Starting over can be overwhelming, there is already so much emotion surrounding why you are having to start over, whether it is as a result of the death of a family member, divorce, lost of job, bankruptcy or a mental breakdown, that the financial aspect seems daunting.

If you are having to start over for whatever reason, here are a few tips to help you through that process.

Gather all your information

Understanding your financial position should be your starting point. Are you in debt, what are your monthly obligations, what is your net worth. Some of this information may have been neglected for some time or you may not have been the person managing the details, so it may not be as easy as it should be.

Pieces of information to look for:

• Bank statements – savings/investments/credit cards
• Bills – utilities/insurance
• Insurance policies/title deeds/vehicle details/loan agreements

The point is to establish your current financial position, if you have no idea where to begin or it is a situation where debt has been incurred in your name, you can reach out to a credit bureau that will help you establish your current debt position.

Communicate with stakeholders

If you are unable to meet your obligations or you need to change the current terms, setting up time to discuss with the stakeholders should be high on your list of priorities. You can request a change to monthly obligations if you are unable to meet the current monthly payment or find out what options are available to you.

This phase can be beneficial in establishing a relationship with account managers etc, something you may not have done before. 

Seek professional advice

A change in life situation can result in cash windfalls, while that takes away the pressure and the burden, you may need to make some financial decisions of which you don’t have the experience to. Seeking the help of financial professionals and the legal fraternity can ensure that you are making the best decisions for your long term future. 

Increase your financial literacy

You will never have too much financial knowledge, regardless of what level of financial literacy you have, you can always go to the next level.

If you have never been in charge of your financial life before, start with the basic of understanding banking and managing cash, setting up a system to pay for your monthly bills, ways to increase your revenue and the best ways to save money, how to budget and live frugally.

At the more intermediate and advance level, learn to live a debt free life, learn how to make your money last to retirement and the best investment options for your lifestyle and creating generational wealth.

Set new goals for yourself

As you embark on your journey, you should set new goals for yourself, regardless of your age. Once you have established what these new goals are, you will need to factor in the financial aspect to meet them. Below may be a few of your new goals.

• Early retirement
• New hobbies
• Downsizing
• New home
• New source of revenue

Keep going

There is no shame in starting over, every new day gives an opportunity to begin again, to chart a new path or simply live better.

Starting over or the feeling of starting over is never easy, but it provides an opportunity for you to be go in the direction you want to, using the experience you have to live the life you desire, and your financial life forms part of that journey.