It’s all well and good to be in decent financial shape when everything is going well in your life. That mostly has to do with being able to manage a budget and not completely go mad and spend your money on shiny trinkets every time you’re online or out and about.
But, as we all know, life is almost always messy, and if things aren’t a bit chaotic and tough right now, you can be pretty sure that they’re going to become that way again before too long.
You never know when you’ll need to contact Leyba Defense PLLC in order to manage a legal defence, or when you’re going to need to pay extra for healthcare. Here’s a primer on being financially resilient when times get tough.
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Live a more frugal life today, so that you can have more of a safety net for tomorrow
Even if you’re not making much money at all, it is almost always going to be possible for you to put some savings aside for potential future emergencies – mostly, this just comes down to what you’re willing to sacrifice in the present day in order to make this happen.
Extremely rich people can still end up going broke, if they live totally outside their means and try to be too extravagant all the time. Less well off people, by the same token, can often manage to live within their means if they’re willing to adopt more frugal lifestyles.
Ask yourself what luxuries and pleasures you’re willing to pass up on today, in order to create more of a safety net for yourself, for tomorrow. Could you do without that takeaway meal every week? And how much do you really need that app subscription of yours to run your life and have a good time?
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Seal up as many of the “holes in your bucket” as possible
It’s difficult to be financially resilient during tough times, if you’re struggling to manage, track, and organise your finances due to all sorts of small recurring transactions.
These days, more and more of us are signed up to subscription services of different sorts, and many of these apply monthly subscription fees. While each individual fee is not likely to seem like a big deal by any means, when you stack them altogether, you can quickly end up bleeding away a lot of your money without even realising it.
You’ll be more financially resilient during tough times when you have a clearer sense of exactly what’s happening with all of your money at any given moment, and when you aren’t wasting money on tools and services you barely ever use.
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Have systems in place to mitigate the negative effects, and to help you to move forward
When a negative and chaotic situation does strike, you could either do things to make it better and to mitigate the harm, or you could do things to make it worse and to deepen the hole.
Usually we react in automatic ways when negative situations arise. In fact, we tend to react in automatic ways, in general. One of the keys to being resilient during a negative situation in life is to have the right habits in place to help you move forward, rather than letting everything fall apart.
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Don’t Be Too Hard On Yourself
Misfortune can strike anyone in life, and we aren’t necessarily prepared for it when it comes. We can have a tendency to blame ourselves for the financial fallout of life events, but there is no need to feel ashamed and isolated for factors beyond your control. Financial setbacks are a part of life.
Even if you have built up your savings and you have a bit of a rainy day fund, you might still struggle to make ends meet. Recovery can take a while, so if things aren’t back to normal within a couple of months, don’t panic too much. Put away your pride and ask for support – lenders are often willing to work with you if you inform them of your changed circumstances as soon as possible.
Don’t Rush A Decision
Some life events can be accompanied by a payout – from insurers, a severance package or a divorce payout. If you do suddenly get a large amount, you may be wondering what the best move is – starting a business, investing in some shares or another investment, or paying off your mortgage?
Actually the best decision can often be not to make a decision at all immediately. Give yourself a chance to adjust and not make any rash decisions too soon. Protect yourself from making any decisions while you’re vulnerable, so you don’t do anything which may damage your financial prospects in the long term.
If you’ve got negative habits in the here and now, you better start working on changing them, i’m sure this will help you in the long run 🙂
Stanley
PS Just enjoy your Day and do something just for you:)
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