When it comes to actively taking control of one’s finances, to say that it can be difficult to get to a place of routine and stability, would be a serious underestimation. In fact, our financial position is something that people struggle with more and more, as everyday life becomes more expensive and it feels like the costs continue to pile on top of one another. A person’s finances are one of the most important attributes they possess, and so we should be taking more consistently active care to ensure that we are dedicating enough effort and time to improving and maintaining our financial positions.
While of course we all want to get there, there is something to be said about the difference between wanting something and working to make it possible. There are many reasons – countless reasons, even – to take active and constant control of one’s personal finances, but there are three that ultimately create the trifecta that gets people from point A to point B. But how do you make it happen?
The top tips to achieving financial stability
We have all heard before that budgeting is the only sure-fire way to achieve financial stability. But more than that, how can we stick to the self-imposed budgets we enforce on ourselves? For many of us, it is so easy to say, “I have my next paycheck coming in next week, I can spend a little now and save more of that paycheck”. This is where the problem starts. The three best ways to enforce financial stability are simple.
First, have two separate bank accounts – have your income go into one, and then actively transfer a set amount into the other (your allocated savings bank account). This establishes the mindset of not having access to it – keep the bank card in a secure place at home, so you do not have it on you all the time. Second, map out your monthly income, then segment it into sections (bills, groceries, fuel, social, etc). This makes it easier to stick to the budget, and creates a log of where all your money is going so you can easily trace it. And third, have a savings jar for loose change – it sounds silly, but after a year (or even six months) you could have an extra few hundred dollars.
Being comfortable, while also being prepared for the unexpected
It goes without saying that sometimes we are all in a position of having to sacrifice something we love because we do not have the means available to obtain it, or maintain it. Taking control of your finances allows you to budget and dedicate money to every facet of your life. Being financially stable means that you are more easily able to commit (without guilt) to unexpected costs like home or vehicle repairs, as well as being able to commit to drawn-out costs like lawsuit loans repayments if you require legal representation but cannot comfortably pay for it upfront.
Why forging financial stability is so important
When you are financially stable, you can take on new hobbies or engage in new activities, even purchase new small and big ticket items, that ultimately make your life more comfortable. While money cannot buy happiness, it does indeed buy comfort, and that is something that we all crave. Rather than having to cut back on the things that are not deemed immediate necessities, one can enjoy them plus all their creature comforts. Is this not a good enough reason to take control now?