Unexpected financial setbacks can be discouraging and make you feel like nothing will ever improve. However, many financial setbacks can help you start building financial resilience, something that may help in the long run. Exploring the advantages of financial resilience may help you better prepare for future financial challenges. Feel free to ask a Chattanooga bankruptcy attorney for help if you find yourself falling closer to bankruptcy.
What is Financial Resilience?
Many people think of financial resilience as remaining strong during financial hardships like financial setbacks, layoffs, and hard economic times. Not only can financial resilience allow these benefits to happen, but financial resilience could also improve personal finances. This can happen for multiple reasons.
For one, financial resilience involves a positive mindset that allows growth in response to challenges rather than shutting down. Growth may lead to adapting to a financial setback by exploring solutions rather than giving up and remaining stuck. This allows for the flexibility to make last-minute changes when needed to adapt to financial changes.
Financial resilience also involves proactive decisions and actions rather than not doing anything to try to change the financial setback. Those who are focused and organized tend to have more financial resilience. These attributes help with overcoming financial problems.
Lastly, financial self-efficacy involves the belief in yourself to be able to manage and take control of your finances. This looks like the mindset of believing the way you manage your money can impact your financial future. The more you practice financial skills and the more positive results you see, the more your financial self-efficacy will increase.
Strategies to Build Financial Resilience
There are several ways to build financial resilience to improve your finances. One way is to start changing your mindset from believing you have no control over your finances to the mindset that control is possible. This can be done by trying multiple financial strategies that involve financial resilience like:
Budgeting
Building an emergency fund
Escaping debt
Budgeting can be a quick way to start feeling more control over your finances. All you have to do is list out your monthly expenses and subtract them from your usual monthly income. List out what expenses are necessary like bills and which expenses can be cut from your monthly costs.
Setting a goal for how much money to put into an emergency fund may not only make you feel more financially secure but may protect your finances. When financial disasters strike, you know that you will have a financial security blanket with your emergency fund. Budgeting and an emergency fund can work together to help you escape debt.
Budgeting will let you know how much more money you can put towards debt to pay off debts faster. An emergency fund will let you maintain paying off debt when financial problems strike.
Call Tom Bible Law Today
You may not have to deal with a major financial setback alone. Take action by contacting us today at Tom Bible Law at (423) 424-3116 for a consultation about your financial situation. Our experienced team of Tennessee bankruptcy lawyers is ready to help you explore various financial options related to bankruptcy. We can be found in the Tennessee cities of Chattanooga and Tullahoma.