Building Financial Resilience
Earlier this week, as I prepared for a meeting, I found a rotten banana in my lovely Louis Vuitton black Epi leather bag…yes, you can imagine the look on my face! But what is interesting is that it triggered a childhood memory that I had forgotten and one which could explain my need for safety, which later in life has translated to the strong desire to build my Financial Resilience.
You see, when I was 5 years old, I remember being TERRIFIED of fires & feared that one would burst out in the middle of the night and my family & I would have to FLEE.
So, what does a young & resourceful girl do to prepare? She packs a backpack with Emergency items for SAFETY – including fruit (bc we may need to eat something after fleeing…obvs) – and hides it under her bed.
It was discovered months later by my father (after everyone was trying to figure out the random smell)!!!
Decades later, here I am. The fear of fires is thankfully vanished, and the backpack upgraded to LV, but the feeling of SAFETY remains a core part of my Money Mindset.
And the KEY element of that desire for security is to feel FINANCIALLY SAFE.
So, how do we achieve this?
By building FINANCIAL RESILIENCE my friends!!!
⭐ Below are my Top 7 Tips: ⭐
1. BUILD YOUR EMERGENCY FUND – This is a cash fund (not invested) that could cover your living expenses. I advocate for 9-12 months.
2. SET YOUR FINANCIAL GOALS – Put them in writing (yes!) – have a time horizon and make an action plan to achieve them.
3. BUDGET – Align your budget with your Values & Financial Goals in mind.
4. PAY YOURSELF FIRST – It is a non-negotiable. You are #1 when it comes to financial safety. When YOU ARE SAFE, those you love will be safe too. This includes putting money aside for RETIREMENT (via tax-advantaged vehicles).
5. INSURANCE – Make sure that you have the basic insurances in both your Personal & Business life.
6. INVEST – Do NOT let your money sit idle in a savings account (unless it is your emergency fund). And YES, investing does involve RISK, but it can be done in alignment with your Risk Tolerance. Also remember, if you have any type of retirement/pension plans, then you are already an investor! Be mindful and know what you are invested in.
7. WILL & ESTATE PLANS – These are key MUST-DO’s to protect our financial wishes & look after our loved ones. They can also be extremely tax efficient. Plan ahead!
Remember, building Financial Resilience takes time, focus, and energy. You can do this, the KEY is to TAKE ACTION! One building block at a time.
If you want to discuss any of the above or need help in building your #financialresilience, I am here to help. Just book a FREE 20min Discovery Call & let’s get chatting HERE & let’s get chatting.
As always, remember to Wear Your Money Crown & Rule Your Finances!
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