Creating Financial Resilience

Identify financial vulnerabilities, cultivate a positive money mentality and implement practices and systems today so you can enjoy true financial freedom.

We are pleased to share the recap from our June Women’s Forum program: Creating Financial Resilience. It was very fulfilling for us as founders of our firm and the Women’s Forum to lead this program that combines our passions to help you create greater financial resilience so you can have confidence that when life throws you a curveball that your financial freedom and peace of mind will remain intact.  

Key Takeaways

Financial resilience is having sufficient savings and assets to survive when an adverse or difficult situation occurs. It requires you to: 

1. Embody a positive money mindset, and  
2. Have taken steps to create a financial foundation and processes that enable you to thrive and endure the challenges you may encounter.

How do you embody a Positive Money Mindset?

• Reframe from victim to victor. Unexpected challenges happen to everyone. Remember this when it’s “your turn”.    

• Focus on what you can control.  Avoid wasting energy on things outside of your control, including things that have already occurred. Then you can focus on your positive path forward.  
• Be optimistic! It is essential to being financially resilient. Optimism is one of the most powerful tools to having a positive money mindset. Believe in a positive future. Be action-oriented. See obstacles as challenges, not problems.   
• Build self-awareness. Pause before acting and consider if your action is intentional or impulsive.  Ask yourself if the decision aligned with your longer-term financial goals or will this choice negatively impact your goals? 

What Systems/Tactics can you use to create financial resilience?

• Create a financial plan.  This will help you uncover if your actions are supporting your goals, and options to realign them if they are not, and monitor the success of building more financial resilience and create metrics and confidence that your financial well-being will survive disruption! 
• Build an Emergency Fund – Also known as a NOW Fund! 
• Create and stick to a budget.  Remember Warren Buffet’s motto quote:

“Don’t save what is left after spending but spend what is left after saving! 

• Manage debt.  Reframe your use of credit cards as just a cash alternative not as what you can use to pay for things beyond a monthly budget cycle. 
• Automate savings and investments – Invest immediately from your paycheck into your 401k, HSA, savings/investment accounts, 529 plans, etc. 
• Invest regularly – It is about the behavior and not about the amount!  
• Create an estate plan to protect you and your family.  And, be sure to introduce your executor to your attorney, CPA, etc., at least by email.