Financial Stability is more about doing the best with what you have and less about achieving a certain level of income. (Erik Wecks) 

Wouldn’t it be amazing not to have stress about your finances for once? Every month most of us wait to have a paycheck from which we get our dues done and then we’d start waiting for the next paycheck again. This month-to-month life seems like a cycle where we just live life from salary day to the next. How should you have enough in your account to cover your expenses and still afford the lifestyle you’ve always dreamed of?

With financial stability, you’d not be living a life of suffocation and distress. Trust us when we tell you this: it takes more than just manifestation and affirmation mantras to get financial stability. Everyday changes in habits and decision-making bring about a change in your financial well-being which collectively becomes a very good financial standing. After all, we’d want you not to be doing a 09 to 05 job forever! Below are some amazing tips for the financially sound position you aspire to get:

1- To Budget Or Not To Budget?

You must have heard from everyone that financial problems are solved through budgeting. However, a lot of people find it hard to stick to a budget. To stick to a budget we suggest in the first month of getting control of your finances, save every receipt and track your spending habits.

We live in an era where we are stormed by information about what we should buy, and every other thing seems to be a must-have! When you see from a logical perspective the stuff you bought and whether you use it or not you might scream as Shaggy Rogers screams in scooby doo whenever he sees a monster.

Well yes, the habits we tend to have about spending and ease of spending through one-day rush deliveries make us spoiled big time and yes, that is scary! Once you’ve traced your spending habits for a month, now you are in a better position mentally to exercise strict control over your money spending. Now you can make a budget that you’d successfully follow.

2- Create An Emergency Fund

Life is replete with uncertainty. There might come days when you’d have to go without a salary. Remember the COVID lockdown crisis? In order to go through tough times with one less worry, set up an emergency fund to cover your basic cost of living for some time. Aim for having at least 06-month expenses covered by your emergency funds.

You can make this process digital by having separate savings account for emergency funds or make it fun by having expense folders. Emergency funds and retirement savings are two different things. Emergency funds are for sudden, uncertain circumstances for which you might require a significant chunk of money.

3- Have A Side Hustle

There are several ways in which you can earn a couple of extra bucks. Your side hustle gives you a little bit more money on top of your salary. It allows you to have more than one income source. Side hustles such as freelancing could give you some extra money to save! Side hustle increases financial security.

4- Think Ahead

When we are energetic and full of dreams, it’s hard to think about what would become of us ten years from now. However, financial stability comes with having a futuristic outlook. YOLO lifestyle would suit a troubadour perhaps, but you reach a certain level of maturity when you are already thinking about your retirement plans!

Save money for your retirement.  This means that you’re taking into account days without salary and how to get about them. The goal is not survival at that age but rather a comfort. After all, if someone spends their entire life working from 09 to 05, it is a shame not to have retirement savings or plans.

5- Be Strict On Yourself

Our desires are like a beast unleashed which should be tamed. This means that every time Kylie Jenner launches a new series of lip kits, it is not obligatory for you to break your account to buy them. The capitalist economy and digital marketing both exploit consumer psychology so that purchase intentions and re-purchase intentions are developed. You should pause and think about whether you need to buy that new lip color when you have plenty getting dried in your drawer because you’ve hardly used them. This pause and assess behavior is going to help you make smarter decisions financially by taking a step ahead towards ensuring your financial stability.

6- Invest In Yourself

Most of us are salaried people and rely on paychecks. Not all of us are entrepreneurs or business owners. Getting into a comfort zone where your career growth stagnates is a terrible place to be stuck in. And you should immediately take measures to self-assess and be self-motivated. This means that in the fast-paced world where skills and talent are valued, continue upgrading your knowledge and skills to avoid getting obsolete. This is an investment that renders both ways. First, you’d be able to quickly ascend to the top of the corporate hierarchy. And second, you’d be able to score better opportunities for yourself!

7- Pay Off Debts

Credit card payments, loans, mortgages, or other debts should be eliminated asap. For that, you can have a financial plan to pay the specific debt in a specific period. Firstly, take into account all the loans you have to pay at the moment. Then prioritize finishing them in order them start pumping money. Even if you manage to pump $50 extra each month, count it as progress. This would help to develop intrinsic motivation to achieve the goal of eliminating that debt asap. Just like levels of video games, consider it as a challenge and use your resources to make the best finish!

8- The Folder Logic For Your Expenses

For your expenses like groceries and utilities allocate money into a funds folder. Suppose you have allocated $50 for weekly groceries, through sales and promotions if you are able to save some money at the end of the week. Tracking your expenses would be easier. You can avoid money leakage through irrelevant expenditures.

This folder habit helps people to establish financial responsibility and compartmentalize their salary into needs and wants. It is an easier method for being financially stable and helps to curtail impulsive buying. So the next time you go to a mart for groceries, you will not end up buying a pack of 06 air diffusers just because they were on sale. You’d be able to know which sale is beneficial for you and the specific amount of money you should cap for each expense.

9- Automate Savings

Banks offer services where you can auto-allocate money. As soon as your salary is credited you can make settings so that a specific amount automatically lands in your savings account which you do not touch and manage your expenses from the remaining salary amount.

Going digital helps a lot. You can even automate paying your bills such as rent as soon as your salary is credited. This would firstly make your mind free from one chore that is paying the bills and allot you a sense of freedom that you’re month’s rent and bills are fully taken care of within the due date! This means no extra charges inflicted on you because you forgot to pay your bill on time. Welcome to the adulthood phase which is automated for all your financial payments!

10- Focus On Your Net Worth

Strive and hustle to increase your net worth. Net worth is not just for celebrities but for everyone. Your net worth will increase as soon as you pay off debt, make investments, get a promotion, or increase in salary.  Find new ways to make money and research them before you start. Once you start stay consistent.

BONUS TIP

Read about financial well-being and the global economy. Read websites like ours which nurture your mind with wholesome content and expand your horizons! Reading would do wonders. It will open your mind to new ideas for creating financial stability and new ways to achieve your goals!

CONCLUSION

Financial stability is a dream most make but do not achieve. Because they fail to develop a practical approach toward achieving their dream! Once you have started to be financially informed, you’d develop an urge to handle your money more responsibly. You’d be able to make better decisions and control money drainage while creating more sources of money inflow! Moreover, you’d see the perks of making financially informed decisions once at the end of the year you see your savings accounts brimming with more savings instead of being empty! You’d feel liberated when you free yourself from financial stresses and you’d be able to enjoy life to the fullest.