How to be Financially Stable in 5 Steps!

Selriel By Selriel, 6th Oct 2015 | Follow this author | RSS Feed | Short URL http://nut.bz/rxzmz89h/
Posted in Wikinut>Writing>Personal Experiences

People often spend their lives chasing financial stability. Here are tips on how to become one.

Secrets unvieled

People often spend their time pursuing financial stability. How can you tell you reached your goal is another story. Creating plan for your aim is often hard to make happen unless you learn basic tips on how to become financially stable.

Here are 5 steps:

1. Improving Cash Flow
If you are spending more than you earn, this reflect a sign of a bad habbit that you need to improve. Track down every cash purchases and credit bills. Classify them into categories such as food, rentals, travel and clothing. Assign a ratio or percentage based on your budget. This may help you track down expenditures you are spending too much and can make adjustments.

2. Getting Out of Debt
Stop using credit card as an extension to your paycheck. Outstanding balances on you cards for everyday means you are paying more once you have been charged interest.

Establish a monthly plan to pay all your outstanding bills. It is wise to pay off your bill in order of size from lowest to the highest. It is not only help you eliminate multiple creditors but it can also help you focus on who to pay off first.

3. Setting up Emergency Fund
After paying off other bills, place your extra money on savings. Don't spend it. This fund may help you in unexpected house expenses, repairs and even unemployment.

4. Be protected from life's risk
Everyday we are exposed to different life risk. If unprepared, this will give a real meaning to game over, if something happen to you. Be wise on choosing health and insurance company who will cover your protection for such scenario.

5. Invest for future
People only have 2 problems in life: either he die too soon or live longer. If you are going to reach your retiring age it is better to have fund for it. Set goal, plan how will you spend your old days, finance it and start saving now.

Tags

Finance, Finances, Financial Control, Rich, Risk, Stable

Meet the author

author avatar Selriel
An accountant who is fond of writing poems.
I love being a writer, it gives us the opportunity to tell stories, to create a character, to design a situation and be God of our own writing.

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Comments

author avatar Retired
17th Oct 2015 (#)

IF I could get my husband to understand this we wouldn't be in the MESS we are NOW !
these are words to LIVE by
AMEN

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author avatar writestuff
20th Oct 2015 (#)

Good sound pointers. Thanks for this informative post.

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