Have you ever heard someone say they wanted to be more resilient? This word is used in different situations, but have you thought about resilience applied to finance? Because know that learning to have financial resilience will help you in the most delicate moments of life.
The COVID-19 pandemic put the financial planning of many to the test, and it was necessary to know how to deal with insecurity. And, yes, it is possible to maintain stability even in situations like these. Want to know how?
Keep reading and learn how being resilient can help you control your finances!
What is financial resilience?
The word resilience was used in physics to describe the property of a body to return to its original shape after being subjected to deformation .
Some time later, other areas began to use the term. And that’s when he gained the meaning of knowing how to deal with adverse situations . And not only that, but also going through them and coming out even better, stronger .
In the case of financial resilience, we are talking about a person who goes through difficulties related to money, but has the necessary strength to get back on top. Remembering that even if a person has financial organization , an unforeseen event, such as job loss or income, can happen.
And that’s why you need to be prepared to face the most diverse scenarios. A good habit for your finances is to save and invest , so you can increase your assets and not be caught by surprise when something unexpected happens.
Why is being resilient in finance important?
In addition to financial crises, high dollar, inflation and other things that impact the economy, your lifestyle can also make you vulnerable. Several unexpected problems can appear. A house renovation, a layoff, a health issue.
But those who have financial resilience need to be prepared for unforeseen events . Not that you’re expecting something like that to happen, but your planning should include the possibility of unforeseen events.
And why plan? Although we are talking about the ability to go through adversity, it is a mistake to think that only willingness and goodwill will get you out of anything. Being prepared for these moments will help you to be resilient, because instead of just worrying, you have ways to get back on your feet.
Of course, there is also an emotional side, trying to remain calm, focused and clear. But having your finances organized will give you greater peace of mind to face any crisis.
How to use financial resilience to plan for the unforeseen?
You may have noticed that when we talk about financial resilience, we are also talking about planning. Disposition and will are essential, but organization will help you solve problems.
Having a stable financial life requires work and dedication. You need to learn to save and save money so that you can be secure in spite of what is happening around you.
And if you haven’t prepared and are facing a delicate moment, don’t worry. It is possible to make decisions that help you out of this situation.
The first step is to analyze your financial situation as a whole. Identifying where your salary is being spent, what expenses can be cut, that sort of thing.
To have a good result you need to have control over finances. Have a balanced budget within your reality, and as soon as possible, start investing . That way, you are not taken by surprise once again!
How to practice financial resilience in everyday life?
Having financial resilience is important to maintain your family’s well-being and quality of life. So check out some tips for you to practice and prepare to be resilient.
– Get organized: this is the beginning of everything. Keeping an expense and income spreadsheet can help you organize. Know how much you need per month to maintain your standard of living.
– Invest in financial education : we talked about making investments before, but for you to make good choices, also invest in knowledge. This will help you in the process of improving your relationship with money.
– Create an emergency reserve: the best way to face an unforeseen event is to be prepared. And the emergency reserve is just for that, having a cash value to use in delicate moments, such as a health issue, for example.
– Cost reduction: there is no way, you need to review your habits and that of the whole family. Impulsive purchases take a big chunk out of your budget. You don’t even realize it and when you see it, you’ve already spent more than you should,
– Keep your spirits up: the last tip is a little more subjective, but no less important. As challenging as the moment you are going through is, you need the willingness to face it. Staying calm and focused will help you get through that situation faster.
Don’t forget that you have the ability to start over, and using the right tools you can improve both your personal and financial life.
