Where to Start: Financial Resilience Strategies Amid Inflation?

The rising inflation has provoked many people, especially the younger generation, to rethink their financial plans. The decision to postpone long-term financial goals has also become more common and often unavoidable. However, with the right financial resilience strategy, you can still manage your finances and be prepared for emergencies.

Financial resilience is the ability of an individual or family to withstand economic shocks when risks arise, such as layoffs, illness, changes in income, or inflation. Situations like these require prudent financial management to maintain your lifestyle and achieve your financial goals.

According to the Sun Life Asia Financial Resilience Index Indonesia 2025, only about half of Indonesians feel prepared to face financial emergencies. Many feel financially confident despite not having real strategies in place, such as an emergency fund or health insurance. Persistent inflation is a major factor influencing people’s financial priorities, with 62% of respondents focusing more on managing daily expenses rather than saving for retirement or making long-term investments.

To stay resilient amid inflation, you need a financial strategy that can start with simple steps:

1. Record Your Expenses

Identify all your income sources and monthly expenses, then see if there’s anything you can trim. Prioritize essential needs such as food, housing, and healthcare. If needed, categorize your spending by necessity: primary, secondary, and tertiary.

2. Build an Emergency Fund Gradually

One of the most widely practiced financial resilience strategies is gradually building an emergency fund. There are many ways to do this: taking on side jobs or freelance work, considering investments that can generate returns to offset inflation, and separating your spending and savings accounts to keep your cash flow in check.

3. Protect Yourself with Insurance

Inflation has driven up the cost of hospitalization and medical care. That’s why it’s important to choose the right protection as soon as possible, be it life insurance, health insurance, or unit-linked products, to prevent your savings from being depleted when risks occur. Insurance not only provides peace of mind for your family but can also be part of a long-term financial plan that anticipates the impact of inflation.

4. Consult a Financial Advisor

While investment and money management tips are everywhere, there’s no harm in involving an expert to help you stay on track when making important decisions. According to Sun Life’s report, individuals with high financial resilience are more likely to consult professional advisors. The goal is to ensure your strategy is on target and can be optimally adjusted to your financial situation. The good news is that many insurance companies and financial platforms now offer free consultations or online services, so you don’t have to worry about the cost.

5. Improve Your Financial Literacy

The Sun Life Asia Financial Resilience Index 2025 survey found that gaps in financial literacy remain a challenge, with many common misconceptions. For example, some people believe that paying only the minimum credit card bill is enough, when in reality, it causes debt to pile up. Or they may not realize that money loses value if savings interest rates are lower than inflation. That’s why you should work on improving your financial literacy instead of relying on gut feelings, because poor financial decisions today can have long-lasting consequences.

Economic conditions are beyond our control. But you can manage your financial resilience strategy early to be prepared in the future. Financial resilience isn’t about becoming wealthy, but being ready. So, start by learning what financial resilience is and take small steps today to protect your future from financial risks amid inflation.ture from financial risks amid inflation.