broke like a church mouse.
Today, I would like to share with you some of the lessons that I learnt from the financial setback that I got myself into.
1.Take charge of your financial well being.
We cannot blame others for our financial problems.
We are responsible for our financial well being.
It is true that other external factors might have an effect on our finances but ultimately we are responsible for our financial decisions.
Accepting that we are responsible for our finances helps us to learn from our mistakes and take control of our future financial well being.
2.Knowledge is power.
Financial literacy is very important.It is a good idea to use this financial setback as a springboard to educate ourselves.
Now we should learn about investing, budgeting and also strategies that can be used to save money.
There are countless resources that are available online and also financial institutions that can give you that knowledge.
The more you know, the better equiped you are to make informed financial decisions in the future.
3.Try to re-evaluate your risk tolerance.
The experience of losing a lot of money might be in position to reveal to us about our risk tolerance.
This could actually mean that our risk tolerance was higher than we actually anticipated.
It is therefore clear that we should reasses our investment strategies and adjust them to better align with our comfort levels.
Remember that slow and steady growth is often better than chasing risky, high yield opportunities.
4.Build an emergency fund.
An emergency fund acts as a safety net, it can hold you when you come across unexpected financial crisis that could sweep you away.
You should always aim to save at least 3 to 6 month's worth of living expenses.
Having this buffer can prevent a small setback from becoming a major storm.
5.Reasses your budget and spending habits.
Losing money will require you to have a closer look at your finances and track your expenses so that you are able to identify some of the areas where you can actually be able to cut back.
Create a realistic budget that prioritizes needs over wants. And ensure that you stick to it.
6.What you lost doesnot matter, but how you bounce back matters.
In life, setbacks will always happen including financial setbacks.
What matters most is how resilient you are. Develop a plan to rebuild your savings and then work towards your financial goals.
There will be challenges but with dedication, hard work and focus, it is possible to overcome those challenges and come out stronger.
7.Learn to diversify your income.
Surviving on only one income stream is a disaster waiting to strike you down.
It is risky. The only way out is to figure out other ways in which you can earn more income. In short, create multiple streams of income.
Having multiple streams of income provides a financial safety net and also opens new doors to opportunities.
All you have to remember is that financial setbacks do not define you.
They are just lessons that can help you to learn how to be a better investor.
By taking ownership and also learning from your mistakes, and implementing positive changes, you can bounce back stronger and be able to achieve your financial goals.
Good luck.🍀🍀💪💪💰💰
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