What’s your idea of being financially stable?
Being financially stable doesn’t include living a luxurious lifestyle, although not having to live paycheck to paycheck can be considered a luxury.
Being financially stable means being comfortable with your financial situation. It means being debt-free, having more than enough money to pay bills, and not having to worry about money at all.
I can’t speak for your financial situation, but I know that I can speak for both of us when I say that becoming financially stable would be a dream come true But there are two kinds of people in this world: dreamers and doers, and I’m ready to become a doer by modeling my finances and lifestyle after the habits of people who have achieved financial stability. If you’re ready to get your money in order, check out these habits of financially stable people.
1. They Live Below Their Means
The number one reason why financially stable people are in the position they’re in is that they spend less than they earn.
Keep your monthly expenses below what you can afford to start living below your means.
2. They Track Their Spending
Does it feel like your paycheck disappears a few days after you get it?
Do you look at your bank account and wonder where your money has gone?
Tracking your spending habits will show you what you’re spending money on.
Keeping track of your purchases helps you identify bad spending habits that you can cut out to save money.
3. They Know the Difference Between Wants vs. Needs
Needs are things you need to survive. Wants are things you buy for fun, to make you happy.
Financially stable people know how to prioritize needs over wants by focusing on what’s important.
4. They Stick to a Budget
It’s easy to make a budget, but sticking to a budget is another challenge.
Financially stable people create a budget that works for them and fits within their daily lifestyle.
5. They Get Rid of Debt Fast
Being in debt is like having a dark cloud hanging over your head all the time.
Financially stable people know that debt lowers their credit score, so they do whatever they can to get out fo debt and stay out of debt for good.
They find a side hustle for extra income and pay more than the minimum amount required on their monthly debt payments.
6. They Ask Professionals for Help
There’s nothing wrong with seeking advice from someone who has experience and knowledge.
Financially stable people ask financial coaches for help to get their finances on the right track.
7. They Plan for the Unexpected
Life is unpredictable. A car breakdown, a medical bill, or a job layoff can send you into a financial turmoil when you least expect it.
Financially stable people have enough money to cover 3 to 6 months of expenses in their emergency fund to keep them afloat.
8. They Set Realistic Goals
Want to buy a house before you turn 30?
Want to pay off your student loan debt in 6 months?
Write down your goals, examine your financial situation, create a plan with steps to achieve your goal, and go for it.
Financially stable people are where they are today because they created goals and achieved them.
No matter where you are right now, you can become financially stable. Take control of your spending, tackle your debt, and live below your means to start your journey towards financial stability. Share your tips in the comment section.