How to Bounce Back Financially if You’re Recovering From Addiction

It can be difficult during recovery to find your way back to financial stability. Oftentimes, you’ve depleted most of your resources and don’t know where to even begin. However, here are a few ways you can bounce back and reclaim your financial freedom.

Overcoming a history of job-hopping.

In order to really get back on your feet financially, you need a reliable, good-paying job. If your resume is somewhat lacking, here are a few things to consider when applying.

  1. Be aware of your age. If you’re under 30, job hopping isn’t as much of an issue as most young people tend to move around a bit before settling down.
  2. Use years instead of specific dates. This will minimize the appearance of hopping around.
  3. Include an explanation in your cover letter. This should be done after you have highlighted your strengths.
  4. Be selective about what jobs to include. Obviously you’ll want to only include jobs you’ve had mostly positive experiences with in case they ask for a reference.
  5. Know your industry. The New York Times points out that if you’re working in technology or have a lot of experience in startup companies, jumping around is considered normal. Also try and sum up the number of years of experience you have in your industry instead of concentrating on the number of years you have at a specific job.Rebuilding your creditIf you have a low credit score, it could be holding you back from loans, good terms on those loans, and even renting an apartment.
    1. First things first, you need to check your credit score to understand how far you need to go and what types of issues are holding you back. You can obtain a free credit report from each of the three credit reporting bureaus, and these reports will illustrate if you have missed any significant payments or are in a substantial amount of debt.
    2. According to Wisebread.com, payment history accounts for the largest factor affecting your credit score. Pay any lingering bills by bringing all of your accounts up to date or setting up a payment plan. Then be sure to pay your bills on time in the future.
    3. Be knowledgeable about credit cards. While they can be a slippery slope into debt, be wary of closing your credit card. The next most important contributing factor in your score is your line of credit, and how long you’ve had one.

    It may take time to rebuild your credit score, but if you practice good financial habits, in time it will improve.

    Getting out of debt

    1. Start now. There are easy things you can do to start digging out of debt right this minute. Stop using your credit card or going out to eat, start couponing, and cut things like cable or that gym membership.
    2. Create a budget. It’s important that you’re aware of what you’re spending your money on and can then craft a plan that will allow you to spend your money on the most important things to you. There are several apps out there that can track where you spend money. By utilizing them, you can better see your priorities and create healthier spending habits for the future.
    3. Set goals. It’s important that you visualize why you’re saving your money. By setting a goal, you can easily motivate yourself to reach it.

    Rebuilding your credit and rehabbing your finances is a great way to set the stage for financial success. Remember that it doesn’t happen overnight; slow and steady wins the race. Before you know it, you’ll be on your way to better credit, higher savings, and less debt. Good luck!

Post by Member : Alexishall