Financial sustainability refers to the ability of an organization or individual to maintain financial health over the long term. This involves managing resources effectively to ensure that income consistently meets or exceeds expenses. By planning for future financial needs and avoiding excessive debt, entities can create a stable economic environment that supports ongoing operations and growth. Key components of financial sustainability include budgeting, investing wisely, and diversifying income sources. Organizations often focus on building reserves and reducing reliance on uncertain funding streams. This approach helps to mitigate risks and ensures that they can continue to fulfill their missions, even during economic downturns or unexpected challenges.