Financial Resilience

Financial resilience can be a daunting term to some of us. Many of us aren’t taught about emergency funds, investing or even taxes in school, so navigating this world as an adult can be unknown territory. Yet, as the pandemic has shown us, things can change drastically with little or no warning. As such, building your financial resilience is one big step towards having less worry and stress in your life, regardless of what happens. 

Financial resilience helps you build a firm foundation for your financial well-being – both in the short and long term. Having financial resilience means you have the ability to withstand life events that impact one’s income and/or assets. This might be a job loss, a reduction in income, or a major household or lifestyle expense. With financial resilience, you are able to be in control of money, which in turn gives you the freedom to live a more meaningful and impactful life!

Here are some ways you can start building financial resilience:

1. Educate yourself on basic financial knowledge (e.g. spending, saving, insurance, investing)
2. Inculcate good habits and practices that enable you to have a healthy relationship with money
3. Have a budget and keep track of your expenditure
4. Set aside emergency savings
5. Avoid debt
6. Equip yourself with knowledge about investing and invest only in products you understand