Financial stability is something that almost all of us dreams of achieving. Being able to live without debt or financial worry may at times seem like an impossible task, and it isn’t something that can be reached overnight, but with a little self-discipline, commitment and planning it is certainly attainable. Here are our top four tips to help you build the foundations of financial stability.
Most of us have an active income, we work for a living, but there are other ways to earn, and now is the time to start building yourself a passive income as well.
Saving or investing a portion of your money in stocks, bonds, cryptocurrency, or other viable financial instruments is one of the best ways to earn some extra income on the side.
However, the world of investing is not a place to delve into blind, and to many people, it can seem like an intimidating place at first, therefore it is important to do your research.
Luckily, there are heaps of resources available online to help you figure out the ins and outs of the trade. Whether you want to get your head around candlestick charts, figure out what exactly cryptocurrency is with a Bitcoin buying guide, or just find out more about the profitable world of property.
It is important to research as much as you can and cover all different areas. As, although investing does come with inherent risks, spreading your money across different avenues, and creating a diverse portfolio is the best way to maximise gains and minimise losses. So, make sure you know your stuff, and if you still aren’t confident, consider talking to a financial advisor.
Also read: The Proven Top 10 No-Code Platforms of 2021
You have probably heard this one before, and you will most likely hear it again. But creating a clear budget is one of the most important steps you can take right now to get your finances in check.
I know, a budget isn’t the most glamourous thing in the world, it sounds like a lot of work and a lot less fun right? Honestly, it isn’t that bad, a budget is effectively just a tool to help you track where your money is currently going and figure out where you want it to be going instead.
First things first, you got to figure out the essentials. Things such as rent, mortgage, bills food and transportation may all go on this list and should make up about half of your spending.
From there you should try to put around 10% – 20% of your remaining funds towards your future. Your savings, retirement plan, all that good stuff. The earlier you start investing in your future the better
Once all of that is out of the way, you’ll be able to see how much you should have left to live off, is there a surplus for personal spending, or a deficit? By now you’ll be able to see where you might be spending too much and where changes might need to be made.
To help with creating your budget you can always check out the app store on your phone, these days there is a multitude of apps available to help manage your finances. Just make sure to do a bit of research and check out user reviews before settling on one.
Similarly to creating a budget, this is probably advice you have heard before. Maybe you dismissed it, or you simply had a hard time following it. Well luckily for you now that you have a budget in place (nudge, nudge), this next tip should come naturally.
Creating a budget goes hand in hand with living within your means, you have already identified the areas in your spending habits that could be altered or reduced, now you must realise that every dollar saved is a dollar earned. If you regularly spend more than you earn, you can hardly expect your savings to grow.
We live in a world where we are constantly told to spend, with tailored ads delivered directly to our social media feeds it becomes extremely easy to start spending more on things we don’t need. You may even consider installing an ad blocker to help break the loop.
Of course, living within your means doesn’t mean that you can’t enjoy yourself from time to time, and it doesn’t make you cheap either. It simply means you are disciplined with your money. For example, instead of going to an expensive restaurant, invite your friends round for a dinner party in the garden.
Also read: 10 Best Saas Marketing Tools And Platforms For 2021
So, you have created a budget and cut down on expenses, perhaps you have even invested some of those savings into the stock market. Well, now is the perfect time to pad your emergency fund, or if you do not have one yet (which you should) create one from scratch.
Nobody knows what the future holds, and rarely has that been more evident than now. An emergency fund is a way to protect yourself from the unexpected. Unemployment, car repairs, appliance breakdowns. Unexpected costs and financial emergencies can crop up at any time, and it pays to not have a safety net.
Financial experts recommend between 3-6months of after-tax income as being a sufficient emergency fund to weather any storms, should you find yourself in a sticky financial spot.
Unlike your savings or retirement fund, an emergency fund should be kept in an account that is always easily accessible, where the money can be withdrawn quickly and without incurring any fees. It is also important to keep your emergency funds topped up for when you truly need it, it is not a reserve that you can dip into whenever you like.
Also read: Top 10 Job Search Websites of 2021
Financial stability is the freedom to live life without constantly worrying about how you’ll pay your next bill. Achieving it is difficult, and at times may even seem unreachable. But with a bit of discipline and a clear financial plan it can be done.
Whilst our tips will give you a good basis to get started there is always more that can be done, so make sure to keep researching, talk to experts and financial advisors, and stick to it. There is never a better time to start than today.
Monday September 13, 2021
Sunday September 12, 2021
Saturday August 28, 2021
Monday August 16, 2021
Saturday August 14, 2021
Thursday August 12, 2021
Friday August 6, 2021
Tuesday July 27, 2021
Saturday July 24, 2021
Thursday July 22, 2021