Why is building financial resilience important?

Financial resilience measures our ability to withstand challenges in our life that may result in financial pressure. This could include life events such as divorce, bereavement, job loss or ill health, to name but a few examples.

Whilst we can’t control everything that happens in life, we can prepare ourselves for potential future setbacks with solid financial planning to make your situation secure, no matter how unpredictable life may be.

Building financial resilience is the longer-term approach to managing your money, and can help people to recover more quickly from stressful financial situations.

At any time, unexpected life events can suddenly change our circumstances. Having a solid financial plan in place and setting financial goals for your future are good steps towards improving financial resilience. This can help not only to reinforce optimism, but ensure that during difficult times, financial stress does not become an additional burden, as worrying about money can massively impact mental health and wellbeing.

Another useful measure towards building financial resilience is to improve your own financial literacy. This can help you to feel more generally confident and better informed.

How can specialist support help you?

A Specialist Financial Adviser can help you to build financial resilience and discuss other useful options and measures such as creating an emergency fund, protecting your income and exploring potential investment options to make your money work harder for you.

Bear in mind that the value of investments can go down as well as up and you may get back less than you invest.

Having the right protection in place can play a large part towards financial resilience. A good starting point here is to sit down with an adviser and gain a thorough understanding of your current workplace benefits, such as sick pay and your death in service.

It is important to consider these, along with any other provisions you may already have, and work out how long these would last if your income were to suddenly cease. Once this has been established, your adviser can explore the options available to protect your income – helping to put you in an informed position.

A good adviser is there to educate and empower you to take control of your finances and your financial future, as well as helping you navigate challenging times. It is a relationship built on trust, without judgement.

During a review, your adviser will work to understand your circumstances and define your goals. After assessing your individual situation as a whole, they will put you in an informed position regarding your options and look at ways to improve your financial resilience, making your income and capital work harder for you.

If you would like support or guidance on understanding your financial position, speak to a Specialist Financial Adviser from Wesleyan Financial Services for a financial review. Charges may apply. You will not be charged until you have agreed the services you require and the associated costs.