Begin Again.

What would you do if you lost all your possessions?

When all is lost, and you have nothing left, you are at a very hard place in life. But you are also completely free. No house, no need to clean. No clothes, laundry is easy. No car, no need for car maintenance. With nothing, you have freed your most limited resource: your time.

The very first thing I would do if I lost it all is sit outside the rubble of my burned to the ground house, and thoughtfully make a written plan. It’s time to zip over to the neighbors house and snag a pen and some paper. I’m going to carefully go over the logistics of my next paycheck, getting in contact with insurance agents, and finding temporary residence and transportation with family (emphasis on temporary, do NOT be that guy).

Secondly, it’s time to go to work. With all the free time from not having a home and possessions to maintain, all there is now is work, and that means getting hard after it to build up some funds. This means extra shifts, second jobs, side hustles, etc. It’s important in this situation to adopt a strict, Spartan lifestyle, with funds being reserved for NEEDS, not wants.

Thirdly, I’d talk to both a counselor and financial advisor, to get the most out of my situation. It’s very important any time you experience a catastrophic life event like losing it all to talk to professionals you who can help you make the most of a bad situation.

Ultimately, losing everything is a hard hit. But you can recover, and you will recover. Staying true to your basic financial wisdom, working hard, and not trying to work your way through loopholes will get you back on your feet in no time, and ultimately may make you better off in the long run.