5 Ways To Become Financially Resilient
These are five ways how you can work to become resilient in a society where most people accept being in debt. It is up to you to make the changes you need.
At some point, you may have found yourself in financial hardship. You may have had an unexpected expense come up, a health problem that prevented you from being able to work, a job loss, or poor financial planning that resulted in you becoming broke. Being broke and financially strained can be overwhelmingly stressful. Being broke does not have to be a permanent state. Because there are ways that you can flourish and thrive in your financial life. You can become financially resilient. Your mindset is a large part of whether or not you are financially successful. Another aspect is you must work to build a solid financial foundation.
These are five ways to become financially resilient in a society that wants you to be poor, broke, and stuck in a scarce mindset.
Evaluate Your Current Financial Situation
The first step is to look over your current financial situation. List your current income, expenses, debt, and assets. You begin by writing down your current income. Depending on your job type, you may have a salary or be more variable. You want to have a fixed number. This will help you a step further down on this list.
You then want to list all your monthly and yearly expenses. This will help you know what expenses you can’t get rid of and which you can eliminate. For example, you probably can’t reduce your grocery, fuel, or electricity bills too much. You could decide to cancel any subscriptions that don’t improve your life. Those could be entertainment subscriptions to Netflix, Hulu, Spotify, et cetera.
If you have any debt, you want to make a plan to pay off debt. The article below describes the seven steps to pay off the debt to become debt-free. The most important thing you can do is get out of debt before moving on to more advanced financial strategies.
Finally, you want to make a list of all your assets. An asset is the opposite of debt. Assets are what add to your net worth. They are net benefits. Assets are how you can begin to build wealth. Types of assets include:
Equities (Stocks, ETFs, and bonds).
Hard assets (businesses, farmland, real estate, precious metals, factories, et cetera)
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