Whether you’re just starting your career or you’ve been working for quite some time, you may not have found balance in your financial life. Much of our lives revolve around seeking and maintaining financial stability, as it allows us to feel secure in our present circumstances and plan ahead for the future. But many Americans don’t feel financially secure, with just over half describing their lifestyles as “paycheck to paycheck.”
With that in mind, we thought that outlining some of the best strategies for finding financial stability could be helpful for our new customers. In this article, we’ll explore the tips that experts say are the surest way to find solid financial ground and start building wealth that you and your family can enjoy for years to come.
How Do You Define “Financial Stability”?
Financial stability is not as nebulous a term as it may seem, and it can apply to people from practically any income bracket. Financial stability is a state in which an individual can:
- Create and follow a budget
- Pay off debt comfortably
- Afford to save or invest 10-25% of their income
- Plan for future acquisitions of property or other large assets
- Increase or maintain their credit score and
- Increase their wealth year-over-year
This stability is crucial to achieving the lifestyle that many Americans aspire to. So how to go about obtaining it?
Get Educated
This doesn’t necessarily mean you need a degree— it could apply to an individual trade or to a “hobby” that becomes a career. Regardless, investing in yourself and acquiring the education necessary to become better in your chosen field is a key aspect of financial success. If you choose to remain comfortable, you can expect to see wages stagnate, and your prospects of financial stability decline sharply.
Choose a Fulfilling Career
This point goes hand-in-hand with education. Choosing a profession that you have a genuine passion for can help you be motivated to learn and grow in that field, making you more desirable and valuable to employers. This can also help you see the slow climb to wealth as a journey rather than a daily chore.
Cut Out Unnecessary Expenditures
If we’re being honest with ourselves, we can probably all think of one or two things we’ve bought in the past week that we didn’t honestly need. While living a spartan lifestyle isn’t necessary, most of us could benefit from cutting back on spending on the things that don’t really benefit us. Especially if those things actively hurt us, like unhealthy food, alcohol, and tobacco.
Equity Bank’s online budgeting tools can help you organize your expenses and rein in frivolous spending.
Tackle Debt Early
Debt interest can become the metaphorical iceberg to your financial Titanic. One crucial tactic that all financially successful people use is to get out from under their debt as early as possible, before interest becomes an unbeatable foe. This does not mean you can’t leverage debt intelligently— just the opposite! Debt can be a fantastic vehicle to wealth as long as it’s paid off on time and interest is kept low.
Check out Equity Bank’s offers for personal and auto loans for the best rates in the business.
Create an Emergency Fund
Bad luck strikes. You get in a car accident, or experience a medical emergency. If you have an emergency fund set up, then these incidents won’t harm you too much financially. If you are unprepared, however, this can cause a major disruption to your financial well-being, even setting you back years depending on the severity of the incident. Experts say an adequate emergency fund should total 3-6 months of expenses, and should only be used in the event of a true emergency.
Financial stability isn’t far away when you stay disciplined and use a trusted partner to help you navigate the difficult parts. Equity Bank’s commitment to our community gives us unique insights into the needs and desires of our customers, and allows us to overcome their biggest financial challenges together.
Contact us today, or visit your local branch to speak with an Equity Bank professional who can set you on the path to financial stability and true peace of mind.