Building financial resilience is essential from "summary" of Dhan-Sampatti Ka Manovigyan (The Psychology of Money - Hindi) by मॉर्गन हाउज़ल
Financial resilience is the ability to withstand financial shocks, such as losing a job or unexpected expenses, without significantly impacting one's financial well-being. It is like having a safety net in place to protect oneself in times of need. Building financial resilience is crucial because it provides a sense of security and stability in an unpredictable world. One way to build financial resilience is by creating an emergency fund. This fund acts as a cushion against unexpected expenses, such as medical emergencies or car repairs. Having an emergency fund can help prevent individuals from going into debt when faced with unforeseen circumstances. Another aspect of financial resilience is having a diversified income stream. Relying on a single source of income can be risky, as it leaves individuals vulnerable to job loss or economic downturns. By diversifying their income through side hustles or investments, individuals can better withstand financial setbacks. Furthermore, practicing good financial habits, such as budgeting and saving, can also contribute to financial resilience. Budgeting helps individuals track their expenses and identify areas where they can cut costs, while saving allows individuals to build wealth over time. These habits create a strong financial foundation that can withstand financial challenges.- Building financial resilience is essential for individuals to navigate the uncertainties of life. By creating an emergency fund, diversifying income, and practicing good financial habits, individuals can protect themselves from financial shocks and secure their financial future.
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