The hustle and bustle of the holiday season is well underway. If getting financially organized is at the bottom of your immediate to-do’s, it’s completely understandable. But before you know it, the holidays will come and go, and we’ll be preparing to start a fresh new year. Working on those resolutions? Add increasing your financial resilience to the list.
Financial resilience is the ability to successfully navigate the unexpected things that life throws at you. Ideally, you want to have the flexibility in your cash flows to be able to overcome an emergency without going off the financial rails. Emergencies happen all the time to people with all levels of income. It doesn’t matter how much money hits your bank account each month. What matters is that you give yourself breathing room in your monthly bills and expenses based on your income. Then when you have something crop up that you need to take care of, you’ll be able to do it without going into debt or asking for help from others. That’s being financially resilient.
If you’re currently in the living paycheck to paycheck boat, you’re certainly not alone, though it may feel that way sometimes. Even high earners can be living from one payday to the next. The social media world we live in can make it seem like everyone else is living carefree lives. What you don’t know from those perfect photos you’re scrolling through is what’s going on behind the scenes. The majority of Americans are one unexpected situation away from financial disaster. Don’t get down on yourself if you have some work to do. Most of us do.
The tendency is to let those things that are outside of your control make you feel financially helpless. You can’t keep unexpected life emergencies from happening. What you can do is focus on your day to day habits and behaviors and work toward the financial goals you’ve set for yourself. Small changes over time lead to big results. Instead of starting another year feeling like you’re on a financial roller coaster ride, take the time to get a handle on things now.
Start by increasing your overall knowledge about what to do with your money. The more you understand about how personal finances work, the easier it will be to navigate complex situations. If you don’t know what to do, ask! Whether it’s a question about your 401(k), saving for your kid’s college tuition, preparing for retirement, putting a down payment on a house, or something else entirely, you deserve to know the best route to take. Don’t be afraid to reach out for advice. If we can be of any assistance, we’d be happy to do so.
Start the coming year by building some momentum toward achieving financial resilience. Before you know it, you’ll be able to take whatever life throws at you with confidence.