Many understand its importance but putting it into practice requires great deal of discipline. The process to become financially resilient is not pleasant. Some must forgo their material desires and others require stricter money management.
Being financially resilient refers to the ability to afford unexpected financial challenges such as the loss of employment, sickness, life events, etc. Being financially resilient allows us a greater ability to withstand and manage these sudden challenges. Having spoken to a group of people in Malaysia recently indicated to me that many are fully aware of the importance of being financially resilient, however, many did not take action to implement a discipline of increasing their financial situation.
Living from pay checks to pay checks
bring upon the constant fears of financial inadequacy. One must make a
conscious choice to either increase their income or reduce their
expenditures. For salaried employees, most elects to reduce their
expenditure unless they assume a side job. Having managed thousands of
financial hardship claims during my professional years, the impact on higher
income earners when experienced loss of financial stability was much greater
than average income earners. Does that mean some were already living
beyond their means?
To be financially resilient, one must be the boss of their own finances. They must learn to be brutal with their expenses and have the ability to control where they spend their hard-earned money. When one achieves financial resilience, one is on the journey of being able to increase their financial wealth. The ability of increasing wealth does not refer to how much money one has rather how they can better managed their wealth.
