A test of flexibility usually consists of someone reaching past their toes without bending their knees. Whether they were born with it or earned it through years of practice, flexible people have a greater range of movement than the average couch potato.
Being financially flexible doesn’t involve any physical feats of fitness. (You can’t pay someone to touch your toes for you, after all). However, it does provide elasticity to your budget. You can make more money moves without worrying about your budget snapping under pressure.
How Do You Become Financially Flexible?
Just like physical flexibility, some people are born with it, inheriting wealth from their parents. Most people, however, have to commit to following a budget that strikes a balance between spending money in the here and now and saving it for the future.
A budget helps you identify your life’s priorities, making sure you divvy up your cash in a way that aligns with your needs and wants. You should have enough to cover the following three loose categories of spending:
- The essentials like rent, food, and bills.
- The fun, everyday expenses that bring joy to your life, like hobbies and entertainment.
- The long-term goals that require saving, like a rainy day fund, holidays, and retirement.
By listing these things with intention, you’re more likely to portion your spending carefully rather than waste it on things you don’t need.
What Does Financial Flexibility Get You?
Check out the benefits to being flexible.
1. Adaptability to the Unexpected
How would you afford an unexpected trip to the clinic? After seeing the doctor, getting a few tests, and picking up medication, you could be staring down a hefty bill you didn’t plan on paying.
Without financial flexibility, an unexpected expense can stretch your budget to its snapping point. Before that happens, you can achieve artificial flexibility with loans online. Many people have visited a website like MoneyKey exactly for that reason. Emergency loans through MoneyKey offer a possible way to cover unexpected expenses when you have no other way to handle them.
While emergency online loans can work as a stopgap, they don’t compare to natural financial flexibility. An elastic budget has enough give to it that you can handle an unexpected prescription or doctor’s visit—either from expendable cash leftover from your paycheck or via savings you intentionally set aside for such an occasion.
2. Reduced Stress and Peace of Mind
Knowing your budget is supple can relieve financial tension from your life. It feels good knowing you have the cash backup to take on an unexpected expense on your own. That peace of mind can improve your mental health. And when you aren’t worried about how bad things can get, you can focus on other areas of your life.
Unfortunately for many, financial stress is an everyday pressure. According to a CNBC Financial Confidence Survey, 70% of Americans feel financially stressed. They’re worried that their savings won’t last and that they’ll have to rely on emergency loans.
3. Seizing Opportunities
When money’s tight, you’re always on the back foot reacting to financial situations, like an unexpected trip to the clinic. But when you achieve financial flexibility, you start to move beyond immediate problems to look forward to the future and seize opportunities as they arise.
Whether it’s starting a business, pursuing further education, or investing in promising ventures, having financial resources at your disposal gives you the freedom to take calculated risks and explore new avenues for growth and success.
Bottom Line:
Flexibility is more than just touching your toes. When it comes to your finances, it’s the ability to seize opportunity, reduce your stress, and adapt to problems as they arise.
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