Managing Your Finances in the Wake of Tragedy

Managing Your Finances in the Wake of Tragedy First of all, thank you so much for the supportive comments, tweets and emails during last week. While things have calmed down quite a bit after the bombings, shootings, car jackings and neighborhood hunts of last week, there’s still a lot of healing that needs to be done in both the Boston and running communities. Your kind words, thoughts and prayers have been well-received–it’s truly the spirit of resilience and camaraderie that has pushed all of us through such a horrific time.

Out of respect for what was happening and in part because I was struggling with a writer’s block the size of Texas, I chose to forgo my typical publishing schedule last week. However, today marks the beginning of a new week and there’s no time like the present to get back to business.

In light of the things happening here in Boston, I wanted to focus today’s post on what to do with your finances when you’re faced with processing a tragedy. If there’s anything I learned during this time of pain in my city, it’s that challenge and tragedy can strike in an instant, without warning.

If you should find yourself dealing with your own tragedy–no matter if it is illness, accident, the death of a loved one or a terrorist attack or natural disaster in your own neighborhood–there are ways to keep moving forward in a financially sound way.

Keeping Your Financial House in Order When Your Emotions Take Precedent

When all hell is breaking loose in your personal life and/or around you, it can be really hard to maintain your financial resolve. Rather than shirking all semblance of financial responsibility and creating an epic mess for when you do move on beyond this storm, consider the following tips for keeping your emotions–and your bank balance–in check:

Turn Off the News

At some point last week, I literally pulled the plug on my TV. I also slammed my laptop closed and shut off my phone. Why such a dramatic fanfare? Basically, the more I watched played out before me in the media, the more my emotions threatened to take control of me (rather than me controlling them). With each new gruesome photo of carnage or depressing post of a friend on Facebook, I grew more and more attached to the drama that was unfolding all around me. By shutting off my connection to the media, even temporarily, I was able to gain some much-needed time to clear my mind and regain my focus.

Give Yourself a Break

If a tragedy strikes, know that it’s OK for your normal routine to go out the window. In fact, I’m willing to bet that it will be nearly impossible to continue on as you usually do when faced with such a challenge. Rather than fighting what’s happening and how you’re feeling about it, allow yourself to slow down and focus on what’s most important.

Put Your Budget Aside

Yes, you read that correctly. While I’m not advocating a green light to spend yourself into oblivion, it might be necessary to take a small hiatus from the number crunching and just enjoy the time you can spend with your loved ones. Connecting with those who you are near and dear with will do so much more for you than balancing your budget!

Automate It

During any crisis, there comes a time when you must focus on the logistics and details of everyday life. Take advantage of this time to automate any bills or savings transfers. Essentially, you should set it and forget it temporarily so you’re free to attend to your emotions, your loved ones and your well-being.

Reach Out

If you’re going through a difficult time, no matter what it is, now is not the time to isolate yourself. Reach out to your friends, your family and your neighbors. Find those that you connect best with and spend time with them. Talk about what’s going on, what’s bothering you and your future plans for fun. Grieve together rather than alone and your time for healing will be much less than if you push yourself to go it alone.

Confirm and Protect

In the case of a tragedy where insurance could be necessary, make sure to check your coverage and have an open dialogue with any agents who can help you streamline a claims process. Also, protect yourself by shredding any unnecessary documents that contain personal information and take care to properly store those you may still need. Unfortunately, during times of crisis, there is a larger chance of thieves prying on the victims of the tragedy. You can also protect yourself and your identity by fully vetting any opportunities that come your way.

What are some financial management tips you’d offer to those currently dealing with a tragedy?


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  1. I would definitely agree to turn off the news and just automate anything to do with finances. You don't need to be worried about money when you are going through a tragedy. Depending on what the tragedy is, insurance is also very relevant. So if you need to make a claim make sure you are on top of that.

    Glad youre back and my prayers still go to you and everyone affected.
    My recent post The Ultimate Resource List for Earning Money Online

  2. I agree also with turning off the news as it really can eat someone up inside. Many people fall into a deep depression just from reading the news. The problem with the news is that when a story breaks it goes on and one down to the last drop and can last for days or weeks. Taking time away from the real world and focusing on you or the family is probably a much better idea. Great post.
    My recent post How I Changed My Life- I Won The Debt, Divorce, Drugs and Drinking Jackpot!

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