Being financially stable means you make good money and spend it far lower than what you earn. You don’t need to be relatively rich, but able to support yourself and family without any financial problems in daily life.
It requires discipline in everyday lifestyle and responsibility for your future. You need to have visions about what you want to become and plan on how to accomplish them.
Here are 8 ways to become financially stable, regardless of how much you earn, how much money you have and how much in debt you are currently.
Cut out your spending habits
Cigarette, coffee, snack, going to pub or watching movie at cinema could be your big money wasters. Try to reduce or much better, quit.
Reduce or eliminate unnecessary bills and fees
Are there any subscriptions you don’t really need? Do you have lots of credit cards? Or any other services that require payment? Check and evaluate them. It is better to eliminate unnecessary bills and fees.
Financially stable people spends less than they earn. Calculate and plan your money. It’s best if you’re able to save more than 30% of your income.
Create a budget plan based on your earning
Do your math. Try to split and arrange it for expenses and savings. If you’re in debt, budget your payment arrangement as well.
Eliminate and prevent debts
Though not all debts are bad, but always calculate carefully before deciding to take loan. Debts has psychological impact that’s mostly stressful. Planning your debts, knowing how much interest you pay, how long you need to pay and whether it’s affect your income are essential in financial stability.
Take care of your health
Medication is expensive. Medicine is expensive. It’s better to live a healthy life to reduce risk. So, always eat healthily, reduce your stress and exercise everyday.
Make an investment
Consider an investment in assets or business to earn more. However, there’s always risk in investment, but you can choose the most secured one, such as real estate and gold.
Plan your life
Write down what you’re going to be in 5, 10, 20, 50 years to come. Create your goals, plan and act to reach them.
Being financially stable is not that difficult to achieve as long as you’re responsible, discipline and have strong will.
Do you have any other tips to help others to be financially stable? Let’s share your opinions in the comment box below :).
Wahidin Wong is a digital marketer. He is also a jazz and bossa lover.