Nothing is certain in life especially when it comes to finances. You may have money or you have assets now, you are not certain for sure that tomorrow its value remains the same. This is because of the inflation or whatever economic factors that affects it. Perhaps, this is important to be financially at all times especially for the rainy days. So how do you become financially stable?
Here are some things you need to know.
• Save before you spend- it is a wrong move if you spend before you save. Once you receive your salary, it would be best to get the savings amount and deposit it to a separate bank account. Don’t dare to touch it. Forget about the money once you have deposited it and do not withdraw from it no matter what.
• Avoid using credit cards- it is true that credit cards are so convenient. However, they make you spend the money that you do not have. So when you already have the money, you will end up paying the debt and then you no longer have money again. What is more difficult in using credit card is if interest rates pile up if you cannot pay in full. • Pay in full- if you are using credit cards, pay your debts in full amount to avoid high interest rates. When you pay in full, there will be no interest incurred in your purchases.
• Invest in stocks- get a financial adviser, learn and invest in stocks. Although the stocks can be totally dependent on what the market dictates and there is a higher risk of losing money, once you invest in the right companies, you can surely make it big. • Get life insurance- yes, you will no longer make use of the money when you die, but at least your family will never go broke especially if you are the breadwinner. So invest in multiple life insurance so that once you die especially when your kids are young, you will rest peacefully knowing that at least they will continue living their life without having financial troubles.
• Minimize shopping- do not buy what you do not need. Most of the time, because you are tired for working so hard, you make it an excuse that shopping is your reward to yourself. For instance, even if you have 10 watches, you can’t wear them at the same time. So it would be better to stick to just a number of pieces. Let’s say, one watch for formal events, one for sorts activities and one for daily wear. If you can’t help it, buying jewelry would be better since you can sell it at a good value rather than those items that depreciate fast like gadgets. • Invest in house and land properties- these properties’ values appreciate over time. So if you have money, get hold of these properties. You can lease these properties on a yearly basis or you can sell them in the future. Always remember that if you do the right ways, you’ll surely be financially stable in the future.