Hey friends, If I ask you whether you all want to maintain your financial stability or what you want yourself to get trapped in the debt cycle. Your most probable answer would be to maintain your financial stability. But, do you spend your money that way? Unfortunately, the answer for most of you would be No. Most of us spend enough money on unnecessary things that may not have any value in the future or even not today; you just bought it to impress others or by peer pressure. Hence, if you don’t know how to spend wisely, you will get trapped in the debt cycle sooner or later. In this blog, I will share 6 ways to maintain your financial stability and increase your wealth.
No matter what your salary is, you can be a wealthy person if you spend your money wisely. However, even if your salary is so high, but you don’t know how to spend it wisely, you would also be trapped in the debt cycle. Hence, you must understand the fact that “maintaining wealth is much more important than creating wealth.“
I am now coming to the main topic that I want to share with you in this blog.
6 Ways To Maintain Financial Stability
- Avoid Too Much Greed
You all would have heard about the story of the greedy dog that gave the moral of not being greedy. But greed is good if it is in a balanced amount. For example, you have agreed to wait to grow your assets more to sell or put a lump sum amount when the market is dropped. But, If you are too greedy, you will lose all your money. In the book ” Rich Dad Poor Dad,” Even Robert Kiyosaki said little bit greed is good, but too much greed is harmful.
- Track Your Expenses
Keeping track of all your expenses (even if you bought Re. 1 toffee) is a good practice to maintain your finances. You get to know about all the things you have to spend your money on, and hence it helps you avoid extravagant expenses. This small practice will not only help you to avoid extravagant expenses, but it also shows you a mirror of what you spend and what you save.
- Avoid Taking Personal Loans
Usually, people take personal loans to buy expensive vehicles, phones, etc. But, if you are about to take a personal loan, I highly suggest you stop it right there. No one should put herself in debt until it’s an emergency or a much-needed loan. Especially when you are in your 20s or early 30s, don’t take any personal loans. You would spend half your life paying EMIs and won’t be able to save or invest anything.
- Focus On Building & Growing Assets
An asset is anything that grows your money even when you don’t do anything (while you are sleeping). All the wealthy people have a solid asset column in their balance sheet as they know the value of owning assets. If you want to become financially stable, you must focus on building & growing your asset column. Some common assets are Stocks, Bonds, Mutual Funds, Real Estate, etc. Invest your money in them and let them grow automatically. Although there are many assets to invest in, your brain is the biggest asset you have, so never hesitate to invest in yourself.
- Build Multiple Streams Of Income
This pandemic has taught us nothing is permanent, not even your job or business. You can lose anything at any time, and hence, you must prepare yourself for any situation that may come in the future. Even if it pays you well, depending on only one income stream is not a good approach to maintain financial stability. Creating multiple income streams by acquiring and diversifying your assets is necessary for anyone who seeks financial stability, even when the whole world is drowning.
- Save Enough For Your Future
Investing a good amount in assets is good. But, you must save enough for emergencies. For example, during the pandemic, when the whole market was crashing. Most people didn’t earn from their assets, their savings were the only thing that made them survive. Hence, saving a small portion of your salary and not taking it out until it’s an emergency is a must to become financially stable.
These were the ways to maintain financial stability. I hope you would have loved this blog. My suggestion for all my readers would be to become financially stable and make your future self proud.
Check out our other blog: How To Invest Your Money Wisely
KEEP SMILING AND STAY ENERGETIC 🙂