Financially resilient. It may sound like a fancy like a buzzword to some, but this isn’t exactly a jargon and has a simple meaning. But being financially resilient isn’t about becoming rich. Also, it isn’t about the number you get every month. In fact, it is possible to be financially unsettled even if you receive adequate income when some curveballs are thrown unto you. Being financially resilient means being able to withstand all the challenges or unexpected happenings that could affect your income and your asset.
Financial resiliency should be everyone’s goal. So how can you equip yourself to survive those financial hard times? The following are simple yet effective tips that could help you.
Build emergency fund
No matter how we plan and strictly stick to it, life may not work out as planned. At some point, we can experience different types of storms or some unexpected expenses. And we should always be prepared for all these hardships. That is why we need to build an emergency fund.
An emergency fund is your budget set aside for emergencies and mishaps such as job loss, illness, and other unplanned expenses. Your emergency fund will also provide you peace of mind knowing that you have a safety net when things go wrong.
Earn from your hobby
Most of the employees nowadays have only one source of income. When you lose your job, things can be problematic for you. This is the reason why you should find a way to supplement your main income.
You can take a look at the skills that you have and find a way to make money from it. You can also learn new skills or share it with others and get paid. Many platforms are also offering passive income. You can also earn from your hobbies. For instance, many people found real fortune in playing poker in Thaicasinoonline. You can play other casino games and win real money. Just be careful because online gambling isn’t for everyone. Finding a means to earn extra income is easier these days because of the internet. Many platforms are offering passive income.
Consider getting insurance
Acquiring a life insurance plan can provide you with long-term financial resiliency. Aside from the fact that a life insurance plan can protect your family when you are not around anymore, life-insurance plans these days offer many benefits.
Some plans can cover your bills from critical illnesses. Others can build retirement funds. Moreover, there is a so-called variable universal life insurance nowadays. Here, a part of the amount you paid in your insurance plan is being invested in stocks, bonds, and mutual funds. So you are not only saving for your future, there’s a chance also that you can earn higher returns. There are several different types of insurance plans nowadays. It is important to choose carefully which one is the right for you.
Manage your debt
You can’t be financially resilient if you have a long list of debts to pay. If this is the case for you, you should plan on reducing or eliminating them promptly especially if those are credit card debts or personal loans. It’s harder for you to get your basic needs such as food and medicine if you have a big part of income that is reduced for this debt. You should adjust your budget smartly so that your income won’t end up on payments only.
Live below your means. Start saving!
Let’s be clear when we say live below your means doesn’t mean you can’t spend your money on the things that you love. Rewarding yourself with the things you love can inspire you to work harder. The goal is to enjoy your life yet still saving extra money. So how can you do this? The first step is to not spend more money than you earn. You can also set a budget for all your expenses and stick to it. You can start by writing all your expenses and crossing out the ones that you don’t value so much or the things that you don’t care at all. In this sense, you can cut some meaningless expenses.