Could you cope with a shock to your bank balance?

Imagine the dentist has just said you urgently need a A$2,000 dental crown. A week later, a pipe in your bathroom bursts, causing $8,000 worth of damage. Suddenly, you’ve been hit with a $10,000 financial shock.

As the cost-of-living crisis plunges more households into financial uncertainty and at least one-third of Australians struggle to make ends meet, it’s more important than ever to ask yourself: how financially resilient am I?

Being financially resilient means you aren’t left financially devastated when an expensive emergency creeps up on you. Here are five key signs of financial resilience.