The following is a guest post about rebuilding a financial foundation when starting from rock bottom.
The rippling effect of this country’s economic struggles has made it much more difficult for the average household to maintain a solid financial foundation without any signs of detrimental damage. Even upper-class wealthy consumers have had to go back to the drawing board to reevaluate and revise their financial plans and budgets accordingly. Regardless of how bad your foundation may appear right now, you need to keep in mind that it is not too late to turn things around. There are several key steps that need to be taken to get off to a great start.
Remain Honest At All Times
One of the hardest things to do within a family, for one reason or another, is to remain honest about financial weaknesses, according to a study conducted by the US News & World Report. If you are serious about rebuilding your financial foundation while also increasing your Credit Score and history, then this is going to be the first milestone that you need to achieve along the way. Admit that you have a problem and be honest with your family about just how bad things are currently.
Examine the Damage Thoroughly
When insurance claims adjusters examine the damage resulting from an automobile accident, for example, they don’t just take a quick glance at a picture of the car and then finalize their estimate. The adjusters have to study the damage from an up close and personal perspective in order to have an accurate perspective of how to proceed from there. When rebuilding your financial foundation, you should be taking the same approach. While it is highly recommended that you check your free credit score, your examination needs to go much deeper than finding a three-digit number. Study your credit report thoroughly, searching vigorously for errors and discrepancies that may need to be corrected. Doing this thorough examination will also provide you with a realistic perspective of just how badly damaged your foundation is right now, which will help you to understand the next step that should be taken.
Do Not Hesitate to Ask for Assistance
Pride will make it rather easy for you to avoid asking for help, or even being willing to admit when assistance is necessary. The old saying that pride comes before a crash is absolutely true, and can easily be applied within the financial world. In order to successfully rebuild your financial foundation, dilute your pride heavily by mixing in heavy doses of humility. There are many cases of financial weaknesses that can be addressed and resolved with very little assistance, especially if you have a general idea of what needs to be done to fix it.
Patience, Patience and More Patience
Your Credit Score is not going to drastically improve overnight, and nor is your overall financial foundation. It does not take very long to destroy a solid and strong financial structure, but it will take a substantial amount of time to rebuild it. This is why you are going to need to exercise patience throughout this entire reconstruction process, regardless of how long it may take to complete. Instead of worrying so much about how long you have to wait, focus more on how much easier your family’s life will become once you have finally reached your desired goal.