MONEY TALKS

You can’t control everything, but when it comes to your bank account, The Curve’s Victoria Harris has five top tips you can use to build financial resilience.

With so much going on in the world right now, life can often feel quite overwhelming, and worrying business headlines and sudden stock market movements don’t do much to help matters on the financial front. All the uncertainty and unknowns make life stressful, let alone our finances, which are an area in which we really need to be resilient.

Growing and maintaining wealth depends on your ability to anticipate risks and respond quickly to change, but the future is difficult to predict at the best of times. We rarely have much control over external circumstances, but here are five tips you can put in practice now to ensure you have as much control as possible over what you can control.

1. HAVE A REALISTIC BUDGET

A budget is the foundation of your personal finances, so create one that works for you and make sure you regularly update it. Your budget shouldn’t be something that restricts you or tells you ‘no’ — instead, view it in a more positive light and as a guide to help you reach your financial goals and achieve financial resilience.

2. DEVELOP MORE MINDFUL SPENDING HABITS

It’s hard to improve your finances and live within a budget if your spending habits have a mind of their own. Creating better habits could not only improve your ability to manage your finances, but might also help you to feel more confident with money. If you find online shopping tempting, making a rule that you’ll sleep on it before buying something can help you to make more mindful decisions.

3. KEEP CONTRIBUTING

Most of us will experience some form of financial stress in our lives; however, we shouldn’t let that make us lose sight of our long-term financial goals. Whether yours is saving for a house or building a retirement nest egg, if you can keep contributing money towards it (even if it is a reduced amount), you’ll keep moving closer towards your goals and be in much fitter financial health in the long term.

This can be easier said than done during times of stress, but it’s in your best interests to try not to make irrational decisions with regards to your investments. If the value of your portfolio is moving up or down, try not to feel pressured to buy or sell, or you could end up making a decision you’ll later regret. Remember: always take a long -term view when it comes to investing.

GROWING AND MAINTAINING WEALTH DEPENDS ON YOUR ABILITY TO ANTICIPATE RISKS AND RESPOND QUICKLY TO CHANGE.

4. REMOVE EMOTIONS (AS BEST YOU CAN!)

5. BUILD YOUR KNOWLEDGE

Educate yourself on money matters as much as you can. The financial world can be daunting when you don’t know what’s what, or even what you don’t know. Many of us aren’t taught about finances and investing at school, so navigating these subjects as an adult can see us in unknown territory, but in order to improve your financial resilience, you need a basic level of financial knowledge. Having the confidence to challenge yourself by seeking to improve your understanding is the best way to boost your overall financial wellbeing.

Victoria Harris is co- founder of The Curve, an investing platform for women. See @the_curvenz www.thecurve.co.nz.