Make Your Finances Work for You: Part 2
Build financial resilience
Life is full of surprises, and financial setbacks often come when we least expect them. While you can’t always predict the unexpected, you can prepare for it by building financial resilience.
Let’s face it, unexpected expenses always seem to pop up at the worst possible moment, like when your car decides to break down on the way to a family vacation.
Financial resilience is about creating a foundation for handling surprises confidently, adapting to changes, and moving toward your goals even when the unexpected happens.
This second part of the series explores how to be financially prepared, strengthen your earning ability, and develop practical habits that make your finances more secure.
Create a financial safety net
Unexpected expenses can strain even the most carefully planned budgets. A financial safety net allows you to handle surprises without derailing your long-term goals.
Shimmy and Chavi’s* car broke down just a few weeks before an expensive Yom Tov period. While the timing was less than ideal, they avoided financial stress by using the small emergency fund they had been steadily building. It wasn’t a huge sum, but it was enough to cover the repairs and keep their Yom Tov plans on track.
Building an emergency fund does not mean saving large sums overnight. Start with small, regular contributions, even as little as £10 a month. Over time, these savings can grow into a meaningful buffer that lets you confidently manage life’s surprises.
A safety net doesn’t need to be perfect. It simply provides breathing room so that financial setbacks don’t disrupt the things that matter most.
Boost your earning power
To build real financial resilience, you need to strengthen your ability to earn as well as save. Your income is one of your most valuable assets, and building your skills and diversifying your opportunities can significantly improve your financial stability.
Increase and diversify your skills: Consider learning new skills that are in demand or complement your current expertise. This could be anything from technical skills to project management. Expanding your abilities makes you more adaptable and opens up new earning opportunities.
Climb the ladder: If you’re employed, explore opportunities for promotions or raises. Highlight your contributions and demonstrate your value to your employer. Timing your request after a successful project or performance review can increase your chances of success.
Consider a career shift: In some cases, moving to a different industry or role may provide better pay. Research industries that value your skills highly and position yourself for a role that offers greater financial potential.
Explore flexible side jobs: If you have a talent or hobby, consider using it to generate extra income. Teaching, consulting, or offering freelance services are great ways to earn on your schedule while maintaining your primary responsibilities.
Strengthening your earning potential allows you to easily deal with challenges while also spending on what you want, like sending your kids to karate lessons so they can finally stop practising on each other.
Prioritise your spending
Building resilience starts with understanding what matters most. Clear priorities ensure your spending and saving decisions are intentional and aligned with your values.
If you are working toward a major goal, such as saving for a Simcha or a family holiday, break it into smaller, more achievable steps. Instead of focusing on the entire amount, set weekly or monthly targets that feel realistic and manageable.
When unexpected expenses arise, reevaluate your priorities. Could you pause non-essential spending temporarily or shift money from less urgent areas? Small adjustments allow you to focus on your most important goals while addressing immediate needs.
Strengthen now for a strong future
Financial resilience is expecting the unexpected and preparing for setbacks. By creating a safety net, strengthening your earning potential, and developing proactive habits, you can build a foundation that supports your family’s priorities no matter what life brings.
Financial success is making the best of every opportunity and keeping a straight face when you ask the plumber, “It’ll cost how much?!”
