In order to build a life of financial security and freedom, it’s important to develop money management skills. Having a personal budget that you stick to no matter what can help you keep track of where your money goes. With the pandemic wreaking havoc on both lives and businesses during the time of this recording, being able to construct what I call a “financial battleship” is more crucial than ever.

What is a “financial battleship”? Basically, a battleship is a big strong boat that can withstand a powerful hit. You want to have enough resources so that you can withstand some of the challenges that arise during life and business.

During the COVID-19 pandemic, this idea is very relevant. Businesses are getting reduced in size, having to furlough employees, or getting shut down altogether.

So, what separates those who are being successful and those who are failing? This is where money management skills and your personal budget come into play. Part of it is the decisions we make, but another part of it is how prepared we are for a crisis.

The most successful people I’ve met in my life all tend to have one thing in common: a budget. The ability to take a close look at your finances and set aside the right amount for investment and growth is one key aspect of becoming financially resilient.

If you can stick to that budget that you set out for yourself, you’ll have control over your financial future, making it easier to accumulate resources.

This is the core principle behind a “financial battleship.” When you have the money management skills to gain control over your finances, you suddenly become much stronger in the face of economic downturn. Having a personal budget is a key tool for being prepared.