The word resiliency is defined as “the capacity to recover quickly from difficulties, toughness.” This is often used relating to physical wellness and stamina and the ability to recover from an illness. Financial resiliency is the ability to recover from an unexpected financial burden, like a medical bill or car repair that you didn’t see coming.
When you are thinking about getting healthy, the prescription for good health is straightforward. The core principles include eating right, staying active, and not smoking. When it comes to your finances and financial wellness, what’s the prescription to financial success?
Many financial experts are referring to the current economic situation in the US, and much of the world, as the “Everything Bubble”. Around the years 1995-2000 we had the tech bubble, otherwise known as the dot.com bubble, where the NASDAQ, which has a predominance of tech stocks, quintupled. The NASDAQ then plummeted by nearly 77% from 2000-2002. Fortunes were wiped out and companies with huge valuations and no earnings disappeared after first being valued at billions of dollars, without any real products or earnings.
Thinking about your finances every day is something most people don’t want to do. For most of us, thinking about finances happens when we are stressed over money and trying to make ends meet or during the time of a significant life event.
Financial wellness is achieved by taking on “healthy” financial habits. It means being able to be proactive with sensible money habits.