Money Saving Monday: How to recover from financial mistakes and get back on track

SPOKANE, Wash. — Financial mistakes are common, but how you respond to them determines whether you’ll recover quickly or spiral into deeper financial trouble.

“Almost all of us have made financial mistakes, whether it’s buying a car or a home you can’t afford or not having a safety net after losing your job,” Derek Deis said in 4 News Now’s Money Saving Monday segment. “The key is not to panic.”

Barin Saxton, a financial coach at Canopy Credit Union, emphasized the importance of seeking professional guidance rather than jumping at the first available solution.

“I would certainly meet with a financial coach if you are stressed, but try not to jump into the first available option for you,” Saxton said. “And that is where people often get into severe long-term problems with debt or other situations that can really get them into trouble.”

Reframing financial mistakes as learning opportunities rather than failures helps you move forward more effectively. “I made a mistake, but that’s okay. I’ve learned from it and now I know what not to do moving forward, which can make you a better decision maker in the future,” Saxton said.

One of the biggest dangers is rushing into solutions without comparing alternatives. Panic-driven decisions often lead to debt settlement companies, buy-now-pay-later cycles, or payday loans—all of which can cause more harm than good.

The good news: help is available. Government programs like SNAP and Medicaid, along with free financial coaching through credit unions, can support you during financial hardship.

“Programs like SNAP, Medicaid, and other publicly available resources are there to give you a hand when you are struggling,” Saxton said. “And there is nothing wrong with taking advantage of those resources.”

By taking time to assess your options, seeking professional advice, and utilizing available resources, you can recover and build stronger financial habits moving forward.