Financial stability is something that everyone strives for, especially in times like these with the cost of living so high. Financial stability can mean different things to different people and it is not necessarily about earning an above-average salary. Essentially, financial stability is about achieving a healthy balance between your income and expenses so that you do not struggle each month, you can save money and keep stress levels down. So, what can you do to achieve financial stability?
How to Get There
How you go about achieving financial stability will all depend on your current situation, so a plan that worked for one person may not work for another. A good starting point is to look at your total take-home monthly pay and then subtract your regular expenses to see how much you are spending - this will give you an idea of how much you should be looking to cut back to create a healthier balance.
There are always ways that you can make savings, including shopping at cheaper supermarkets, buying non-brand products, buying second-hand, and cutting out or cutting back on frivolous/luxury spending. Of course, you can also look to boost your income to create a healthier balance and there are many ways to do this. If you are over 55, an equity release mortgage could help to boost your income and improve your situation.
Financial stability is also about keeping up with debt payments, clearing high-interest debt, and investing for the future. It is also smart to have an emergency fund that you can tuck into so that certain situations can be managed and for peace of mind.
Benefit: Mental Health
A key benefit of achieving financial stability that should not be overlooked is mental health. Money is one of the leading causes of stress in adults and it is easy to see why as it can affect all aspects of your life. By creating stability, you will not have to worry about money because you know that you have a healthy balance and this can be incredibly liberating.
Benefit: Able to do More
When you achieve financial stability, you will also find that you are able to do much more. Not only will you be able to afford more luxuries like going on holiday and eating out, but you will also be able to access credit and this is key for major purchases like buying a home or a car.
Achieving financial stability can change your life in more ways than one. It is also something that you do not need to earn a fortune to achieve as it is all about creating a healthy balance so that you can comfortably make ends meet, save money and make smart financial decisions.