There has been a lot of setbacks in the economy since the pandemic. A lot of organizations are struggling with workers salaries, businesses are not thriving like they used to and a lot of economic reforms in the country and the world at large. Market prices keep shooting up and no one knows when things will go back to normal.
Here I have outlined practical ways you can set yourself aside for success and be financially okay this 2022 and beyond. The ability to live comfortably off savings and investments without any form of pressure from debts is something one should crave this period.
10 tips to be financially stable in 2022
1. Visualize first and plan:
Start by checking with yourself what your vision of financial stability is, visualise YOU were you want to be. then get a reality check. There are so many qualified experts who can help you with that. They will examine your present financial state and advice you on a path to follow.
2. Use Budgets:
Learn to make budget for every item, that way you are able to track your income and expenditure. When you budget, you are able to subtract your expenses and decide on how to divert the difference to your other goals for each month. If you have learnt to budget and not using it now is a good time to do so, if you have not learnt, you need to do so.
3. Spend less than you earn:
This is the most difficult task all though it sounds very simple. But the truth is taking up a lower standard of living and expenses will help you put more money into savings and investments.
4. Create smart safety nets:
Build smart safety nets by keeping emergency funds aside. Sometimes you need them to make repairs and other miscellaneous expenses. It will help you not to derail from your goal.
5. Eliminate debt/owing:
Try to avoid all forms credit purchase or borrowing as much as you can. If it is not very important please stay clear of borrowing. It can weigh on you in a way that is not good.
6. Consider your career:
You can’t be financially stable without having a steady stream of income to fuel your savings and investments that will build over time. A lot of people think to be financially stable you need to quit your job NO! speak to a financial advisor about your income, benefits and retirement plans or picture and see if you might have to expand your sources of income.
7. Downsize/cut down expenses:
If you can cut down on your expenses or livings style then it will pay off. If it requires to move from a bigger apartment to smaller one then do so or move to a lower income living area. You can also sell properties you are not using and add the money to your savings or business.
8. Buy assets that generate income:
Buy assets that generates income example real estates, stocks, cash investments and so on these are good passive income sources, though all of them have their downsides. Just do your homework well before investing into it.
9. Invest frugally/carefully:
Take care to invest so that you don’t make bad investment choices that would affect your future. Also don’t forget to know the tax or charges of any investment transaction you make.
10. Always know your stand financially:
Always know where you are financially. Financial planning is not about making financial decisions and assuring you are ok! don’t forget lives and situations change constantly and so your financial planning must be flexible to withstand any positive or negative changes without thwarting your plans to financial stability.
In summary financial independence or stability, involves being diligent and making sacrifices. The smallest move can give you a very big result.
