When Life Hits and You've Blown Through Your Savings, Remember This

Financial guru Suze Orman answers questions from listeners and gives valuable advice on her podcast, Suze Orman's Women & Money. Recently, a listener shared her experience of depleting her savings while navigating a stressful life event and asked how she could move forward. Orman offered solid advice to help anyone who has spent their savings on costly life events or gone through difficult financial situations.

If you've used up your savings, there is a path forward

Life is expensive, and no matter how well we plan, unexpected expenses come our way. Using money from your emergency fund to cover costs can make the situation less stressful. But what happens when you no longer have extra savings in the bank and fear additional unexpected bills coming your way? Orman suggests that your mindset can make a difference.

In a recent episode, a listener asked for guidance about navigating life after using up most of her savings. She used her retirement account savings, kids' college savings, and regular savings to cover legal and living costs while battling a custody battle. With only $10,000 left in her savings account, she was feeling stressed about future costs that might arise. With life being so expensive, she also worried that she would be unable to save more.

Orman noted that there's no benefit in regretting past financial decisions or money spent. If you continue to dwell on the past, it can make it harder to move forward. Instead, she suggested focusing on the good instead of the bad and creating a new plan for the future.

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Orman said, "There is a law of money; look at what you have, not at what you had, and that applies to everything in life. Be careful about the words that you use because your words become your actions, your actions become your habits, and your habits become your destiny."

She continued, "I want you to make a promise that every single day you will write down 25 times. You will say it silently to yourself 25 times. You will scream it in your car 25 times the following, 'I have more money than I will ever need.' Anytime you get afraid, and you think that you can't, let your thoughts tell you that you can."

Pay attention to your money mindset

Orman's guidance is useful advice for anyone going through a tough time financially. We all make mistakes in life, and many of us have made our fair share of financial mistakes that cost us a lot of money. But that doesn't mean that we can't move forward. Your current situation doesn't have to be forever. It may take time to get to where you want to be, but it's possible.

If you've recently gone through a difficult financial situation, knowing and believing there is a path forward can do wonders. It's okay to take some time to come to terms with money spent and any difficult financial chapters that you've experienced in your life. But don't let your past challenges take hold of you and shape your future forever.

Take time to remind yourself of the good that you have. Then, decide how you'll grow from the situation and outline new financial goals. If it feels overwhelming, start with small goals first. You don't have to make big steps all at once. Learning more about financial planning can also help you achieve your goals sooner. Check out our personal finance resources to learn more.