BUILDING FINANCIAL RESILIENCE

In terms of finances, ignorance is not bliss since the less you know, the more you pay, and the more expensive it gets for you.

What exactly is Financial Empowerment?

Controlling your money habits and gaining important money-making management abilities are examples of financial empowerment. It is DIY (Do It Yourself) without the assistance of Financial or Wealth Advisors.

TAKE CHARGE OF YOUR MONEY HABITS.

The first step in improving your finances is to visualize and work towards the life you want for yourself.

What Does Your Net Worth Have To Do With It?

Your net worth is the most accurate indicator of your financial stability. It is also your assets minus your liabilities.

A liability is everything you own that has monetary value, whereas an asset is anything you hold that depletes your resources. The easiest strategy to increase your net worth is to lower your liabilities. While assets may remain constant or expand in value, they must either remain consistent or fail.

However, keep in mind that you are your most valuable asset.

ACTIONS TO HELP YOU START YOUR PERSONAL FINANCE JOURNEY

1. Evaluate your financial situation: Objectively assess your existing financial status.

2. Establish a personal relationship with money.

Wealth is an emotion that you deserve to feel. Making money is an essential life skill.

3. Establish financial goals: Sometimes you make money but manage it poorly. Setting a financial objective allows you to not only make money but also manage it well and create or transfer wealth.

Build Financial resilience through self-development by:

• Leveraging Digital Skills?
• Acquiring Knowledge?
• Networking Valuably

HOW TO PUT YOUR MONEY TO WORK.

1. Spending wisely does not always imply spending less.?
2. Budget: Live within your means while also expanding your means.
3. Save as though your life depended on it. It most likely does.
4. Consider COMPOUNDING investments.
5. Invest where it counts.?

Improving your financial knowledge, developing practical skills, adopting the correct mindset, and making informed decisions are all part of self-development for financial resilience.

Here are 13 practical strategies for increasing financial resilience.

1. Educate Yourself

Learn about personal money, budgeting, investing, and financial planning by reading books, articles, and credible Internet resources.

Stay up to date on financial trends and strategies by following financial gurus, blogs, and podcasts.

2. Evaluate Your Present Financial Situation

?Make a thorough inventory of your income, expenses, obligations, and assets. Determine places where you might minimize unneeded spending and save money.

3. Develop Specific Financial Goals

?Establish financial goals for the short term (1-2 years), medium term (3-5 years), and long term (10+ years).

Your objectives could include saving for an emergency, paying off debt, purchasing a property, or retiring comfortably.

4. Create a Budget

Create a budget that divides your income between expenses, savings, investments, and debt payments. Maintain a strict budget and examine it on a regular basis.

5. Create an Emergency Fund

Save three to six months of living expenses in an easily accessible account. This money will serve as a safety net in the event of an unforeseen financial setback.

6. Debt Management

Pay off high-interest debt, such as credit card amounts, as soon as feasible. If possible, consider debt consolidation or refinancing to lower interest rates.

7. Diversify Your Income Sources

Consider alternatives for extra income, such as freelancing, consulting, or a side business. Multiple revenue streams can provide financial stability and resilience.

8. Make Sound Investments

Study the various investing options available, such as stocks, bonds, mutual funds, real estate, and retirement accounts. Begin investing early to reap the benefits of compounding growth over time.

9. Put money aside for retirement

Make monthly contributions to retirement funds such as a 401(k) or an IRA.

Utilise employer-matching contributions and tax breaks.

10. Exercise Frugality

Adopt a conscientious lifestyle by making deliberate spending decisions.

Distinguish between wants and necessities and prioritise necessary expenses.

11. Continual Learning and Adaptation

Remain up to date on financial market, regulatory, and economic issues.

Your financial strategy should be adjusted as needed to match with your goals and changing circumstances.

12. Develop a Resilient Mindset

When it comes to financial decisions, practise patience and discipline.

Accept that setbacks will occur, and instead of concentrating on failures, focus on learning from them.

13. Seek Professional Help

If you're unsure about a particular decision, seek the advice of financial consultants, planners, or experts. They can provide tailored advice based on your specific circumstances.

Remember that building financial resilience is a gradual process that requires commitment and consistency. By educating yourself, making informed choices, and continuously improving your financial skills, you can enhance your ability to weather economic challenges and achieve long-term financial stability.

'Solape Akinpelu , Guest Mentor, IMMERSE Coaching Company.