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Tuesday, August 23, 2011

Financial & Human Resilience

Fit-Twist Wellness: Health = Wealth

Financial resilience is the ability to withstand life events that impact one's income and/or assets. Some financially stressful events such as unemployment, divorce, disability, and health problems affect individuals. Others, such as recessions, stock market downturns and acts of terrorism, affect our society as a whole.

"Research by Dr. Sharon Danes, a professor and Extension specialist at the University of Minnesota, found that there are 5 characteristics that enhance people's resilience in the face of life's changes and challenges:
  1. Positive people view challenges as opportunities and consistently "use lemons to make lemonade." They reframe situations positively and often use the expression "it could have been a lot worse" when comparing their misfortune to others.
  2. Focused people determine where they are headed in the future and stick to their goals so that life events and other barriers do not deter them.
  3. Flexible people are open to new and different options when faced with uncertainty.
  4. Organized people set priorities and develop structured approaches to manage change. 
  5. Proactive people work with change rather than defend against it. 
Financial resiliency is enhanced with financial resources, such as savings, health insurance, and a good-paying job. Another resource is one's human capital - defined by economists as all of the knowledge, skills, experiences, contacts, and other personal qualities that people have to "sell" to potential employers. Personal health is part of human capital because it affects job performance and productivity. Social capital also increases financial resiliency. This includes a support system of family, friends and others that can provide emotional support, financial and physical assistance during hard times. Practices that can increase financial resiliency are especially important during a tough economy. Every small positive step makes a difference.   

Never consider your education or job training finished. Continue to develop new marketable skills and take care of your health (e.g., good nutrition, screening exams, and exercise) to increase your human capital) and remain employable in today's very competitive labor market." 

Barbara O'Neill, Ph.D., CFP®
Extension Specialist in Financial Resource Management
Rutgers Cooperative Extension
(Source: Rutgers)

Daily Exercise + Good Nutrition = Health
Health = Wealth
Fit-Twist Corporate Wellness

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