Financial flexibility is becoming a larger part of money management

Enjoying financial flexibility means you can deal with unexpected expenses, from medical bills to temporary job loss, without hurting your overall money and estate planning. Start building a cash reserve to cover you for several months, practicing flexible budgeting, and reducing your income-debt ratio. Reset your strategy as needed to ensure it fits current goals.

The National Institute for Retirement Savings reports that 66% of Millennials have no retirement savings. With things like Social Security at risk, more Americans should start saving and building assets in any way possible.

What Defines Financial Flexibility Today?

If you feel you can adapt to economic shifts and unpredictable events without financial hardship, you can say that you have some financial flexibility. It’s defined by having liquid cash reserves and manageable debt. 

You may have physical assets and capital, such as a home, rental property, or a business. There should be a healthy balance between pursuing long-term financial goals and being financially sound in the present to live a comfortable life.

What Are Modern Money Strategies for Good Wealth Management?

Utilize flexible budgeting techniques like automating a percentage of income to savings. 

While building an emergency reserve, strategically spread your cash across:

• Checking accounts for bills
• A high-yield savings account
• Strategic investments like CDs

Investments should be diverse and include some safe-haven options to protect against market volatility.

With stocks, mix some high-risk ones with defensive stocks, which are stocks of products and services people always use, like healthcare and globally known brands. Buy gold in bars, coins, or ETFS, and consider wealth-generating real estate, such as rental property.

Financial planning ideas should include insurance to protect assets and potentially build capital, such as whole life insurance. Homeowners should frequently check their home insurance policy to ensure there’s enough hazard coverage to rebuild their home after a disaster to avoid extensive out-of-pocket expenses.

What If I Need Quick Liquidation?

Financial diversification should include assets for quick liquidation or conversion into cash within hours or days. The first stop is your direct savings and high-yield savings accounts.

You may be able to get a home equity line of credit on your house, which often has lower interest rates. Gold is a physical asset you can quickly liquidate. ETFs and mutual funds can be sold quickly through major brokerages.

If necessary, you can get a cash advance here in as little as 24 hours for unexpected bills and avoid touching longer-term investments.

Learn More About Money Management for a More Secure Life

Prioritizing different assets spread across cash accounts, physical assets, and a mix of high-risk and safe-haven assets can provide the financial flexibility you need to weather economic and personal storms from inflation to the increasing risk of climate-based weather events. In an emergency, you want quick access to cash with the right account without touching the longer-term ones you may have for retirement or to pass to heirs. 

When you’re not spending money, spend more time on our website reading more financial advice to help your current and future planning goals.