Resilience is a popular word these days, used to describe people, businesses, sports teams and more. Resilience is a critical characteristic to have – or build – during times of difficulty. We want to help you become strong enough – financially and emotionally – to weather the storms that come your way.
Here are five ways you can become more financially resilient during a crisis.
- Assess your current situation
Uncertainty is a major source of anxiety. While you may not always want to know your exact financial situation, particularly during difficult times, financial self-awareness is an important factor in your ability to face and overcome challenges.
Several studies have proven that financial self-awareness is associated with positive financial decisions and satisfaction. When you know your situation, you’re better equipped to make choices that benefit you.
This self-awareness comes about by taking stock of your income, expenses, savings and debts. As you gather this information, be sure to take note of interest rates, and payment deadlines, and gain an understanding of what expenses can be reduced or eliminated if needed. Our certified financial planners** work exclusively for dental professionals and their families. They can put together an overview of your financial situation and develop a comprehensive plan to help you achieve your goals and get through challenges you may be facing.
- Prepare for the worst-case scenario
Recent events have taught us that the unexpected can happen at any time. While the COVID-19 crisis was virtually impossible to plan for, being prepared with a ‘plan for the worst’ can help you overcome challenging situations.
For instance, ask yourself: If you became ill or disabled and experienced a prolonged drop in income, how would you fare financially? What if your practice had to shut down temporarily due to a fire, theft or outbreak?
It is difficult to think about extreme scenarios, but imagining the worst can help you prepare for it.
The right insurance can help you be ready. For instance, CDSPI DisabilityGuard™ insurance* helps protect your lifestyle and earning power from a disabling illness or injury that prevents you from working. Speaking to an insurance advisor** at CDSPI can help ensure you and your practice are protected.
- Create purposeful goals
Regardless of the stage of career you’re in, you have goals for yourself – you didn’t get to where you are now without being goal oriented and motivated for success.
The key to becoming or staying resilient in a crisis is to hold on to your goals, update them or even create new ones. Whether it’s buying a practice, paying down debt, purchasing new equipment or advancing your skills, identifying – and sticking to – long-term purposeful goals will keep you motivated, focused and strong.
As you work toward your goals, it’s a good idea to break them down into bite-sized pieces. It’s easier to achieve smaller steps and doing so provides a greater, sustained sense of accomplishment. Remember that our certified financial planners** can help you address both your short- and long-term goals and provide strategies for reaching them. They can also perform an objective review of your overall investments — at no cost to you.
- Improve your financial knowledge
What’s your level of financial literacy? If you have a basic grasp of your investments and the economy, now might be a good time to increase your financial knowledge. Doing so can alleviate some financial stress and boost your confidence when it comes to general money matters. Keep in mind, you will be best set up for success by working with experts who can help you make informed decisions.
- Focus on what you can control. But have a plan.
The economy, the markets, the number of COVID-19 cases in your area… these are all beyond your control. Even your income may be dependent on the country’s health status and related protocols. So it’s best to focus on the controllable elements of your financial health – your spending, saving, borrowing and planning.
During uncertain times like these, the best course of action is to have a plan. We’ll help you thoughtfully adapt your plan to different life scenarios as they materialize.
We know planning your financial future is both exciting and challenging – especially during these unusual times. That’s why we’re here to help. Get started today by setting up a no-cost consultation with an Investment Planning Advisor** who works exclusively with dentists.
*DisabilityGuard™ Insurance is a trademark of CDSPI. See the policy for full terms and conditions. DisabilityGuard™ Insurance is underwritten by The Manufacturers Life Insurance Company (Manulife), PO Box 670, Stn Waterloo, Waterloo, ON N2J 4B8
**Advisory services are provided by licensed advisors at CDSPI Advisory Services Inc.