Suffering a Personal Loss, How to Financially Recover

recovering from financial loss; image of flowers and book

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Suffering a Personal Loss And How to Begin Healing From Financial Loss

There are times in life when we suffer loss. It’s sadly and realistically part of life. Whether it’s the death of someone close to you, a divorce, or another financial and emotional setback, there are so many ways a loss affects us. Recovering from financial loss is unfortunately something that often accompanies a personal loss.

Of those, paying bills, figuring out where the money is going to come from is at the top. We don’t want it to be, it’s not what we want to be thinking of when we’re hurting.  When you suffer an emotional loss, or a physical loss (such as destruction of your home, etc.), it will impact you financially as well.

This can easily create a spiral that sucks you down more and more.  You’ll feel more in control and less helpless working to get a grip on the financial aspects.

Finances might not be at the top of your mind when you’re suffering a loss. In some cases, they may be at the forefront of your mind (depending on the type of loss and your personal situation).

Whichever the case may be, there are steps you can take to help you bounce back, get feeling in control.

How you can begin to heal financially after a loss

How Do You Mentally Recover From Financial Losses? How do I start over financially? How do I start over after losing everything? Are you recovering from financial loss or helping a loved one through this? These are only a few of the overwhelming questions running through your mind right now and it’s all scary and a lot to take on yourself.

Look after your emotional health during your recovery

It can be difficult during times of loss but you need to calm your emotions and stay smart. If you allow your emotional health to go unattended, your financial health will suffer as well. Seek help with this, if needed. Find ways to ‘get away from your thoughts. Do NOT feed your grief with ‘things’.  Try therapy or talking with friends, taking walks, reading some free downloads, gardening, crafts.

Make a Powerful Vision Board to Make Over Your Life


If you’re struggling to recover financially after a loss, this is a good time to look at ways you can downsize. Do you still need three vehicles? Could you make it in a smaller house? What are some expenses you can cut out completely? Look around you and really dig deep and find ways you can downsize.  Don’t be afraid, we’re here to walk you through this and so are your friends and family.  Let people in to help you sort through this.

Find ways to increase your income to reduce your financial loss

Can you make more money? Are there opportunities for you to increase your income or to make some extra money on the side for a while until you get through this rough patch? Are there things you can sell to bring in some quick cash to help you through this time of loss?  Again, really, let people help you!  Yard Sale, Online Buy/Sell Yard Sale Groups (or make your own), eBay, Craig’s list, the possibilities are limitless today.

Trust someone for help

Sometimes you need to turn to an expert. A credit counselor or other financial leader might be a good choice to help you get through this loss and bounce back as quickly as possible. Don’t be afraid to trust someone else to help you in your time of need.  Ask people you know for references to someone they know and trust.

Take it one day at a time as you heal from your loss

There will be rough days. There will be moments where it seems difficult even impossible to get through it. Just take it one day at a time and keep working toward your goals one step at a time. Be patient while recovering from financial loss in your life.

Make a plan

There is something to be said for a good, solid plan. You need to create financial goals that you can realistically obtain, then you need to work on those goals with a solid plan that you can commit to.  Write them down, scratch them out and write them again. When you see progress, you will feel encouraged to keep moving forward.

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Start saving right away

This can seem like the hardest part when you don’t have a lot of money to work with but saving from the very beginning is going to help you bounce back more quickly.  Start a coin jar, a savings account, and when you’re ready start looking into retirement and investment accounts.

Mind your credit

Do you know your credit score? Is everything on your credit report accurate? Are you in need of credit repair? There’s no better time than now to get a handle on your credit. It can be one of the most important things you do to help you bounce back financially after a loss. Take time to keep your credit on track. It’s worth the effort.  Bounce back up a bit and see where a financial counselor could help you with this as well.

Target your credit card debt and loans

If you’re recovering from a financial loss, this is a good time to target your credit card debt and consolidate or pay it off whenever and as much as you can. Credit cards typically come with high-interest rates and many people struggle with the weight of credit card debt monthly. Take the time to target this debt and whittle it down so you can be more financially free. It will also help to improve your credit rating. These are just a few ideas to help you with the process of bouncing back after a loss. Do what you can to take care of yourself emotionally as well. Lean on friends and family for emotional support and keep yourself in a positive place as much as possible. Create a solid, reliable plan to work on your debt and finances, then stick with it. You will get there eventually.

Related: Budgeting Successfully; Get Started Making Your Budget

Quotes To Help Stay Positive As Your Recovering From Financial Loss

suffering a loss, divorce, death, home, financial healing

All you need is one safe anchor to keep you grounded when the rest of your life spins out of control.

Katie Kacvinsky

Loss is nothing else but change, and change is nature’s delight.

Marcus Aurelius

Let your dreams be bigger than your fears, your actions louder than your words, and your faith stronger than your feelings.


Taking care of yourself makes you stronger for everyone in your life … including you.

Kelly Rudolph

Always remember you are braver than you believe, stronger than you seem, smarter than you think and twice as beautiful as you’ve ever imagined.

Dr. Seuss

Act as if what you do makes a difference. It does.

William James

I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.

Jimmy Dean

It isn’t where you came from. It’s where you’re going that counts.

Ella Fitzgerald


These tips won’t mysteriously make recovering from financial loss better for you, I know. What they can and will do is give you some control over where your life is going. lt will help you keep a handle on the finance side of things while everything else gets worked out in time.

Fear of the unknown is the worst.  I know that. I know that whatever you are going through is real and not trivial by any means.   I also know that allowing our fears to sit will not give us any strength to move forward.  Find a friend or even a stranger to share your fears, your sadness with and begin your road ahead. One step, one day at a time.

Matt R

Hi, my name is Matt and I'm the founder of Barefoot Budgeting. This site is dedicated to one thing... helping you budget and save money.

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