How Financially Resilient Are You? People who are resilient can cope mentally and emotionally during challenging times. Financial resilience means that a person can survive financially during a job loss, illness, or any other event that impacts personal finances.
Could you pay for major car repairs if your car broke down tomorrow, and have enough money left to pay your rent/mortgage, utilities, credit card bills, and other monthly expenses? If the answer is no, you are not financially resilient. But how bad is your current situation and how can it be improved?
There is a short online quiz from the Financial Health Network FinHealth® Score Toolkit that uses a 0-100 scoring system. The higher the score the more financially resilient a person is. Scoring under 40 signifies financial vulnerability. But no matter the score, there are steps that can be taken to improve an individual’s financial health.
- Set a budget.
- Find ways to reduce debt.
- Give up on regular splurges to save towards an emergency fund.
- Evolve, grow, and learn. New skills can mean higher pay.
- Focus on self-care. Living a healthy lifestyle can reduce medical bills.
- Talk to a financial expert and learn about ways to save towards retirement.
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