With the start of a new year millions of people across the country will be united by one goal: achieve financial stability.
Financial stability is sure to bring far greater enjoyment than any of the traditional New Year’s Resolutions. The only way to truly achieve financial stability is to keep your eyes on the prize at all times.
Follow the 10 steps below, and you won’t go far wrong.
#1. Analyze Your Spending
When thinking about our finances, it’s easy to fall into the trap of focusing solely on the revenue. In reality, it’s far easier and faster to reduce your outgoings.
You may think that your money is spent wisely, but it’s likely that you are guilty of wasting money in some aspects of your life. Losing the unused gym membership, trading the morning Starbucks trip for a homebrew, and choosing home pampering over a spa day can all help.
There’s nothing wrong with enjoying life’s little luxuries, but you need to prioritize what’s important. If you can lose a few expenses without compromising your happiness, do it.
#2. Increase Your Savings
Removing the negative or unnecessary costs from your life is a great starting point, but you can take things further still. Shopping around can secure savings, you’d be a fool not to take advantage.
Price comparison sites can help you reduce energy bills, broadband contracts, and insurances. Meanwhile, knowing how to ask for coupons can make a significant impact. Placing bulk orders with a friend can save delivery charges on groceries and clothes shopping too.
In many cases, adjusting plans to suit your needs can work wonders too. Cell phone contracts are particularly common sources of this problem. A little research can secure a big discount.
With the money you save, you can buy something you truly want, such as invisible braces.
#3. Sell Unwanted Items
Did you know that the average family possesses unwanted goods that are cumulatively worth around $5,000? The start of a new decade is the perfect time to turn your junk into money.
Whether it’s clothes, electronics, collectibles, or furniture doesn’t matter. Selling those items on the internet or at local events can generate a lot of money. Any cash you gain can be used to clear debts or aid your overall situation in other ways. Either way, it’s better than letting items collect dust. It’s a one-off improvement, but the impacts can be huge.
Crucially, the rewards will be seen with immediate results to get the decade off to a perfect start.
#4. Rebuild Your Credit Score
The fact of the matter is that you will almost certainly need to borrow money on credit agreements over the next 10 years. Whether it’s a personal loan or a home mortgage, getting the best deal is key.
A good credit score will unlock far greater opportunities and lending rates. Using a credit card wisely can aid the cause, and these card verification instructions will put you on track. Keeping your existing accounts free from arrears will also see the situation improve.
Credit histories will impact a host of future agreements. It could quite literally be the difference between becoming a homeowner and renting forever.
#5. Establish A Safety Net
Boosting the health of your finances shouldn’t be limited to creating a better situation for the short-term future. It’s equally important to keep one eye on the future by preparing for the worst.
After all, unforeseen circumstances could destroy your financial situation if you aren’t ready for them. Finding the right health insurance plan is essential while home and car insurance are vital too. Financial worries are the last thing you need when those situations surface.
Besides, putting this security blanket in place allows you to put a greater focus on other actions. Like those that will actually drag you towards the intended outcomes.
#6. Invest In Your Health To Achieve Financial Stability
When you improve your health, you’ll spend less money correcting problems with medications and pain management. Meanwhile, the healthy life can help you avoid costly negative habits like smoking or excessive drinking. This inevitably helps your pocket as well as your body.
Healthy eating doesnt need to be expensive. Likewise, the gym isn’t the only place to get fit. So, the short-term financial situation isn’t an excuse either.
#7. Consider Renting Instead of Buying
We live in a society that encourages us to believe that ownership is everything. It isn’t. On the contrary, learning when to rent or buy assets in the right situations can be the key to financial security.
For example, renting an outfit for a family wedding or business event can pay dividends too. It lets you enjoy luxuries at a smaller cost. When you change your mindset in this manner, the influence on your financial situation is huge. It is a crucial element in the formula for success.
#8. Invest In Your Career
Making your money work harder is a responsibility that everyone should embrace. Then again, the start of a new year is the perfect time to seek a change of career for increased earning potential.
The average person changes jobs seven times in a lifetime. When coupled with thorough job research, success is assured. It is also possible to seek internal promotions or ask for a raise. Either way, you have to be proactive.
Money isn’t the only barometer of success in your career, but it is the main reason for going to work. Forget it at your peril.
#9. Look For Secondary Revenue Streams
Many people fall into financial insecurities because living costs increase at a quicker rate than salaries. If your primary source of income isn’t big enough, creating a secondary one is key.
One option is to take on a part-time job on the side. Alternatively, you could launch a side hustle. Focus on something that you feel passionate about, and it’ll become your new hobby as well as a revenue source. This can make all the difference during the difficult moments.
#10. Learn To Say No
From the very top of this blog post, there has been no ambiguity regarding the need to maintain control in a range of situations. However, personal restraint is only the start. One of the hardest challenges is learning to say no to others.
Whether it’s a sibling asking for money or friends wanting you to go on a vacation you cannot afford doesn’t matter. Stopping those negative influences allows you to focus on actually putting your finances back on solid ground.
As with many aspects, embracing the new habit is the hardest challenge by far. Once you have developed the right mindset, maintaining it is easy.
Conclusion: Financial Stability
Financial stability doesn’t come easily, but it can be achieved. Act in a responsible manner that covers the immediate and long-term goals in relation to both spending and income. When you do, you’ll be on the right track to success.
The journey ahead is still long. Still, knowing that you’re moving in the right direction will provide a great deal of comfort.
Greg is a Chartered Financial Analyst (CFA) with 22+ years experience in Financial Services. He has held numerous FINRA Securities licenses (series 7, 63, 65, and 66), and is an expert on Investment Products and Financial Planning. Greg has 22+ years experience as a real estate investor and degrees in Psychology and Philosophy.
Greg has been quoted/interviewed in Yahoo Money, Yahoo Finance, USA Today, Authority Magazine, Realtor.com, Business Insider, and others.
Greg is an avid runner, and the father to identical twin girls and their awesome brother. His love of budgeting and his kids led him to join The Great Resignation in 2021.
Disclaimer: Any Financial Tips on ChaChingQueen are general and informational. Speak with a professional about your specific situation.