339. When Life Happens: 3 Steps to Regain Financial Control

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In this episode of the Debt-Free Debt Podcast, host Amber shares valuable advice on how to handle unexpected financial setbacks such as surprise car repairs, medical bills, or reduced work hours. She outlines three practical steps: pausing to get a clear picture, making a short-term stabilization plan, and building momentum to move forward. Amber also emphasizes the importance of maintaining a positive mindset and focusing on small wins. Tune in to learn how to manage financial stress and keep progressing toward your financial goals. 

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Episode Transcript

Amber (00:00):
Maybe it's a surprise car repair, a medical bill you
didn't see coming, you lost somehours at work, or just had a
bunch of life happen all at once.
Whatever it is, setbacks havethis way of making us feel like
we've completely blown it, likeall the progress we've made is
just gone out the window.

(00:21):
And listen, I get it.
I've been there recently.
Actually, the good news is,setbacks don't mean you're
starting over.
You just need a clear, calmgame plan to keep moving forward
.
Hi, I'm Amber, today's host forthe Debt-Free Dad Podcast,
where we help everyday peoplelike you take control of your

(00:43):
finances so you can live ahappier, less stressful life.
My husband and I saved and paidoff $54,000 in just 20 months
and have been living debt-freeoutside of our mortgage since
2018.
Now, after listening to thisepisode, if you're ready to take
things to the next level, readyto break free from living
paycheck to paycheck, reducefinancial stress, build your

(01:04):
savings and finally pay off debtfor good, but you're not sure
where to start, we've created anincredible free resource that
I'll be sharing with you laterToday.
I'm walking you through threesimple steps that can help when
life punches you in the wallet.
So step number one it.
So, step number one pause andget the full picture.

(01:26):
When something unexpectedhappens, our first instinct is
usually panic.
We either freak out or bury ourheads in the sand.
And I'll be honest when you'redealing with emotions on top of
money stress gosh that's evenharder.
A couple of months ago we lostour sweet dog Bonnie, and just a

(01:49):
month later we had to saygoodbye to our other dog, clyde.
It was absolutely heartbreakingand on top of the emotional
side, between the vet bills,medications, euthanasia costs,
it added up to around $4,000 injust three short months we had

(02:15):
to pull from our emergency fundto cover the costs.
Now I want to be really clearabout something.
We didn't always have a largeemergency fund just sitting
there.
We started exactly where a lotof you are starting right now.
We built a small emergency fundfirst, we paid off our debt and
then we spent time growing thatlarger emergency fund over the
years.
So, just so you know, it didn'thappen overnight.

(02:37):
It took consistency, disciplineand a lot of saying no to other
things so we could say yes topeace of mind.
So if you're just starting,don't get discouraged hearing
big numbers like that.
Everyone starts with thesavings of $100, $500 to their
first $1,000 and it grows fromthere.

(02:57):
But even with that foundation,facing a big emotional and
financial hit like this wasn'teasy.
It still hurt to see all thatmoney leave our account, but
because we had built the safetynet over time, it meant that the
setback didn't completelyderail everything and we could

(03:17):
focus on grieving and healingafter having to say goodbye to
our furry friends, our belovedfamily members.
So it all starts with stepnumber one Pause, breathe, Get a
clear, full picture.
Ask yourself how much exactlydid this cost?

(03:41):
What bills or other prioritiesare affected now, is this a
one-time hit or something that'songoing?
Writing it all down might notchange the facts, but it changes
how you feel about the facts.
It moves you from panic to aplace where you can actually

(04:04):
make a plan and focus.
Step number two make ashort-term plan.
Once you know where you're at,take the next step and make a
short-term plan.
Notice I say short-term.
You don't need a long, 12-monthsolution today.
You just need a survival planfor the next 30 to 60 days.

(04:25):
So here are a few things thatyou might want to do Cut back on
temporary, non-essentialspending.
This might mean pausing takeout,holding off on Amazon purchases
, canceling some subscriptionsfor now.
If you've got sinking fundssaved up for emergencies, now's
the time to use them on theemergency All right, not on the

(04:48):
stuff like the takeout and stufflike that.
That's what the emergency fundis there for for those
emergencies.
Maybe you pick up extra shifts.
If it's something that'spossible, sell a few things
around your house, small stuffthat can give you a little
breathing room fast.
And while you're making thisplan, don't forget about your

(05:11):
priorities Food, housing,transportation and utilities.
Cover these first.
Everything else can be put onhold for a little while.
The goal isn't to fix everythingperfectly, it's just to
stabilize.
Give yourself permission tofocus only on what absolutely

(05:32):
matters for the next month ortwo.
Now number three focus onbuilding momentum again.
After you stabilize, it's timeto shift your focus to build
momentum again.
Here's where a lot of peopleget tripped up, because setbacks
feel like failure.
It feels like you losteverything you worked for.

(05:54):
But you didn't lose everything.
You still have your habits.
You still have your knowledge.
You're moving forward with moreexperience.
You're not starting from zero.
So here's what you got to do.
Start small.
After covering our dog'sexpenses, we knew we needed to
fill our emergency fund again,even if it meant starting with

(06:18):
$20 here and $50 there, and it'sgoing to take time to rebuild
it back up.
After all, we took a $4,000 hithit.
Set one tiny win for yourselfthis week.
Maybe you meal plan, maybe yousave your spare change.

(06:39):
Whatever it is, it's a stepforward.
And keep track of those wins.
They add up a lot faster thanyou think and when you're
keeping track of them, you cango back and see that you still
are making progress, becausesometimes we get lost in the
hustle and bustle of life and wethink we aren't making progress
.
And then, of course, you'regoing to want to give yourself

(07:00):
some grace.
One setback doesn't erase allthe progress.
It's just a detour, not the endof the journey, all right.
So let's quickly recap.
Not the end of the journey, allright.
So let's quickly recap.
Step one you want to pause.
Get a clear picture of whereyou're at.

(07:23):
Step two make a short-term planto stabilize yourself.
Step three start buildingmomentum again, with small steps
moving forward.
If you're dealing with a setbackright now, I'm really sorry.
You're in that.
I know it's hard, but rememberit's temporary.
You're not broken.
You haven't failed.
You're just facing real lifeand you can do something about

(07:44):
it Now.
As I mentioned at the beginningof the episode, if you're ready
to stop living paycheck topaycheck, lower your money
stress, build savings andfinally crush your debt, you're
in the right place.
Every Sunday, we send out ourweekly newsletter Simplify my
Money a quick, easy to followguide to help you take control

(08:04):
of your money with simplestrategies, make money decisions
without stress and build theconfidence to hit your financial
goals.
Want in?
Just click the link at the topof the show notes and you can
get started today.
Thanks for hanging out with me.
We'll see you on the nextepisode.