You might think that simply clicking your finger and winning the lottery would solve all your problems. It’s been proven that instant money isn’t the problem solver you once thought–recall the stories that come out of lottery millionaires going bankrupt after a few years or even months.
But more than just having money, you must also know how to be stable with it. Having a financial stability doesn’t mean being wealthy, but it does mean no longer living paycheck to paycheck.
You have actual control over your spending and you might not have millions in your bank account, but you don’t have worry either. Is this possible for the average human? Absolutely!
Put these steps into place for financial stability in your life:
1. Get to know your wallet. I’m sure you already think you know your wallet, but not in the sense I’m talking about. Keep an accurate list of the money coming in and going out. Add up each cent for a month so you actually know your money and where it comes from and goes.
- Get to know where you actually are financially. Are you better off than you previously thought? Maybe you didn’t realize gourmet coffee was becoming an actual line item on your budget.
- Where can you spend less than you did this month?
- Is there a way to get a little more cash coming in? You’d be surprised how simple this can be.
2. Get rid of debt, high interest first. Did you know that jellyfish have no brains? But you do, so get rid of high-interest debts like credit cards, sucking out a whopping 18% of your debt. The credit card companies like “jellyfish” people, who don’t realize how much their money is leaking out of their hands with an interest like that.
- If your boat is leaking, you’re going to plug the big holes first. Plug this first money hole, and move on to the smaller ones.
- Look at your list from last month to see how much money is going out to debt. Wouldn’t it be nice to not have that list item anymore? It would also be nice to have a home in Monte Carlo, but that’s an article for a different time. Let’s knock out that debt first.
3. Stash money away for a rainy day. The most common advice (and therefore, one I’m liable to repeat) is to have 3-6 months of all your expenses stashed away. That’s huge, right?
Let’s start an emergency fund of $1000. This amount can cover most of the sudden big expenses that life throws at you. When this inevitably happens, you have $1000 to throw back at it. Removing that worry from your mind and just knowing it’s there does wonders for your financial stability.
4. Put money away for the future. Make a monthly contribution of at least $100 towards a retirement fund. That $100 turns into $100,000 over 30 years! Speak to your friendly neighborhood human resources department who can set up all the automatic contribution into the account of your choice. Self-employed? Even better because you are your own HR team.
- $100 might not seem like a lot, but a little turns into a great amount over time. Just like children.
5. Plan your purchases. By now, you would’ve noticed your monthly report of your finances has a lot of items in the “Misc.” column due to impulse purchases. These are one of the most negatively affecting aspects of your financial stability. Fix this problem and you’ll notice immediate and positive effects.
- Set limits for yourself. Try setting a monthly limit to stick to. It’s better to have an upper limit than a complete restriction. This allows you to spend, but keeps it within reason. This also causes you to plan out your bigger purchases so the smaller ones don’t eat into your limit.
- Make a 30-day waiting list. If you see something you “need,” put it on the list. After 30 days, if you still feel that impulse, splurge on yourself. But this simple act removes the impulse out of the equation, and lets you focus on what you truly want.
6. Make a goal. This is like flossing: everybody knows they should, but nobody does. Making a goal for the future isn’t going to stop gum disease, but it will give you something to work towards. Small and large goals both work to motivate you. Try setting a goal to earn an extra $100 a month. Or just try to set a goal to be debt-free in 18 months. Both give you something you can actually focus on. But again, and let me stress this, it will not stop gingivitis.
It is possible to achieve financial stability, which is way better for you than some out-of-the-blue money drop. You learn to manage what you’ve got and get rid of what you don’t need. You can work towards this goal with these simple steps.
Yes, you the simple human can achieve this seemingly superhuman task with only a minimal effort. Even my students tell me that it’s easy! This is what they have achieved in a matter of a month —->> MoneyGoal Review.
Take these simple steps today for the freedom that financial stability gives you, and learn to breathe a little easier. And it feels just as good as winning the lottery.
Share this with a friend, you’ll never know who needs a little financial boost! And I know that you want more info about the workshop. I hear you! Here you go, click here —->> PennyWise Workshop.
p.s. Our next workshop in November is already full and closed for enrollments. Leave me a note if you’d like to know the dates for the next intake.