How would you like to have stable finances and be free from debts?
Sounds great right?
Well, this is very possible and in today's article, we'll be looking at how having the right methodology in spending can stabilize your finances.
Let's get to it
Financial stability and spending habits work together. You can't be financially stable when you spend extravagantly. Your finances will run dry, and you'll be forced to borrow, thereby putting yourself in debt. You have to take some radical steps to put yourself on the right path.
Spending culture has been a trend pulling habit, hefty amounts of money are being lavished off on unprofitable commodities, services and goods on a daily basis. If I am being RATIONAL, spending is much more destructive than investing! There's always the knowledge that RISKS are involved in investing but in spending, it is usually outlisted, irrelevant, unnoticed and inconsiderate. Hard to get the BAG but easy to let it go and Regret.
Nevertheless
Here's A Few Crucial Steps To Fellow:
Setting a budget/Table of preference
This is the very first step you should take if you want to have stable finances. Setting a budget would help you have a guide on not to overspend. A Budget serves as a roadmap, keeping track and intact all your monetary funds, income rates and allocations set out to consume those income, listing from the most relevant to the list required. A budget pretty much controls your finances, when one has a plan, then alternatives are not given a chance to intrude and rob the system, that's how important a budget is!
Debts Tracker
This is much necessary when you're already in debts! The similarities between this and a table of preference is tight but not quite synonymous! How? Debts tracker only contains bills and fees you need to settle, but a table of preference covers all your financial activities. Keeping records of debts you owe to avoid surprise bills are crucial, sometimes a table of preference can become bugging and so you may miss out on some details that should have been observed and dealt with. Then it is necessary to have one more jornal for the purpose of keeping debt tracks and making sure they are taken care of in due TIME with the help of the Budget!
Stopping impulse buying
Try not to spend impulsively, stick to your budget and basic needs, Clear? I expatiate.
The budget may just be a BOOK! and has little or no effect DUE to impulse Buying! "Oh let me just buy this and that, it won't make much of a difference" A pretty FLAWED action to me and a much rider of financial problems. You spend outside the budget thereby rendering it Useless, so then it can never serve its purpose. Quit It!
Paying off higher interest debts first
Pay off higher interest debts first as this would help you get out of debts entirely and quicker, avoid procrastinating payments to eradicate additional expenses. It's a simple logic, yet crucial and that implies Very Important! Loans that come with interests are the bigger bulls of increasing the loaners finance and a bear of reducing the takers wallet! It's an Uptrend and a Downtrend. Profit and loss, one side must win! Nevertheless, if one is already found in this " financial agreement" plans on paying off those debts are highly advised! The more the time of payment is prolonged, the more the rate of payback increases, that's all the game! It's like an investment played on another man's head and ripping the profits with no stress.
Building up your savings
This is one of the most important steps. Sticking to your budget and not overspending would allow you to have extra funds. Set aside these funds as a cushion for you to fall on in case of emergencies. That's all what saving is About! Nevertheless, take note that profits are what you're saving, not a business capital or a summarized earning! A lot of people make these mistakes but I am here today to redirect that flawful decision, save some profits and smile later when you don't have to worry about emergency projects.
Making investments
Some percentage earnings should always be invested or re-invested! You don't build on a paying job, nor build on previously yielding investment that has been shut down. There's always a need to re-invest or invest on independent finance projects, self employment is rather productive and crucial! Think about that.
Additional Tip:
Invest in your future, buy stocks, shares, assets like land, you can use those extra funds to do this too and secure yourself some wealth :)
Spending Habits can push you to debt and cause financial distress. Eliminate all bad spending habits and stabilize your finances today.
"I believe that through knowledge and discipline, financial peace is possible for all of us"-Dave Ramsey.
