Gaining financial stability
The main priority of all individuals is to become financially stable, although 100 percent possible yet, it seem hard for some person due to their lack of financial knowledge and understanding to make it possible.
One mistake that most people make is believing that if they get a master degree, and find a great job then they wouldn't have to make and plans towards the future because when they retire their company and union or some governmental plan will take care of them. Some even take it further by thinking that they don't need to make any major plan for the future because they are an heir of a wealthy parent or grandparent so, they sit and wait for the death of their loved ones.
What most fail to realized is that the only way a person can improve or maintain his/her wealth is by making conscious decisions in their spending and investment habits. In the same way, to in reaching any goal in life, it requires a positive mindset and proper discipline and a good financial habit; well financial stability requires the same. If a person wants to build a house, it will warrants a solid foundation, in the same stance to achieve financial stability it warrants a strong foundation.
Without further adieu, here are the four major principles that will bring about financial stabilities in each individual personal lives. First is a protection plan, second a debt management plan, third emergency fund plan and last a proper investment plan. I know you might be thinking, what are these principles and how can they help you when your financial life is already in mess. Sure I understand your situation because I was once there but, I will say to you, it doesn't matter how bad your financial status is if you remain optimistic and seek the financial guidance and knowledge on how to manage their money and work hard at it, surely it will lead financial stability.
There is a proverb that says "the rich will be richer and the poor will be poorer" but the true meaning of this proverb is that people who spend and invest wisely will always get richer and those who sit and do nothing will always get poorer. Even if a wealthy man spends and invests poorly in life over a period of time he will surely become poor. We have to work hard to break this generation habit of poverty and create a profound legacy for the generation to come, that they will have a more financially stable and a successful future.
1. The first principle needed is a protection plan- In order to build a solid financial foundation a person will need a good protection plan. Most individual believe that once they put a little money in the bank (although important) then it will be enough for them to survive but, as soon as the unforeseen arise then it ripe their account clean leaving them or their family with bills and stress.
If a person wants to avoid stress, bills, and financial embarrassments; it would be wise for them acquire an insurance policy or coverage. They must take into consideration that sickness, death, accident, and disaster is a part of life and could happen at any time so, it is very imperative for each individual to seek the right kind of protection plan that can aid them while on the verge to financial stability.
2. The second principle is debt management- If the right kind of debt management system isn't incorporated into one's personal financial life he/she will always find themselves into all type of financial trouble. It is in the best interest of each individual to budget themselves according to their income. In order for this to be achievable, you have to put some things into practice such as control of impulses spending, paying you bills on time, avoid using credit card if not needed or if used make sure it's paid on time, catalog your income, seek ways to increase your income such as getting a part-time job and most importantly put some cash aside for the future.
3. The third principle is to get an emergency fund- It's so vital that each individual has some sort of emergency fund set aside just in case of the unforeseen happening to them and their families. One way in which an emergency fund can be incorporated into an individual financial life is to make sure when buying an insurance plan or coverage that it has an emergency fund attached that can be withdrawn if needed.
Another alternative in getting an emergency fund is to have an investment plan that can not be touch unless it's an emergency. And you should take into consideration that an emergency fund should be able to take care of you and your family for at least 3- 6 months of no income.
4. The final principle is to have a proper investment plan- It is very important that each individual find it vital to invest for the long run. If a person desire is to travel the world with their family or to be able to retire in style it will require a quality long term investment. Although investment is imperative if it's not done wisely, it can be lost is a second. In my next article, I will teach you some safe ways in which you can invest so, subscribe to our blog below that don't miss out. Money doesn't fall from the sky, you have work for it so, be smart.
A strong financial foundation will lead to a more successful future. Get all the financial knowledge and understanding on how to manage your money. Remember in order to have a financially stable future you going to need a good protection plan, also debt management plan, you will need an emergency fund for the unforeseen and it must be a priority that you invest wisely. If these principles are adhered to and put into practice and the proper discipline coupled with a positive mindset and intertwine with good financial habits, it is without a doubt that it will lead to financial stable future for you and your family.
Bill Gates once said "If you're born poor, it's not your mistake. But if you die poor, it's your mistake!"
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