Financial resilience has always been a topic to be passionate about, being able to overcome financial difficulties and other issues created by the stress of saving and processing what to do with your money. Financial resilience is the potential to deal with life’s circumstances that have correlation with money or one’s income, including but not limited to medical bills, disability, or other problems that may affect an individual.
There are many ways to build financial resilience, the most common way to make sure you live a comfortable lifestyle, you should always have a plan about what you want and need to do with your money, how to save it and how to build it up. You should always build up an emergency fund, the reason you should build this up is because life always throws curveballs at you, and you never know when you might need a little bit of extra money. Another prime way is to make sure you pay off your debt as soon as possible, letting your debt build up negatively effects savings and your process of building up your money.
Planning for your finances is easy. First, start by setting goals for yourself, do not set goals that are unattainable, but set realistic goals that you know with a little bit of effort you can achieve. Have a plan for your taxes, taxes add up over time. Part of being financially resilient is having a plan for paying taxes and having a plan for any tax refund that comes. Just remember if you can dream it, you can do it. Everything is achievable if you are prepared to work for it. Having a plan for your retirement is also important to financial resilience. Retirement Is supposed to be a relaxing time to celebrate the end of all your arduous work and finally being able to relax and enjoy your life. If you save up money you can comfortably enjoy the rest of your life, whereas if you have no savings, you have a lot more stressors in your life, so you are not able to fully enjoy the time you deserve.
Building up an emergency fund is not a challenging thing to do. Looking at it, it is just making a budget to be able to have extra money when you need it. Most banks offer an option to set up automatic deposits, so essentially when you get paid you allow the bank to transfer the money you have selected into a separate account so you are not left with the stress of figuring out every month how to transfer the required money over to save, it will already be done for you. Financial resilience may also include, look for other ways to build up your income, to relieve yourself of extra financial hardship by saving a little extra money every pay cheque, try to cut extra expenses wherever you can. At the end of the day, money can be a tricky thing to come by, because sometimes we just do not know what to expect. That is why it is important to have an emergency fund, so when the worst happens, you can still afford to live a fulfilling life.
Paying off your debt and making sure your life is affordable is part of financial resilience. Life is expensive and it is an incredibly stressful thing when you cannot afford to pay your bills on time, when you cannot buy your children those brand-new Jordan’s because spending that extra money on those shoes, may mean you cannot put food on the table. We all make sacrifices in our lives to make sure those we love are happy, but debt does not need to be a lifelong problem. First, if you can spare the money pay more than the minimum payments this will help by shortening the amount of time you need to be paying the debt for. Always pay off your most expensive loan first, that way the amount of interest being charged is not increased for the higher payment. Keep track of your bills, make sure the payments are received and paid on time.
At the end of the day money comes and goes. Building up your financial resilience does not have to feel like it is a burden. Be sure to keep track of and responsibly manage your finances in a way that does not add additional stress to your life. Financial resilience is something to be passionate about.