Hugh Lambert No Comments

I shared a quote during the week reading, “May you live in interesting times”.

The irony is, that interesting times are troubling times.

Now, in all times, particularly in troubling times, you should have financial resilience and that is the ability to cope with adversity or unforeseen circumstances from a financial point of view.

To start with, you should have an emergency fund in place.

That is cash on short notice if you need to draw on it to repair a property or a vehicle or it could be in the event of a redundancy.

After that, it’s having adequate insurance in place.

So, in the worst case scenario, it’s life insurance or if there’s illness, it’s illness cover to protect a business or a home, against any sort of financial pressure.

From the point of view of pensions and investments, it’s diversifying your holdings, so that if there is an increase in interest rates or possibly a slowdown in the economy.

If there’s a particular asset or sector that’s put under pressure, it’s so you’re not completely exposed to that.

Then lastly, it’s trying to pay down debt as quickly as possible.

Typically, that’s chipping away, it’s not necessarily one lump sum payment.

Again, if you see increasing interest rates or a slowing economy, a high level of debt can put pressure on things quite quickly.

If you have any queries or need to understand how your financial resilience may affect your financial planning feel free to get in touch to start a conversation💬

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