Financial stability is something we all strive for, but surprisingly few of us ever truly achieve it. Every time you're finally on the right track, something to pop up and ruin even the best-laid plans. While it may never be easy to keep your bank balance and expenses in check, there are some things you can do to help make your money dreams a reality.
(Un)divide and Conquer
Small debts can add up quickly when you consider how much interest you're paying on each. This is especially true if those debts are linked to credit cards or other high interest, low flexibility terms. If you can, it's worth researching cash loans as there are plenty of safe ones on the market, many with far more favorable terms than credit cards. If this isn't possible in your current situation, focus on paying your debts off from smallest to largest and investing all excess cash towards this goal so you can start paying out less and saving more.
Big Picture Planning
If you want to pay off your debts and get a step closer to financial stability quickly, it's going to require some sacrifice. When you're feeling down about what you're missing out on, remember: short-term pain gives you long-term gains. It can be easier to do this if you set goals, with achievable plans, for the next twelve months. For those who like to look further ahead, this step can also be completed for how you want your life to look in five to ten years. By doing this, you will also find it easier to save as your frugal lifestyle will gain a recognizable larger purpose.
Look After Yourself
To be able to function effectively in the world, you need to be doing so within yourself. Make sure you consume a balanced diet and exercise regularly to maintain your physical and mental health. This may seem a strange tip to include in an article about financial stability, but if you're unbalanced within yourself, you'll be unbalanced in all that you do. Staying healthy helps you keep a clear head and exercise releases dopamine which means you'll be focused and happier. This will help you gather the motivation and determination to stick to your financial goals.
Get Organized
Now you've got your debts, goals and mindset in order, it's time to work out the finer details. Analyze your income and expenses, see what spending habits you can eliminate and create a budget to help you move forward. This step is the most important because it's what's going to allow you to execute your plan and reach the end game. Be ruthless when deciding what you need and what's considered a luxury, but remember to put aside a portion of your funds for things that you enjoy as this will help you stick to your budget. In the beginning, you won't have much extra cash, so start small with what you allow yourself to indulge in. Even if it's just ]a block of chocolate, you'll find the little things are what matter in keeping yourself happy and able to stay on track.
Everyone's financial situation is different, and as such, the way you implement these rules will vary. Remember, it's okay if you can't do everything at once, just stick to baby steps and keep moving forward. One day you'll be able to look back at all you've achieved, and when you finally feel comfortable with your financial situation, you'll see that it was all worth it in the end.
