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Here’s how to do it:

Embrace your numbers

Hiding from your financial reality will not help.

No matter how ‘good’ or ‘bad’ you feel your net worth is, you’ll need to clearly understand your financial position.

List the value of each asset and liability you have, then subtract the total amount of liabilities from your total amount of assets to determine your current net worth.

Your net worth is what you will focus on growing as you reset.

Assets are things that you own, which grow in value, such as a home, investments, a savings accounts, a pension or a business.

Liabilities are debts such as a mortgage, car loan, line of credit, a credit card balance or money owed to friends and family.

The next set of numbers to crunch are your monthly obligations.

Bills and payments are different from liabilities because you need to pay them monthly, and sometimes weekly, biweekly or even quarterly.

These can be regular fixed amounts, like rent or a mortgage, or they can vary depending on how much you use a service, such as hydro. List each bill and payment, with the amount and the time of month that it’s due.

To keep these numbers organized, I recommend downloading a net worth template and budget tracking tool from Google.

Don’t fuss about making sure it’s the ‘right’ one. Anything will do for now so long as you understand the numbers.

Looking at numbers can be triggering, but it can also be healing to know what’s happening, and that you’re making a plan to improve your situation.

Don’t delay in making cuts to your spending

If you’re resetting, there’s a strong chance you’re going to have less money going forward. If your costs are not adjusted down, below your income, debt is the result.

Now that you have reviewed your monthly costs, it’s time to trim.

What can be cut completely? What can be renegotiated such as an insurance premium or even an interest rate on debt?

What can be downsized? Can you switch where you’re shopping and who your providers are to save?

Focus first on the immediate cuts. Then move on to the ones that could take more time such as selling a car or seeking out a lower-cost rental.

It’s also important to ensure you don’t trim essential costs too much, such as funds you need for emotional support, or even for medication not covered through benefits, during this time.

With these newly adjusted costs, update your budget template again. Is it running in the red? Do you need to trim even further? Keep going with the trimming exercise.

Start saving, even if it’s just a dollar a day

Using a high-interest savings account, start socking away a bit of money for a rainy day.

Pick a cadence you can stick to — daily, weekly, biweekly — and contribute an amount that is manageable. Automate the contribution so you won’t forget to make it.

This little fund becomes your financial life raft in the event that another unexpected event happens.

Over time, you’ll want to grow this pot of money to be three to four months worth of essential costs.

Hire an adviser to help sort through financial paperwork

If you hire any kind of financial professional, ensure they are a trustworthy referral.

They will assist in deciphering your insurance policies, giving you clarity on what you’re covered for, and where gaps might exist given your new situation.

Common coverages, aside from home and auto policies, are life, disability and critical illness insurance.

They’ll also guide you on if you need to update your will; or simply get one set up.

They will be able to offer advice on your investment portfolio, suggest any tweaks and talk with you about taxes.

A good adviser will also encourage you to review any lease agreements, financing documents and employment contracts you might have on the go.

They’ll help assess any risks associated with these, or tips to improve the terms.

They’ll tell you if you need to save more, cut bad habits, or get a new job. Be open to hearing their advice, and willing to take action.

Great advisers take in all the info from the above four steps, then craft a financial plan to move you forward; and that’s going to feel like real progress.